53. Provisions as to certain Corporations.—(1) The following bodies corporate constituted for the
existing State of Assam, namely:—
(a) the State Electricity Board constituted under the Electricity (Supply) Act, 1948 (54 of 1948);
and
(b) the State Warehousing Corporation established under the Warehousing Corporations Act, 1962
(58 of 1962),
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 may 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.
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(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, the expiry of a period of 1
[thirty-eight months] from the appointed day
or such earlier 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 in such manner as may be
agreed upon among 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.
(4) Nothing in the preceding provisions of this section shall be construed as preventing the
Government of any of the successor States from constituting at any time on or after the appointed day, a
State Electricity Board or a State Warehousing Corporation for that State under the provisions of the Act
relating to such Board or Corporation; and if such a Board or a Corporation is so constituted in any of the
successor 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 employees 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 sub-section (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 employees 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 sub-section (3) 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 58, also for the terms and conditions of service applicable to such
employees after such transfer or re-employment.
54. 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, 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 fit, to the State Government or other authority
concerned for the maintenance, so far as practicable, of the previous arrangement.
55. Provisions as to Assam State Financial Corporation.—(1) The Assam State Financial
Corporation established under the State Financial Corporations 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.
1. Subs. by Act 3 of 1975, s. 2, for “three years” (w.e.f. 20-1-1975).
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(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,
including proposals regarding the formation of new Corporations, and the transfer thereto of the assets,
rights and liabilities of the existing Corporation, and if such a scheme is approved at a 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 common High Court 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.
(6) Nothing in the preceding provisions of this section shall be construed as preventing the
Government of the State of Meghalaya from constituting, at any time after the appointed day and with the
approval of the Central Government, a State Financial Corporation for that State under the State Financial
Corporations Act, 1951 (63 of 1951).
56. General provisions 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 Assam or any part thereof has, by virtue of the provisions of
Part II, 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 may 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.
57. Temporary provisions as to 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 or a Regional Transport Authority in the existing State of Assam
shall, if such permit was, immediately before the appointed day, valid and effective in any area therein, 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 any State or Regional Transport Authority for the purpose of validating it for use in such
area:
Provided that the Central Government may, after consultation with the 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 tolls, entrance fees or
other charges for its operations within the existing State of Assam:
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Provided that the Central Government may, after consultation with the State Government or
Governments concerned, authorise the levy of any such tolls, entrance fees or other charges, as the case
may be.
58. Special provision relating to retrenchment compensation in certain cases.—Where, on account
of the reorganisation of the existing State of Assam 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
reorganised 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 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 re-employment; and
(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.
59. Special provisions as to income-tax.—Where the assets, rights and liabilities of anybody
corporate carrying on business are, under the provisions of this Part, transferred to any other bodies
corporate which after the transfer carry on 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 the provisions of Chapter VI of the Income-tax Act, 1961
(43 of 1961), shall be apportioned amongst the transferee bodies corporate in accordance with the rules to
be made by the Central Government in this behalf and, upon such appointnment, the share 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 these losses were sustained.
60. Continuance of facilities in certain State institutions.—(1) The Government of the State of
Assam or Meghalaya or, as the case may be, the Central Government in relation to the Union territory of
Mizoram shall, in respect of the institutions specified in the Seventh Schedule located in that State or
Union territory, continue to provide facilities to any other Government aforesaid and the people of the
States and Union territory aforesaid which shall not, in any respect, be less favourable to such Government
and people than what were being provided to them before the appointed day, for such period and upon
such terms and conditions (including those relating to any contributions to be made for the provision of
such facilities) as may be agreed upon between the said Governments before the expiry of a period of one
year from the appointed day or, if no agreement is reached before such expiry, as may be fixed by order of
the Central Government.
(2) The Central Government may at any time before the expiry of a period of one year from the
appointed day, by notification in the Official Gazette, specify in the Seventh Schedule any other institution
existing on the appointed day in the said States and Union territory and on the issue of such notification,
the said Schedule shall be deemed to be amended by the inclusion of the said institution therein.