PART XII CHAPTER III PROPERTY,CONTRACTS,RIGHTS,LIABILITIES,OBLIGATIONS AND SUITS 295. Succession to property, assets, rights, liabilities and obligations in other cases.- (1) As from the commencement of this
Constitution- (a) all property and assets which immediately before such commencement
were vested in any Indian State corresponding to a State specified in
Part B of the First Schedule shall vest in the Union, if the purposes
for which such property and assets were held immediately before such
commencement will thereafter be purposes of the Union relating to any
of the matters enumerated in the Union List, and (b) all rights, liabilities and obligations of the Government of any
Indian State corresponding to a State specified in Part B of the First
Schedule, whether arising out of any contract or otherwise, shall be
the rights, liabilities and obligations of the Government of India, if
the purposes for which such rights were acquired or liabilities or
obligations were incurred before such commencement will thereafter be
purposes of the Government of India relating to any of the matters
enumerated in the Union List, subject to any agreement entered into in that behalf by the Government
of India with the Government of that State. (2) Subject as aforesaid, the Government of each State specified in
Part B of the First Schedule shall, as from the commencement of this
Constitution, be the successor of the Government of the corresponding
Indian State as regards all property and assets and all rights,
liabilities and obligations, whether arising out of any contract or
otherwise, other than those referred to in clause (1).
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