34. Definition.—In this Part “Union purposes” means the purposes of Government relatable to any of
the matters mentioned in List I in the Seventh Schedule to the Constitution.
35. Land and goods.—(1) Subject to the other provisions of this Part, all land and all stores, articles
and other goods held immediately before the appointed day, by the Union for the purposes of the
governance of the existing Union territory, shall, on and from that day, pass to the State of Goa, unless
any such land, stores, articles or goods are situate in the districts of Daman and Diu of the existing Union
territory or are held for Union purposes:
Provided that where the Central Government is of the opinion that any goods or class of goods should
be distributed otherwise than according to the situation of the goods, the Central Government may issue
such directions as it thinks fit for a just and equitable distribution of the goods.
(2) The stores held for specific purposes, such as use or utilisation in particular institutions,
workshops or undertakings or on particular works under construction, shall be retained by the Union if
such institution, workshop, undertaking or work is situated in the districts of Daman and Diu of the
existing Union territory.
(3) In this section, the expression “land” includes immovable property of every kind and any rights in
or over such property.
36. Cash balances.—The total of the cash balances in all treasuries, the Reserve Bank of India, the
State Bank of India and any nationalised bank, of the existing Union territory immediately before the
appointed day shall be divided between the State of Goa and the Union according to the population ratio:
Provided that for the purposes of such division, there shall be no transfer of cash balances from any
treasury to any other treasury and the apportionment shall be effected by adjusting the balances in the
books of the Reserve Bank of India.
Explanation.—In this section, “balance” includes a debit balance.
37. Arrears of taxes.—(1) The right to recover arrears of any tax or duty (including arrears of land
revenue) on any property situated in the district of Goa of the existing Union territory shall belong to the
State of Goa.
(2) The right to recover arrears of any tax or duty, other than a tax or duty specified in sub-section (1),
shall belong to the State of Goa if the place of assessment of that tax or duty is included in the district of
Goa of the existing Union territory.
38. Right to recover loans and advances.—The right to recover any loans or advances made by the
Union before the appointed day to any local body, society, agriculturist or other person in the district of
Goa of the existing Union territory shall belong to the State of Goa:
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Provided that right to recover loans or advances of pay and travelling allowance to a Government
servant made before the appointed day by the Administrator shall pass to the State of Goa if such
Government servant is allotted to that State.
39. Investments in and loans, etc., to certain corporate bodies.—Where any body corporate
constituted under a Central Act or a State Act for the existing Union territory, or any part thereof, has, by
virtue of the provisions of Part II, become an inter-State body corporate, the investments in, or loans or
advances to any such body by the Union made before the appointed day shall be divided between the
State of Goa and the Union in such manner as may be agreed between them before the expiration of one
year from the appointed day, or in default of such agreement in such manner as the Central Government
may, by order, direct.
40. Assets and liabilities of State undertakings.—The assets and liabilities relating to any
commercial undertaking of the existing Union territory shall,—
(a) if the undertaking is located in the district of Goa of the existing Union territory, pass to the
State of Goa;
(b) if the undertaking is located in the district of Goa, as well as the districts of Daman and Diu,
of the existing Union territory, be divided in such manner as may be agreed upon between the State of
Goa and the Union before the expiration of one year from the appointed day, or in default of such
agreement, as the Central Government may, by order, direct.
41. Refund of taxes collected in excess.—The liability of the Union to refund—
(a) any tax or duty on property, including land revenue collected in excess shall go to the State of
Goa if the property is situated in the district of Goa of the existing Union territory;
(b) any other tax or duty collected in excess shall go to the State of Goa if the place of assessment
of that tax or duty is included in the district of Goa of the existing Union territory.
42. Certain deposits.—The liability of the Union in respect of any civil deposit or local fund shall,
on and from the appointed day, be the liability of the State of Goa, if the deposit has been made in the
district of Goa of the existing Union territory.
43. Provident fund.—(1) The liability of the Union in respect of the provident fund account of a
Government servant employed in connection with the administration of the existing Union territory and in
service on the appointed day shall, on and from that day, be the liability of the State of Goa if that
Government servant is permanently allotted to that State.
(2) The liability of the Union in respect of the provident fund account of a Government servant
employed in connection with the administration of the existing Union territory who has retired from
service before the appointed day shall be the liability of the State of Goa in the first instance and shall be
adjusted between the State of Goa and the Union according to the population ratio.
44. Pensions granted by the Administrator, etc.—(1) Subject to the adjustments mentioned in
sub-section (4), the State of Goa shall, in respect of pensions granted before the appointed day by the
Administrator, pay the pensions drawn in the treasuries in the Goa district of the existing Union territory.
(2) Subject to the adjustments mentioned in sub-section (4), the liability in respect of pensions of
Government servants employed in connection with the affairs of the existing Union territory who retire or
proceed on leave preparatory to retirement before the appointed day but whose claims for pensions are
outstanding immediately before that day, shall be the liability of the State of Goa.
