39. State Financial Corporations.—(1) As from the appointed day, the Financial Corporations
constituted under the State Financial Corporations Act, 1951 (63 of 1951), for the States of Bihar and
West Bengal shall be deemed to have been constituted for those States with their areas as altered by the
provisions of section 3.
(2) Bihar shall be liable to pay to West Bengal on account of its share of the paid-up capital of the
Bihar State Financial Corporation such amount as the Central Government may by order determine.
40. Temporary provisions as to the continuance of certain existing road transport permits.—(1)
Notwithstanding anything contained in section 63 of the Motor Vehicles Act, 1939 (4 of 1939), a permit
granted by the State Transport Authority of Bihar or by any Regional Transport Authority in Bihar shall,
if such permit was immediately before the appointed day valid and effective in any area within the
transferred territories, be deemed to continue to be valid and effective in that area after that day subject to
the provisions of that Act as for the time being in force in that area; and it shall not be necessary for any
such permit to be countersigned by the State Transport Authority of West Bengal or by any Regional
Transport Authority in West Bengal for the purpose of validating it for use in such area:
Provided that the Central Government may, after consultation with the State Governments, add to,
amend or vary the conditions attached to the permit by the authority by which the permit was granted.
(2) No toll, entrance fee or other charge of a like nature shall be levied after the appointed day in
respect of any transport vehicle for its operations in the transferred territories under any such permit, if
such vehicle was immediately before that day exempt from the payment of any such toll, entrance fee or
other charge for its operations beyond the boundaries of Bihar:
Provided that the Central Government may, after consultation with both the State Governments,
authorise the levy of any such toll, entrance fee or other charge, as the case may be.
41. Provisions relating to services.—(1) Every person who immediately before the appointed day is
serving in connection with the affairs of Bihar shall, as from that day, continue so to serve, unless he is
required by general or special order of the Central Government to serve provisionally in connection with
the affairs of West Bengal.
(2) As soon as may be after the appointed day, the Central Government shall by general or special
order determine the State to which every person provisionally allotted to West Bengal shall be finally
allotted for service and the date from which such allotment shall take effect or be deemed to have taken
effect.
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(3) Every person who is finally allotted under the provisions of sub-section (2) to Bihar or West
Bengal shall, if he is not already serving therein, be made available for serving in that State from such
date as may be agreed upon between the two State Governments and in default of such agreement, as may
be determined by the Central Government.
(4) Nothing in this section shall be deemed to affect after the appointed day the operation of the
provisions of Chapter I of Part XIV of the Constitution in relation to the determination of the conditions
of service of persons serving in connection with the affairs of Bihar or of West Bengal:
Provided that the conditions of service applicable immediately before the appointed day to the case of
any person provisionally or finally allotted to West Bengal under this section shall not be varied to his
disadvantage except with the previous approval of the Central Government.
(5) The Central Government may at any time before or after the appointed day give such directions to
either State Government as may appear to it to be necessary for the purpose of giving effect to the
foregoing provisions of this section and the State Government shall comply with such directions.
42. Provisions as to the continuance of officers in the same posts.—Every person who,
immediately before the appointed day, is holding or discharging the duties of any post or office in
connection with the affairs of Bihar in any area within the transferred territories shall continue to hold the
same post or office in West Bengal, and shall be deemed as from that day to have been duly appointed to
that post or office by the Government of, or other appropriate authority in, West Bengal:
Provided that nothing in this section shall be deemed to prevent a competent authority, after the
appointed day, from passing in relation to any such person any order affecting his continuance in such
post or office.