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THE BOMBAY RE-ORGANISATION ACT, 1960

Title : THE BOMBAY RE-ORGANISATION ACT, 1960

Year : 1960



The provisions of this Part shall apply in relation to the apportionment of the assets and liabilities of the State of Bombay immediately before the appointed day.



(1) Subject to the other provisions of this Part, all land and all stores, articles and other goods belonging to the State of Bombay shall,-

(a) If within the transferred territory, pass to the State of Gujarat; or

(b) In any other case, remain the property of the State of Maharashtra;

Provided that where the Central Government is of opinion that any goods or class of goods should be distributed otherwise that according to the situation of the goods the Central Government may issue such directions as it thinks fit for a just and equitable distribution of the goods and the goods shall remain the property of the State of Maharashtra or, as the case may be, pass to the State of Gujarat, accordingly.

(2) Any such stores of the State of Bombay as are referred to in the Tenth Schedule shall be divided between the States of Maharashtra and Gujarat in the manner specified therein.

(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.



The total of the cash balances in all treasuries of the State of Bombay and the credit balances of that State with the Reserve Bank of India, the State Bank of India and the State Bank of Saurashtra immediately before the appointed day shall be divided between the States of Maharashtra and Gujarat according to the population ratio;

Provided
that for the purposes of such division, there shall be no transfer of cash balances form any treasury to any other treasury and the apportionment shall be effected by adjusting the credit balances of the two States in the books of the Reserve Bank of India on the appointed day:

Provided further that if the State of Gujarat has no account no the appointed day with the Reserve Bank of India, the adjustment shall be made in such manner as the Central Government may, by order, direct.



The right to recover arrears of any tax or duty on property, including arrears of land revenue, shall belong to the State in which the property is situated, and the right to recover arrears of any other tax or duty shall belong to the State in whose territories the place of assessment of that tax or duty is included on the appointed day:

Provided that any sum recovered after the appointed day in respect of any arrears of tax accruing during the period between the 1st day of January, 1960, and the 30th day of April, 1960, (both days inclusive) under the Central Sales Tax Act, 1956 (74 of 1956), or the Bombay Sales Tax Act, 1959 (Form Act LI of 1959.), shall, after deducting the cost of collection thereof, be divided between the States of Maharashtra and Gujarat according to the population ratio.



(1) The right of the State of Bombay to recover any loans or advances made before the appointed day to any local body, society, agriculturist or other person in area within that State shall belong to the State in which that area is included on that day.

(2) The right of the State of Bombay to recover any loans or advances made before the appointed day to any person or institution outside that State shall belong to the State of Maharashtra;

Provided
that any sum recovered in respect of any such loan or advance shall be divided between the States of Maharashtra and Gujarat according to the population ratio.



(1) Out of the investments of the State of Bombay made before the appointed day in the cash balance investment account of the State such securities of the value of ten crores of rupees, as the Central Government may by order specify, shall pass to the State of Gujarat in connection with the construction of a capital for that State; and the remaining investments in the said account shall be divided between the States of Maharashtra and Gujarat according to the population ratio.

(2) The investments of the State of Bombay immediately before the appointed day in the State Famine Relief Fund, the State Road Fund, the Fund for Development Schemes, the Insurance Fund, the Bombay State Milk Fund, the Securities Adjustment Reserve Fund and any other general fund and the sums at the credit of that State in the Central Road Fund shall be divided between the States of Maharashtra and Gujarat according to the population ratio.

(3) The investments of the State of Bombay immediately before the appointed day in the Dangs District Reserve Fund, the Port Reserve Fund, the Port Development Fund and the Anand Institute Fund shall pass to the State of Gujarat and the investments in any other special fund the objects of which are confined to a local area shall belong to the State in which the area is included on the appointed day.

(4) The investments of the State of Bombay immediately before the appointed day in any private commercial or industrial undertaking, in so far as such investments have not been made or are deemed not to have been made from the cash balance investment account, shall pass to the State in which the principal seat of business of the undertaking is located.

(5) 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, the investment in, or loans or advances to any such body corporate by the State of Bombay made before the appointed day shall, save as otherwise expressly provided by or under this Act, be divided between the States of Maharashtra and Gujarat in the same proportion in which the assets of the body corporate are divided under the provisions of Part VII.



