68. Provisions as to Bombay State Electricity Board and State Warehousing
Corporation.—(1) The following bodies corporate constituted for the State of Bombay, 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 Agricultural Produce (Development
and Warehousing) Corporations Act, 1956 (28 of 1956),
shall, as 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, the 1st day of October, 1960, 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 State of Maharashtra and the State of Gujarat 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.
(4) Nothing in the preceding provisions of this section shall be construed as preventing the
Government of the State of Maharashtra or, as the case may be, the Government of the State of Gujarat
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 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, 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.
69. 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 proper to the State Government or other authority
concerned for the maintenance, so far as practicable, of the previous arrangement.
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70. Provisions as to Bombay State Financial Corporation.—(1) The Bombay State Financial
Corporation established under the State Financial Corporations Act, 1951 (63 of 1951) shall, as 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 shall 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) A general meeting of the Corporation shall be convened, in accordance with the rules to be made
in this behalf by the Central Government, by the Board thereof before the 31st day of July, 1960, or
within such further time as the Central Government may allow, 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 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 Bombay 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 Gujarat 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).
71. Amendment of Act 64 of 1950.—In the Road Transport Corporations Act, 1950,—
(1) in section 47A,—
(a) in sub-section (1),—
(i) for the words, letters and figures, “the whole or any part of a State in respect of which
a Corporation was, immediately before the 1st day of November, 1956,” the words “or any
other enactment relating to reorganisation of States, the whole or any part of a State in respect
of which a Corporation was, immediately before the day on which the reorganisation takes
place,” shall be substituted;
(ii) in the Explanation, for clause (i), the following clause shall be substituted, namely:—
“(i) in relation to the Bombay State Road Transport Corporation, shall mean
the Government of the State of Maharashtra or of Gujarat as formed under the
Bombay Reorganisation Act, 1960;”;
(b) in sub-section (3), in clause (f), after the words and figures "the States Reorganisation Act,
1956”, the words “or any other enactment relating to reorganisation of States" shall be inserted;
(2) after section 47A, the following section shall be inserted, namely:—
“48. Transitional provision relating to Bombay State Road Transport
Corporation.—Notwithstanding anything contained in section 47A, it shall be lawful for the
Government of the State of Bombay to frame a scheme under sub-section (1) thereof and forward
the same to the Central Government before the 1st day of May, 1960, and in such a case, the
power conferred on the Central Government to make an order under sub-section (2) thereof may
be exercised before that day but no order so made shall take effect till that day.”.
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72. Special provision for Bar Council of Gujarat.—(1) In the Indian Bar Councils
Act, 1926 (38 of 1926),—
(a) in section 4,—
(i) to sub-section (2), the following Explanation shall be added, namely: —
“Explanation.—For the purpose of election to the Bar Council for the High Court of
Gujarat, the period of ten years aforesaid shall be computed after taking into account the
period for which the person concerned was entitled as of right to practise in the High Court of
Bombay or of Saurashtra or in the Judicial Commissioner's Court of Kutch before the 1st day
of May, 1960.”;
(ii) for the proviso to sub-section (4), the following proviso shall be substituted, namely:—
“Provided that the Advocates-General of West Bengal, Madras, Maharashtra and Gujarat
shall be Chairmen ex-officio, respectively, of the Bar Councils constituted for the
High Courts of those States.”;
(b) after section 5, the following section shall be inserted, namely:—
“5A. Ad hoc Bar Council for Gujarat High Court.—Notwithstanding anything contained
in this Act, the Chief Justice of the High Court of Gujarat shall nominate the members of the first
Bar Council under this Act for the High Court of Gujarat and the members so nominated shall
remain in office for a period of twelve months.”.
(2) The assets and liabilities of the Bar Council for the High Court of Bombay shall be divided
between the Bar Councils for the High Court at Bombay and the High Court of Gujarat in such manner as
may be agreed upon, and in default of such agreement, as may be directed by the Attorney-General for
India.
