57. Certain expenditure to be charged on Consolidated Fund.—
All sums payable either by the
State of Madhya Pradesh or by the State of Chhattisgarh to the other States 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.
PART VII
PROVISIONS AS TO CERTAIN CORPORATIONS
58. Provisions as to Madhya Pradesh Electricity Board, State Road Transport Corporation and
State Warehousing Corporation, etc.—
(1) The following bodies corporate constituted for the existing
State of Madhya Pradesh, namely:—
(a) the State Electricity Board constituted under the Electricity Supply Act, 1948 (54 of 1948);
(b) the State Road Transport Corporation established under the Road Transport Corporations Act,
1950 (64 of 1950); and
(c) the State Warehousing Corporation established under the Warehousing Corporations Act,
1962 (58 of 1962),
shall, on and 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 arrangements for the
functioning of such body corporates as may be mutually agreed upon between the successor States failing
which 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 such date as the Central Government may, by order, appoint; and upon
such dissolution, its assets, rights and liabilities shall be apportioned between the successor States of
Madhya Pradesh and Chhattisgarh in such manner as may be agreed upon between them within one year
15
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:
Provided that any liabilities of the said Board relating to the unpaid dues of the coal supplied to the
Board by any public sector coal company shall be provisionally apportioned between the successor
organisations constituted respectively in the successor States of the existing State of Madhya Pradesh or
after the date appointed for the dissolution of the Board under this sub-section in such manner as may be
agreed upon between the Governments of the successor States within one month of such dissolution or if
no agreement is reached, in such manner as the Central Government may, by order, determine subject to
reconciliation and finalisation of the liabilities which shall be completed within three months from the
date of such dissolution by the mutual agreement between the successor States or failing such agreement
by the direction of the Central Government:
Provided further that an interest at the rate of two per cent. higher than the Cash Credit interest shall
be paid on outstanding unpaid dues of the coal supplied to the Board by the public sector coal company
till the liquidation of such dues by the concerned successor organisations constituted in the successor
States on or after the date appointed for the dissolution of the Board under this sub-section.
(4) Nothing in the preceding provisions of this section shall be construed as preventing the
Government of the State of Madhya Pradesh or, as the case may be, the Government of the State of
Chhattisgarh from constituting, at any time on or after the appointed day, a State Electricity Board or a
State Road Transport Corporation or a State Warehousing Corporation for the 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 form the existing Board or Corporation all or any of its undertakings,
assets, rights and liabilities in that State, and
(b) upon the dissolution of existing Board or Corporation,—
(i) 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;
(ii) any employee who would otherwise have been transferred to or re-employed by that State
under sub-section
(3), read with clause
(i) of sub-section
(5), shall be transferred to or
re-employed by the new Board or the new Corporation instead of to or by that State.
(5) An agreement entered into between the successor States under sub-section
(3) and an order made
by the Central Government under that sub-section or under clause
(a) of sub-section
(4) may provide for
the transfer or re-employment of any employee of the Board or the Corporation referred to in sub-section
(1),—
(i) to or by the successor States, in the case of an agreement under sub-section
(4) or an order
made under that sub-section;
(ii) to or by the new Board or the new Corporation constituted, under sub-section
(4), in the case
of an order made under clause
(a) of that sub-section,
and subject to the provisions of section 64, also for the terms and conditions of service applicable to such
employees after such transfer or re-employment.
59. Provisions as to Madhya Pradesh State Financial Corporation.—
(1) The Madhya Pradesh
State Financial Corporation established under the State Financial Corporation Act, 1951 (63 of 1951)
shall, on and 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 after consultation with the Governments of
the successor States.
(2) Any directions issued by the Central Government under sub-section
(1) in respect of the
Corporation may 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) Notwithstanding anything contained in sub-section
(1) or sub-section
(2), the Board of Directors
of the Corporation may, with the previous approval of the Central Government and shall, if so required by
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the Central Government, convene at any time after the appointed day a meeting 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 of Madhya Pradesh 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 Madhya Pradesh and Chhattisgarh from constituting, at any time on or after
the appointed day, a State Financial Corporation for that State under the State Financial Corporation Act,
1951 (63 of 1951).