(1) Out of the investments in the cash balance investment account which remain with the State of Maharashtra after giving effect to the provisions of section 51, such securities of the value of 1,420 lakhs of rupees as the Central Government may by order specify shall stand transferred to the State of Gujarat.

(2) There shall be constituted in the State of Gujarat a Fund to be called the Special Revenue Reserve Fund consisting of the securities transferred to that State under sub-section (1) and such other securities belonging to the State of Gujarat of the value of 1,419 lakhs of rupees as the Central Government may be order specify.

(3) From and of the Fund constituted under sub-section (2), there shall be transferred as receipts in the revenue account of the State of Gujarat in each of the financial years specified in column 1 of the following Table a sum set out against that year in column 2 thereof, and in the financial year 1969-70, the balance, if any, remaining in the fund:-

TABLE

Financial year Amount in lakhs of rupees.

(1) (2)
1962-63 612
1963-64 585
1964-65 561
1965-66 526
1966-67 433
1967-68 340
1968-69 209



(1) The assets and liabilities relating to any commercial or industrial undertaking of the State of Bombay shall pass to the State in which the undertaking is located.

(2) Where a depreciation reserved fund is maintained by the State of Bombay for any such commercial or industrial undertaking, the securities held in respect of investments made from that fund shall pass to the State in which the undertaking is located.



(1) The public debt of the State of Bombay attributable to loans raised by the issue of Government securities and outstanding with the public immediately before the appointed day shall, as from that day, be the debt of the State of Maharashtra:

Provided that-

(a) The State of Gujarat shall be liable to apply to the State of Maharashtra its share of the sums due from time to time for the servicing and repayment of the debt; and

(b) For the purpose of determining the said share, the debt shall be deemed to be divided between the States of Maharashtra, and Gujarat as if it were a debt referred to in sub-section (2) or sub-section (3), as the case may be.

(2) The public debt of the State of Bombay attributable to loans taken from the Central Government, the National Co-operative Development and Warehousing Board or the Khadi and Village industries Commission or from any other source for the express purpose of re-lending the same to a specific institution and outstanding immediately before the appointed day shall,-

(a) If re-lent to any local body, body corporate or other institution in any local area, be the debt of the State in which the local area is included on the Appointed day; or

(b) If re-lent to the Bombay State Electricity Board, the Bombay State Road Transport Corporation, or the Bombay Housing Board or any other institution which becomes an inter-State institution on the appointed day, be divided between the State of Maharashtra and Gujarat in the same proportion in which the assets of such body corporate or institution are divided under the provision of Part VII.

(3) The remaining public debt of the State of Bombay attributable to loans taken from the central Government, the Reserve Bank of India or any other body corporate and outstanding immediately before the appointed day shall be divided between the States of Maharashtra and Gujarat in proportion to the total expenditure on all capital works and other capital outlays incurred to deemed to have been incurred up to the appointed day in the territories included respectively in each of those States.

Provided
that for the purposes of such division, only the expenditure on assets for which capital accounts have been kept shall be taken into account.

Explanation.- Where any expenditure on capital works or other capital outlays cannot be allocated between the territories included in the States of Maharashtra and Gujarat, such expenditure shall, for the purposes of this sub-section, be deemed to have been incurred in those territories according to the population ratio.

(4) Where a sinking fund or a depreciation fund is maintained by the State of Bombay for repayment of any lone raised by it, the securities held in respect of investments made from that fund shall be divided between the States of Maharashtra and Gujarat in the same proportion in which the total public debt is divided between the two States under this section.

Explanation.- For the purpose of this sub-section, the fund in the public account of the State of Bombay known as the Debt Redemption and Avoidance Fund shall be deemed to be a sinking fund.

(5) The share of the State of Gujarat in the liability on account of public debt apportioned under sub-section (3) shall be reduced by 1,419 lakhs of rupees and the share of the Share of the State of Maharashtra in such liability shall be correspondingly increased.

(6) In this section, the expression Government security means a security created and issued by a State Government for the purpose of raising a public lone and having any of the forms specified Act,1944 (18 of 1944).



The liability of the State of Bombay in respect of any floating debt of a Merged State shall be the liability of the State in whose territories the area of the Merged State is included on the appointed day.