73. Amendment of Act 6 of 1942.—In the Multi-unit Co-operative Societies Act, 1942, after
section 5B, the following section shall be inserted, namely:—
“5C. Transitional provision relating to certain multi-unit cooperative societies.—(1) Where,
in respect of any co-operative society specified in the Twelfth Schedule, which under the provisions
of sub-section (1) of section 5A becomes a multi-unit co-operative society, the Board of Directors
unanimously adopts any scheme for the reconstitution, reorganisation or dissolution of the society,
including proposals for the formation of new co-operative societies and the transfer thereto of the
assets and liabilities and employees of that society and the State Government of Bombay certifies the
scheme at any time before the 1st day of May, 1960, then notwithstanding anything contained in
sub-section (2) or sub-section (3) or sub-section (4) of the said section or any other law, regulation or
bye-law for the time being in force in relation to that society, the scheme so certified shall be binding
on all societies affected by the scheme, as well as the shareholders, creditors and employees of all
such societies, subject to such financial adjustments as may be directed in this behalf under
sub-section (3), but no such scheme shall be given effect to before the said day.
(2) When a scheme in respect of a co-operative society is so certified, the Central Registrar shall
place the scheme at a meeting, held in such manner as may be prescribed by rules made under this Act, of
all the persons who, immediately before the date of certification of the scheme, were members of the
society and the scheme may be approved by a resolution passed by a majority of the members present and
voting at the said meeting.
(3) If the scheme is not so approved or is approved with modifications, the Central Registrar may
refer the scheme to such Judge of the High Court at Bombay as may be nominated in this behalf by the
Chief Justice thereof and the Judge may direct such financial adjustments to be made among the societies
affected as he deems necessary, and the scheme shall be deemed to be approved subject to those financial
adjustments.
(4) If in consequence of the directions given under sub-section (3), a society becomes liable to pay
any sum of money, the State within whose area the society is located shall be liable as guarantor in
respect of the payment of such money.”.
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74. 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 State of Bombay or any part thereof has, by virtue of the provisions of Part II,
become an inter-State body corporate, then, the body corporate shall, as 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.
75. Amendment of Act 38 of 1957.—In the Inter-State Corporations Act, 1957, in the preamble, in
section 2, in clause (f) of sub-section (2) of section 4 and in section 5, after the words and figures “the
States Reorganisation Act, 1956”, wherever they occur, the words “or of any other enactment relating to
reorganisation of States” shall be inserted.
76. 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 Transport Authority of Bombay or any Regional
Transport Authority in that State shall, if such permit was, immediately before the appointed day, valid
and effective in any 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
Gujarat or any Regional Transport Authority therein for the purpose of validating it for use in such area:
Provided that the Central Government may, after consultation with the State Governments of
Maharashtra and Gujarat, 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 the State of Gujarat 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 Governments of
Maharashtra and Gujarat, authorise the levy of any such toll, entrance fees or other charges, as the case
may be.
77. Special provision relating to retrenchment compensation in certain cases.—Where on
account of the reorganisation of the State of Bombay 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 in any such co-operative
society or undertaking, is transferred to, or re-employed by any other body corporate, or in any other cooperative society or undertaking, then notwithstanding anything contained in section 25F 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;
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(b) the employer in relation to the body corporate, the cooperative society or the undertaking
where the workman is 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 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.
78. Special provision as to income-tax.—Where the assets, rights and liabilities of any body
corporate carrying on any 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 of 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 section 24 of the Indian Income-tax
Act, 1922 (11 of 1922), 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 apportionment, the share of
loss allotted to each transferee body corporate shall be dealt with in accordance with the provisions of
section 24 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.
79. Continuance of facilities in certain State institutions.—(1) The Government of the State of
Maharashtra or, as the case may be, the Government of the State of Gujarat shall, in respect of the
institutions specified in the Thirteenth Schedule 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 October, 1960, 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 October, 1960, by notification in
the Official Gazette, specify in the Thirteenth Schedule any other institution existing on the appointed day
in the State of Maharashtra or of Gujarat, and on the issue of such notification, the Schedule shall be
deemed to be amended by the inclusion of the said institution therein.