60. Provisions as to certain companies.—
(1) Notwithstanding anything contained in the foregoing
provisions of this Part, each of the companies specified in the Seventh Schedule to this Act shall, on and
from the appointed day and until otherwise provided for in any law, or in any agreement among the
successor States, or in any direction issued by the Central Government, continue to function in the areas
in which it was functioning immediately before that day; and the Central Government may, after
consultation with the Governments of the successor States, from time to time issue such directions in
relation to such functioning as it may deem fit, notwithstanding anything to the contrary contained in the
Companies Act, 1956 (1 of 1956) or in any other law.
(2) Any directions issued under sub-section
(1), in respect of a company referred to in that sub-
section, may include directions—
(a) regarding the division of the interests and shares of existing State of Madhya Pradesh in the
company among the successor States;
(b) requiring the reconstitution of the Board of Directors of the company so as to give adequate
representation to both the successor States.
61. Functioning of organisation, registered society or trust incorporated on behest of State
Government.—
(1) Notwithstanding anything contained in the foregoing provisions of this Part or any
other law for the time being in force, any organisation, registered society or trust, incorporated at the
behest of the State Government, shall, on and from the appointed day, and until otherwise provided for in
any law for the time being in force, or in any agreement between the successor States, or in any direction
issued by the Central Government in consultation with the successor States, continue to function in the
areas in which it was functioning immediately before that day, and the Central Government may, after
consulting the Governments of successor States, issue directions in relation to such functioning.
(2) Any directions issued under sub-section
(1) may include directions regarding the—
(i) reconstitution of the Board of Directors of the organisation, society or trust by whatever name
it may be called; or
(ii) appointment of the Chief Executive by whatever name it may be called; or
(iii) regulations or bye-laws, by whatever name they may be called; or
(iv) assessment and apportionment of financial support, if any, provided by the existing State of
Madhya Pradesh for meeting fixed charges.
62. General provisions 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 Provincia1 Act for the existing State of Madhya Pradesh or any part thereof has, by virtue of the
provisions of Part II of this Act, become an inter-State body corporate, then, the body corporate shall, on
and from the appointed day, continue to function and operate in those areas in respect of which it was
17
functioning and operating immediately before that day, subject to such directions as may from time to
time be issued by the Central Government, after consultation with the Governments of the successor
States, 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.
63. Temporary provisions as to continuance of certain existing road transport permits.—
(1)
Notwithstanding anything contained in section 88 of the Motor Vehicles Act, 1988 (59 of 1988), a permit
granted by the State Transport Authority of the existing State of Madhya Pradesh 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
Chhattisgarh 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 successor State Government or
Governments concerned 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 any transport vehicle for its operations in any of the successor States 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 Government or
Governments concerned, authorise the levy of any such toll, entrance fees or other charges, as the case
may be.
64. Special provisions relating to retrenchment compensation in certain cases.—Where on
account of the reorganisation of the existing State of Madhya Pradesh 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 co-operative society or undertaking, then notwithstanding anything contained in section 25F,
section 25FF or section 25FFF 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;
(b) the employer in relation to the body corporate, the co-operative 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, section 25FF or
section 25FFF 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.
65. Special provisions 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 or 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 Chapter VI of the Income-tax Act, 1961 (43 of
1961), 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 Chapter VI of the
18
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.
66. Continuance of facilities in certain State institutions.—
(1) The Government of State of
Madhya Pradesh or Chhattisgarh, as the case may be, shall, in respect of the institutions specified in the
Eighth Schedule to this Act, 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 within a period of one year from the appointed day or if no
agreement is reached within the said period of one year, then, as may be fixed by order of the Central
Government.
(2) The Central Government may, at any time within a period of one year from the appointed day, by
notification in the Official Gazette, specify in the Eighth Schedule any other institution existing on the
appointed day in the States of Madhya Pradesh and Chhattisgarh and on the issue of such notification, the
Schedule shall be deemed to be amended by the inclusion of the said institution therein.
