22. Land and goods.—(1) Subject to the other provisions of this Part, all land and all stores, articles
and other goods in the transferred territories belonging to the State of Bihar shall, as from the appointed
day, pass to the State of West Bengal.
(2) Any unissued stores of any class in Bihar shall be divided between West Bengal and Bihar in
proportion to the total indents for stores of that class made in the period of three years ending with the
31st day of March, 1956 for the transferred territories and for the rest of Bihar.
Provided that nothing in this sub-section shall apply to stores held for specific purposes such as use or
utilisation in particular institutions, workshops or undertakings or on particular works under construction.
(3) In this section, the expression “land” includes immovable property of every kind and any rights in
or over such property and the expression “goods” does not include coins, bank notes and currency notes.
23. Treasury and bank balances.—The total of the cash balances in all treasuries of Bihar and the
credit balances of Bihar with the Reserve Bank of India immediately before the appointed day shall be
divided between that State and West Bengal 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 he effected by adjusting the credit balances of
Bihar and West Bengal in the books of the Reserve Bank of India on the appointed day.
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24. Arrears of taxes.—The right of Bihar to recover arrears of any tax or duty on property situate in
the transferred territories, including land revenue, shall belong to West Bengal and the right of Bihar to
recover arrears of any other tax or duty in any case where the place of assessment of that tax or duty is in
the transferred territories shall also belong to West Bengal.
25. Right to recover loans and advances.—The right to recover any loans or advances made before
the appointed day by Bihar to any local body, society, agriculturist or other person in the transferred
territories shall belong to West Bengal.
26. Credits in certain funds.—The investments in the cash balance investments account, the famine
relief fund and the general fund of Bihar and the sums at the credit of Bihar in the central road fund shall
be divided between Bihar and West Bengal according to the population ratio; and the investments in any
special fund the objects of which are confined to the transferred territories or any part thereof shall pass to
West Bengal.
27. Assets and liabilities of State undertakings.—(1) The assets and liabilities relating to any
commercial or industrial undertaking of Bihar located in the transferred territories shall pass to West
Bengal.
(2) Where a depreciation reserve fund is maintained by Bihar for any such commercial or industrial
undertaking, the securities held in respect of investments made from that fund shall also pass to West
Bengal.
28. Public debt.—(1) The public debt of Bihar attributable to loans raised by the issue of
Government securities and outstanding with the public immediately before the appointed day shall
continue to be the debt of Bihar:
Provided that—
(a) West Bengal shall be liable to pay to Bihar a share of the sums due from time to time for the
servicing and repayment of the public debt; and
(b) for the purpose of determining the said share, the said debt shall be deemed to be divided
between Bihar and West Bengal as if it were a debt referred to in sub-section (2).
(2) The public debt of Bihar attributable to loans taken from the Central Government, the Reserve
Bank of India or any other bank before the appointed day shall be divided between Bihar and West
Bengal in proportion to the total expenditure on all capital works and other capital outlays incurred up to
the appointed day in the territories of Bihar excluding the transferred territories and in the transferred
territories, respectively:
Provided that for the purposes of such division, only expenditure on assets for which capital accounts
have been kept shall be taken into account.
(3) Where a sinking fund or depreciation fund is maintained by Bihar for the repayment for any loan
raised by it, the securities held in respect of investments made from that fund shall be divided between
Bihar and West Bengal in the same proportion as the public debt referred to in sub-section (2).
(4) In this section, the expression “Government security means a security created and issued for the
purpose of raising a public loan and having any of the forms specified or prescribed under clause (2) of
section 2 of the Public Debt Act, 1944 (18 of 1944).
29. Refund of taxes collected in excess.—The liability of Bihar to refund any tax or duty on property
situate in the transferred territories, including land revenue, collected in excess shall be the liability of
West Bengal and the liability of Bihar to refund any other tax or duty collected in excess in any case
where the place of assessment of that tax or duty is in the transferred territories shall also be the liability
of West Bengal.
30. Deposits.—The liability of Bihar in respect of any civil deposit or local fund deposit made in the
transferred territories shall, as from the appointed day, be the liability of West Bengal.
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31. Provident Funds.—The liability of Bihar in respect of the provident fund account of any
Government servant who, being in service on the appointed day, is permanently allotted to West Bengal
shall, as from that day, be the liability of West Bengal.
32. Pensions.—The liability of Bihar in respect of pensions shall be apportioned between that State
and West Bengal in accordance with the provisions contained in the Schedule.
33. Contracts.—(1) Where, before the appointed day, the State of Bihar has made any contract in the
exercise of its executive power for any purposes of the State that contract shall be deemed to have been
made in the exercise of the executive power—
(a) of Bihar, if the purposes of the contract are, as from the appointed day, exclusively purposes
of that State;
(b) of West Bengal, if the purposes of the contract are, as from that day, exclusively purposes of
that State; and
(c) of Bihar, in any other case;
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 Bihar, be rights or liabilities of Bihar or of
West Bengal, as the case may be:
Provided that in any such case as is referred to in clause (c), the initial allocation of rights and
liabilities made by this sub-section shall be subject to such financial adjustment as may be agreed upon
between the two States, 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, and bank
balances and securities shall, notwithstanding that they partake of the nature of contractual rights, be dealt
with under those provisions.
34. Liability in respect of actionable wrong.—Where, immediately before the appointed day, Bihar
is subject to any liability in respect of actionable wrong other than breach of contract, that liability
shall,—
(a) if the cause of action arose wholly within the transferred territories, be a liability of West
Bengal;
(b) if the cause of action arose wholly within the territories of Bihar excluding the transferred
territories, be a liability of Bihar; and
(c) in any other case, be initially a liability of Bihar, but subject to such financial adjustment as
may be agreed upon between that State and West Bengal, or in default of such agreement, as the
Central Government may by order direct.
35. Liability as guarantor of co-operative societies.—Where, immediately before the appointed
day, Bihar is liable as guarantor in respect of any liability of a registered co-operative society, that
liability shall—
(a) if the area of the society's operations is limited to the transferred territories, be a liability of
West Bengal; and
(b) in any other case, continue to be a liability of Bihar.
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36. 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.
37. Power of the Central Government to order allocation or adjustment in certain cases.—
Where either Bihar or West Bengal becomes entitled to any property or obtains any benefits or becomes
subject to any liability and the Central Government, on a reference made within a period of three years
from the appointed day by either of the States, is of opinion that it is just and equitable that that property
or those benefits should be transferred to, or shared with, the other State or that a contribution towards
that liability should be made by the other State, the said property or benefits shall be allocated in such
manner between the two States, or the other State shall make to the State subject to the liability of such
contribution in respect thereof, as the Central Government may, after consultation with the two State
Governments, by order determine.
38. Certain expenditure to be charged on the Consolidated Fund.—All sums payable by either
Bihar or West Bengal to the other State by virtue of the provisions of this Part shall be charged on the
Consolidated Fund of the State by which such sums are payable.