62. Provisions as to Bihar State Electricity Board, State Warehousing Corporation
and State Road Transport Corporation
(1) The following bodies corporate constituted for the existing State of Bihar,
namely:-
(a) the State Electricity Board constituted under the Electricity Supply
Act, 1948 (54 of 1948);
(b) the State Warehousing Corporation established under the Warehousing
Corporations Act, 1962 (58 of 1962);
(c) the State Road Transport Corporation established under the Road
Transport Act, 1950 (64 of 1950),
shall, on and from the appointed day, continue to function in those areas in respect
of which they were functioning immediately before that day, subject to the provisions
of this section and to such directions as may, from time to time, be issued by the
Central Government.
(2) Any directions issued by the Central Government under sub-section (1) in
respect of the Board or the Corporation shall include a direction that the Act under
which the Board or the Corporation was constituted shall, in its application to that
Board or Corporation, have effect subject to such exceptions and modifications as
the Central Government thinks fit.
(3) The Board or the Corporation referred to in sub-section (1) shall cease to
function as from, and shall be deemed to be dissolved on such date as the Central
Government may, by order, appoint; and upon such dissolution, its assets, rights
and liabilities shall be apportioned between the successor States of Bihar and
Jharkhand in such manner as may be agreed upon between them within one year
of the dissolution of the Board or the Corporation, as the case may be, or if no
agreement is reached, in such manner as the Central Government may; by order,
determine:
Provided that any liabilities of the said Board relating to the unpaid dues of
the coal supplied to the Board by any public sector coal company shall be
provisionally apportioned between the State Electricity Boards constituted
respectively in the successor States of the existing State of Bihar or after the date
appointed for the dissolution of the Board under this sub-section in such manner
as may be agreed upon between the Governments of the successor States within
20 The Bihar Reorganisation Act, 2000
one month of such dissolution or if no agreement is reached, in such manner as the
Central Government may; by order, determine subject to reconciliation and
finalisation of the liabilities which shall be completed within three months from
the date of such dissolution by the mutual agreement between the successor States
or failing such agreement by the direction of the Central Government:
Provided further that an interest at the rate of two per cent higher than the
Cash Credit interest' shall be paid on outstanding unpaid dues of the coal supplied
to the Board by the public sector coal company till the liquidation of such dues by
the concerned State Electricity Board constituted in the successor States on or after
the date appointed for the dissolution of the Board under this sub-section.
(4) Nothing in the preceding provisions of this section shall be construed as
preventing the Government of the State of Bihar, or, as the case may be, the
Government of the State of Jharkhand from constituting, at any time on or after the
appointed day, a State Electricity Board or a State Warehousing Corporation or a
Road Transport Corporation for the State under the provisions of the Act relating
to such Board or Corporation; and if such a Board or Corporation is so constituted
in either of the States before the dissolution of the Board or the Corporation
referred to in sub-section (1),-
(a) provision may be made by order of the Central Government enabling
the new Board or the new Corporation to take over from the existing
Board or Corporation all or any of its undertakings, assets, rights and
liabilities in that State, and
(b) upon the dissolution of the existing Board or Corporation,-
(i) any assets, rights and liabilities which would otherwise have
passed to that State by or under the provisions of sub-section
(3) shall pass to the new Board or the new Corporation instead
of to that State;
(ii) any employee who would otherwise have been transferred to
or re-employed by that State under sub-section (3), read with
clause (i) of sub-section (5), shall be transferred to or re-employed
by the new Board or the new Corporation instead of to or by
that State.
(5) An agreement entered into between the successor States under subsection (3) and an order made by the Central Government under that sub-section
or under clause (a) of sub-section (4) may provide for the transfer or re-employment
of any employee of the Board or the Corporation referred to in sub-section (1),-
(i) to or by the successor States, in the case of an agreement under subsection (4) or an order made under that sub-section;
(ii) to or by the new Board or the new Corporation constituted under sub-section (4), in the case of an order made under clause (a) of that sub-section,
and, subject to the provisions of section 65, also for the terms and conditions of
service applicable to such employees after such transfer or re-employment.