(2) The liability of the State of Bombay in respect of any other floating loan to provide short-term finance to any commercial undertaking shall be the liability of the State in whose territories the undertaking is located.



The liability of the State of Bombay to refund any tax or duty on property, including land revenue, collected in excess shall be the liability of the State in which the property is situated, and the liability of the State of Bombay to refund any other tax or duty collected in excess shall be the liability of the State in whose territories the place of assessment of that tax or duty is included:

Provided that the liability to refund any amount after the appointed day on account of any excess collected in respect of any tax accruing during the period between the 1st day of January, 1960, and the 30th day of April, 1960 (both days inclusive) under the Central Sales Tax Act, 1956 (74 of 1956) or the Bombay ales Tax Act, 1959 (Bom.Act L1 of 1959.),shall be shared between the two States of Maharashtra and Gujarat according to the population ratio.



(1) The liability of the State of Bombay in respect of any civil deposit or local fund deposit shall, as from the appointed day.be the liability of the State in whose area the deposit has been made.

(2) The liability of the State of Bombay in respect in respect of any charitable or other endowment shall, as from the appointed day, be the liability of the State in whose area the institution entitled to the benefit of the endowment is located or of the State to which the objects of the endowment, under the terms thereof, are confined.



The liability of the State of Bombay 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 that Government servant is permanently allotted.



The liability of the State of Bombay in respect of pensions shall pass to, or be apportioned between, the State of Maharashtra and Gujarat in accordance with the provisions contained in the Eleventh Schedule.



(1) Where, before the appointed day, the State of Bombay 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, exclusively purposes of either the State of Maharashtra or the State of Gujarat, of that State; and

(b) In any other case, of the State of Maharashtra;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 the State of Bombay, be rights or liabilities of the State of Maharashtra or the State of Gujarat, as the case may be:

Provided that in any such case as is referred to in clause (b), 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 State of Maharashtra and the State of Gujarat, or, in default of such agreement, as the Central Government may be 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.



Where, immediately before the appointed day, the State of Bombay is subject to any liability in respect of any actionable wrong other than breach of contract, that liability shall,-

(a) If the case of action arose wholly within the territories which, as from that day, are the territories of the State of Maharashtra or the State of Gujarat, be a liability of that State: and

(b) In any other case, be initially a liability of the State of Maharashtra, but subject to such financial adjustment as may be agreed upon between the States of Maharashtra and Gujarat or, in default of such agreement, as the Central Government may by order direct.



Where, immediately before the appointed day, the State of Bombay is liable as guarantor in respect of any liability of a registered co-operative society or other person, that liability shall,-

(a) If the area of operation of such society of person is limited to the territories which, as from that day, are the territories of the State of Maharashtra or of the State of Gujarat, be a liability of that State and

(b) In any other case, be initially a liability of the State of Maharashtra, subject to such financial adjustment as may be agreed upon between the States of Maharashtra and Gujarat or, in default of such agreement, as the Central Government may be order direct.



In 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 the provisions.



The benefit or burden of any asset or liability of the State of Bombay not dealt with in the foregoing provisions of the Part shall pass to the State of Maharashtra in the first instance, subject to such financial adjustment as may be agreed upon between the States of Maharashtra and Gujarat before the 1st day of April, 1961, or, in default of such agreement, as the Central Government may be order direct.



Where the State of Maharashtra and Gujarat agree that the benefit or burden of any particular asset or liability should be apportioned between them in a manner other than that provided for in the foregoing provisions of this Part, then, notwithstanding anything contained therein, the benefit or burden of that asset or liability shall be apportioned in the manner agreed upon.



Where, by virtue of any of the provisions of this Part, any of the States of Maharashtra and Gujarat 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 be either of the States.is of opinion that it is just and equitable that the 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 manner between the two States, or the other State shall made to the State subject to the liability such contribution in respect thereof, as the Central Government may, after consultation with the two State Government, by order determine.



All sums payable either by the State of Maharashtra or by the State of Gujarat to the other State or by the Central Government to either of those States, by virtue of the provisions of this Act, shall be charged on the Consolidated Fund of the State by which such sums are payable or, as the case may be, the Consolidated Fund of India.

Last updated on April, 2016

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