(3) The liability of the Union in respect of pensions granted before the appointed day by the
Administrator and drawn in any treasury outside the existing Union territory shall be the liability of the
State of Goa subject to adjustments to be made in accordance with sub-section (4), as if such pensions had
been drawn in the treasuries referred to in sub-section (1).
(4) In respect of the period commencing on the appointed day and ending on the 31st day of March,
1988, and in respect of each subsequent financial year, the total payments made by the State of Goa in
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respect of pensions referred to in sub-section (1) and sub-section (2) shall be apportioned between the
State of Goa and the Union in the population ratio.
(5) The liability in respect of the pension of any Government servant employed immediately before
the appointed day in connection with the affairs of the existing Union territory and retiring on or after that
day, shall be that of the State of Goa or the Union, as the case may be, but the portion of the pension in
respect of the period of service of any such Government servant before the appointed day shall be
apportioned between the State of Goa and the Union in the population ratio.
(6) Any reference in this section to a pension shall be construed as including a reference to the
commuted value of the pension.
45. Contracts.—(1) Where before the appointed day, the Union has made any contract in the exercise
of its executive power for any purposes of the existing Union territory that contract shall be deemed to
have been made in the exercise of the executive power of the State of Goa,—
(a) if the purposes of the contract are, on and from the appointed day, exclusively purposes of that
State; and
(b) if the purposes of the contract are, on and from that day, not exclusively purposes of any area
in the districts of Daman and Diu of the existing Union territory,
and all rights and liabilities which have accrued, or may accrue, under any such contract shall, to the
extent to which they would have been rights or liabilities of the Union, be rights or liabilities of the State
of Goa:
Provided that in any such case as is referred to in clause (b), the initial allocation of rights and
liabilities made by this sub-section shall be subject to such financial adjustments as may be agreed upon
between the State of Goa and the Union or in default of such agreement, as the Central Government may,
by order, direct.
(2) For the purposes of this section, there shall be deemed to be included in the liabilities which have
accrued or may accrue under any contract—
(a) any liability to satisfy an order or award made by any court or other tribunal in proceedings
relating to the contract; and
(b) any liability in respect of expenses incurred in, or in connection with, any such proceedings.
(3) This section shall have effect subject to the other provisions of this Part relating to the
apportionment of liabilities in respect of loans, guarantees and other financial obligations.
46. Liability in respect of actionable wrong.—Where, immediately before the appointed day, the
Union in connection with the governance of the existing Union territory is subject to any liability in
respect of an actionable wrong, other than breach of contract, that liability shall,—
(a) if the cause of action arose wholly within the district of Goa of the existing Union territory, be
a liability of the State of Goa; and
(b) in any other case, be initially a liability of the State of Goa but subject to such financial
adjustments as may be agreed upon between the State of Goa and the Union, or in default of such
agreement, as the Central Government may, by order, direct.
47. Liability as guarantor of co-operative societies.—Where, immediately before the appointed
day, the Union in connection with the governance of the existing Union territory is liable as guarantor in
respect of any liability of a registered co-operative society or other person, that liability of the Union shall
be a liability of the State of Goa—
(a) if the area of the operations of such society or person is limited to the territories in the district
of Goa of the existing Union territory; and
(b) if the area of the operations of such society or person extends to the whole of the existing
Union territory:
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Provided that in any such case as is referred to in clause (b), the initial allocation of liabilities under
this section shall be subject to such financial adjustments as may be agreed upon between the State of Goa
and the Union or in default of such agreement, as the Central Government may, by order, direct.
48. Items in suspense.—If any item in suspense is ultimately found to affect an asset or liability of
the nature referred to in any of the foregoing provisions of this Part, it shall be dealt with in accordance
with that provision.
49. Residuary provision.—The benefit or burden of any assets or liabilities of the Union in
connection with the governance of the existing Union territory not dealt with in the foregoing provisions
of this Part shall be retained by the Union for the purposes of the governance of the Union territory of
Daman and Diu.
50. Apportionment of assets or liabilities by agreement.—Where the State of Goa and the Union
agree that the benefit or burden of any particular asset or liability should be apportioned between them in
a manner other than that provided for in the foregoing provisions of this Part, then, notwithstanding
anything contained therein, the benefit or burden of that asset or liability shall be apportioned in the
manner agreed upon.
51. Power of Central Government to order allocation or adjustment in certain cases.—Where,
by virtue of any of the provisions of this Part, the Union becomes entitled to any property or obtains any
benefits or the State of Goa becomes subject to any liability, and the Central Government is of opinion on
a reference made within a period of three years from the appointed day by the State of Goa that it is just
and equitable that that property or those benefits should be transferred to, or shared with, the State of Goa
or that a contribution towards that liability should be made by the Union the said property or benefits
shall be allocated in such manner, or the Union shall make to the State of Goa such contribution in respect
thereof, as the Central Government may, after consultation with the Government of the State of Goa by
order, determine.