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THE ANDHRA PRADESH AND MADRAS (ALTERATION OF BOUNDARIES) ACT, 1959

Title : THE ANDHRA PRADESH AND MADRAS (ALTERATION OF BOUNDARIES) ACT, 1959

Year : 1959



(1) Subject to the other provisions of this Part, all land and all stores, articles and other goods, including cash balances in all treasuries in the territories specified in the First Schedule or the Second Schedule shall, as from the appointed day, pass to the State to which the territories are transferred.

(2) In this section, the expression "land" includes immovable property of every kind and any rights in or over such property.



The right of Andhra Pradesh or Madras to recover arrears of any tax or duty on property situate in the transferred territories, including land revenue, or 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 belong to the State to which the territories are transferred.



The right to recover any loans or advances made before the appointed day by Andhra Pradesh or Madras to any local body, society, agriculturist or other person in the transferred territories shall belong to the State to which the territories are transferred.



The liability of Andhra Pradesh or Madras to refund any tax or duty on property situate in the transferred territories, including land revenue, collected in excess shall be the liability of the State to which the territories are transferred, and the liability of Andhra Pradesh or Madras 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 the State to which those territories are transferred.



The liability of Andhra Pradesh or Madras 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 the State to which the territories are transferred.



The liability of Andhra Pradesh or Madras in respect of the provident fund account of a Government servant in service on the appointed day shall, as from that day, be the liability of the State to which the Government servant is permanently allotted.



The liability of Andhra Pradesh or Madras in respect of pensions shall be apportioned between those States in such manner as may be agreed upon between them or, in default of such agreement, in such manner as the President may, by notified order, specify having regard to the transfer of territories effected by this Act and the principles underlying the provisions of the Fifth Schedule to the States Reorganisation Act, 1956 (37 of 1956.).



(1) Where, before the appointed day, the State of Andhra Pradesh or Madras 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) If such purposes are, as from that day, purposes relatable exclusively to the transferred territories, of the State to which the territories are transferred; and

(b) In any other case, of the State which made the contract;and all rights and liabilities which have accrued, or may accrue, under any such contract shall, to the extent to which they are rights or liabilities of the State which made the contract, be rights or liabilities of the State specified in clause (a) or clause (b) above.

(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.



Where, immediately before the appointed day, the State of Andhra Pradesh or Madras 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 transferred territories, be a liability of the State to which they are transferred; and

(b) In any other case, continue to be a liability of the State which, immediately before that day, was subject to such liability.



Where, immediately before the appointed day, the State of Andhra Pradesh or Madras 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 the State to which the territories are transferred; and

(b) In any other case, continue to be a liability of the State which, immediately before that day, was subject to such liability.



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.



Whether either Andhra Pradesh or Madras 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 such contribution in respect thereof, as the Central Government may, after consultation with the two State Governments, by order determine.



All sums payable by either Andhra Pradesh or Madras 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.
Last updated on September, 2016

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