The Bihar Reorganisation Act, 2000
2163. Continuance of arrangements in regard to generation and supply of electric
power and supply of water
If it appears to the Central Government that the arrangement in regard to the
generation or supply of electric power or the supply of water for any area or in
regard to the execution of any project for such generation or supply has been or is
likely to be modified to the disadvantage of that area by reason of the fact that it
is, by virtue of the provisions of Part II of this Act, outside the State in which the
power stations and other installations for the generation and supply of such
power, or the catchment area, reservoirs and other works for the supply of water,
as the case may be, are located, the Central Government may give such directions
as it deems proper to the State Government or other authority concerned for the
maintenance, so far as practicable, of the previous arrangement.
64. Provisions as to Bihar State Financial Corporation
(1) The Bihar State Financial Corporation established under the State Financial
Corporation Act, 1951 (63 of 1951) shall, on and from the appointed day, continue
to function in those areas in respect of which it was functioning immediately
before that day, subject to the provisions of this section and to such directions as
may, from time to time, be issued by the Central Government.
(2) Any directions issued by the Central Government under sub-section (1) in
respect of the Corporation may include a direction that the said Act, in its application
to the Corporation, shall have effect subject to such exceptions and modifications
as may be specified in the direction.
(3) Notwithstanding anything contained in sub-section (1 ) or sub-section (2),
the Board of Directors of the Corporation may, with the previous approval of the
Central Government and shall, if so required by the Central Government, convene
at any time after the appointed day a meeting for the consideration of a scheme for
the reconstitution or reorganisation or dissolution, as the case may be, of the
Corporation, incl~ding proposals regarding the formation of new Corporation,
and the transfer thereto of the assets, rights and liabilities of the existing Corporation,
and if such a scheme is approved at the general meeting by a resolution passed by
a majority of the shareholders present and voting, the scheme shall be submitted
to the Central Government for its sanction.
(4) If the scheme is sanctioned by the Central Government either without
modifications or with modifications which are approved at a general meeting, the
Central Government shall certify the scheme, and upon such certification, the
scheme shall, notwithstanding anything to the contrary contained in any law for
the time being in force, be binding on the corporations affected by the scheme as
well as the shareholders and creditors thereof.
(5) If the scheme is not so approved or sanctioned, the Central Government
may refer the scheme to such Judge of the High Court at Patna and Jharkhand as may
be nominated in this behalf by the Chief Justice thereof, and the decision of the Judge
in regard to the scheme shall be final and shall be binding on the corporations
affected by the scheme as well as the shareholders and creditors thereof.
22 The Bihar Reorganisation Act, 2000
(6) Nothing in the preceding provisions of this section shall be construed as
preventing the Government of the States of Bihar and Jharkhand from constituting,
at any time on or after the appointed day, a State Financial Corporation for that
State under the State Financial Corporations Act, 1951 (63 of 1951).
65. Provisions as to certain Companies
(1) Notwithstanding anything contained in the foregoing provisions of this
Part, each of the companies specified in the Ninth Schedule to this Act shall, on and
from the appointed day and until otherwise provided for in any law, or in any
agreement among the successor States, or in any direction issued by the Central
Government, continue to function in the areas in which it was functioning
immediately before that day; and the Central Government may, from time to time,
issue such directions in relation to such functioning as it may deem fit,
notwithstanding anything to the contrary contained in the Companies Act, 1956 (1
of 1956), or in any other law.
(2) Any directions issued under sub-section (1) in respect of a company
referred to in that sub-section, may include directions-
(a) regarding the division of the interests and shares of existing State of
Bihar in the company among the successor States;
(b) requiring the reconstitution of the Board of Directors of the company
so as to give adequate representation to both the successor States.
66. General provision as to statutory corporations
(1) Save as otherwise expressly provided by the foregoing provisions of this
Part, where any body corporate constituted under a Central Act, State Act or
Provincial Act for the existing State of Bihar or any part thereof has, by virtue of the
provisions of Part II of this Act; become an inter-State body corporate, then, the
body corporate shall, on and from the appointed day, continue to function and
operate in those areas in respect of which it was functioning and operating
immediately before that day, subject to such directions as may from time to time be
issued by the Central Government, until other provision is made by law in respect
of the said body corporate.
(2) Any directions issued by the Central Government under sub-section (1) in
respect of any such body corporate shall include a direction that any law by which
the said body corporate is governed shall, in its application to that body corporate
have effect subject to such exceptions and modifications as may be specified in the
direction.
67.Temporary provisions as to continuance of certain existing road transport
pennits
(1) Notwithstanding anything contained in section 88 of the Motor Vehicles
Act, 1988 (59 of 1988), a permit granted by the State Transport Authority of the
existing State of Bihar or any Regional Transport Authority in that State shall, if
such permit was, immediately before the appointed day, valid and effective in any
The Bihar Reorganisation Act, 2000 23
area in the transferred territory; 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 Jharkhand or any Regional
Transport Authority therein for the purpose of validating it for use in such area:
Proviried that the Central Government may; after consultation with the successor State Government or Governments concerned add to, amend or vary the conditions attached to the permit by the Authority by which the permit was granted.
(2) No tolls, entrance fees or other charges of a like nature shall be levied after
the appointed day in respect of any transport vehicle for its operations in any of the
successor States under any such permit, if such vehicle was, immediately before
that day, exempt from the payment of any such toll, entrance fees or other charges
for its operations in the transferred territory:
Provided that the Central Government may, after consultation with the State
Government or Governments concerned, authorise the levy of any such toll, entrance
fees or other charges, as the case may be.
68. Special provisions relating to retrenchment compensation in certain cases
Where on account of the reorganisation of the existing State of Bihar under
this Act, any body corporate constituted under a Central Act, State Act or Provincial
Act, any co-operative society registered under any law relating to co-operative
societies or any commercial or industrial undertaking of that State is reconstituted
or reorgani<;ed in any manner whatsoever or is amalgamated with any other body
corporate, co-operative society or undertaking, or is dissolved, and in consequence
of such reconstitution, reorganisation, amalgamation or dissolution, any workman
employed by such body corporate or in any such co-operative society or
undertaking, is transferred to, or re-employed by any other body corporate, or in
any other co-operative society or undertaking, then notwithstanding anything
contained in section 25F, 25FF or 25FFF of the Industrial Disputes Act, 1947 (14 of
1947), such transfer or re-employment shall not entitle him to any compensation
under that section:
Provided that-
(a) the terms and conditions of service applicable to the workman after
such transfer or re-employment are not less favourable to the workman
than those applicable to him immediately before the transfer or reemployment;
(b) the employer in relation to the body corporate, the co-operative society
or the undertaking where the workman transferred or re-employed is,
by agreement or otherwise, legally liable to pay to the workman, in the
event of his retrenchment, compensation under section 25F, 25FF or
25FFF of the Industrial Disputes Act, 1947 (14 of 1947) on the basis that
his service has been continuous and has not been interrupted by the
transfer or re-employment.
24 The Bihar Reorganisation Act, 2000
69.Special provision as to income-tax
Where the assets, rights and liabilities of any body corporate carrying on
business are, under the provisions of this Part, transfe:rred to any other bodies
corporate which after the transfer carryon the same business, the losses or profits
or gains sustained by the body corporate first mentioned which, but for such
transfer, would have been allowed to be carried forward and set off in accordance
with this provisions of Chapter VI of the Income-tax Act, 1961 (43 of 1961) shall be
apportioned amongst the transferee bodies corporate in accordance withth~ rules
to be made by the Central Government in this behalf and, upon such apportionment,
the shares of loss allotted to each transferee body corporate shall be dealt with in
accordance with the provisions of Chapter VI of the said Act, as if the transferee
body corporate had itself sustained such loss in a business carried on by it in the
years in which th~se losses were sustained.
70. Continuance of facilities in certain State institutions
(1) The Government of State of Bihar or Jharkhand, as the case may be, shall,
in respect of the institutions specified in the Tenth Schedule to this Act, located in
that State, continue to provide facilities to the people of the other State which shall
not, in any respect, be less favourable to such people than what were being
provided to them before the appointed day; for such period and upon such terms
and conditions as may be agreed upon between the two State Governments before
the 1st day of December, 2001 or if no agreement is reached by the said date as may
be fixed by order of the Central Government.
(2) The Central Government may, at any time before the 1st day of December,
2001 by notification in the Official Gazette, specify in the Tenth Schedule any other
institution existing on the appointed day in the States of Bihar and Jharkhand and
on the issue of such notification, the Schedule shall be deemed to be amended by
the inclusion of the said institution therein.