PART VIII
PROVISIONS AS TO SERVICES
67. Provisions relating to All India Services.—
(1) In this section, the expression “State cadre”,—
(a) in relation to the Indian Administrative Service, has the meaning assigned to it in the Indian
Administrative Service (Cadre) Rules, 1954;
(b) in relation to the Indian Police Service, has the meaning assigned to it in the Indian Police
Service (Cadre) Rules, 1954;
(c) in relation to the Indian Forest Service, has the meaning assigned to it in the Indian Forest
Service (Cadre) Rules, 1966.
(2) In place of the cadres of the Indian Administrative Service, Indian Police Service and Indian
Forest Service for the existing State of Madhya Pradesh, there shall, on and from the appointed day, be
two separate cadres, one for the State of Madhya Pradesh and the other for the State of Chhattisgarh in
respect of each of these services.
(3) The initial strength and composition of the State cadres referred to in sub-section
(2) shall be such
as the Central Government may, by order, determine before the appointed day.
(4) The members of each of the said service borne on the Madhya Pradesh cadre thereof immediately
before the appointed day shall be allocated to the State cadres of the same service constituted under
sub-section
(2) in such manner and with effect from such date or dates as the Central Government may,
by order, specify.
(5) Nothing in this section shall be deemed to affect the operation, on or after the appointed day, of
the All-India Service Act, 1951 (61 of 1951) or the rules made thereunder.
68. Provisions relating to services in Madhya Pradesh and Chhattisgarh.—
(1) Every person who
immediately before the appointed day is serving in connection with the affairs of the existing State of
Madhya Pradesh shall, on and from that day provisionally continue to serve in connection with the affairs
of the State of Madhya Pradesh unless he is required, by general or special order of the Central
Government to serve provisionally in connection with the affairs of the State of Chhattisgarh:
Provided that no direction shall be issued under this section after the expiry of a period of one year
from the appointed day.
(2) As soon as may be after the appointed day, the Central Government shall, by general or special
order, determine the successor State to which every person referred to in sub-section
(1) shall be finally
allotted for service and the date with effect from which such allotment shall take effect or be deemed to
have taken effect.
(3) Every person who is finally allotted under the provisions of sub-section
(2) to a successor State
shall, if he is not already serving therein be made available for serving in the successor State from such
date as may be agreed upon between the Governments concerned or in default of such agreement, as may
be determined by the Central Government.
69. Provisions relating to other services.—
(1) Nothing in this section or section 68 shall be deemed
to affect on or after the appointed day the operation of the provisions of Chapter I of Part XIV of the
19
Constitution in relation to determination of the conditions of service of persons serving in connection with
the affairs of the Union or any State:
Provided that the conditions of service applicable immediately before the appointed day in the case of
any person deemed to have been allocated to the State of Madhya Pradesh or to the State of Chhattisgarh
under section 68 shall not be varied to his disadvantage except with the previous approval of the Central
Government.
(2) All services prior to the appointed day rendered by a person—
(a) if he is deemed to have been allocated to any State under section 68, shall be deemed to have
been rendered in connection with the affairs of that State;
(b) if he is deemed to have been allocated to the Union in connection with the administration of
the Chhattisgarh shall be deemed to have been rendered in connection with the affairs of the Union,
for the purposes of the rules regulating his conditions of service.
(3) The provisions of section 68, shall not apply in relation to members of any All-India Service.
70. Provisions as to continuance of officers in same post.—
(1) Every person who, immediately
before the appointed day is holding or discharging duties of any post or office in connection with the
affairs of the existing State of Madhya Pradesh in any area which on that day falls within any of the
successor States shall continue to hold the same post or office in that successor State, and shall be
deemed, on and from that day, to have been duly appointed to the post or office by the Government of, or
any other appropriate authority in, that successor State:
Provided that nothing in this section shall be deemed to prevent a competent authority, on and from
the appointed day, from passing in relation to such person any order affecting the continuance in such
post or office.
71. Advisory Committees.—The Central Government may, by order establish one or more Advisory
Committees for the purpose of assisting it in regard to—
(a) the discharge of any of its functions under this Part; and
(b) the ensuring of fair and equitable treatment to all persons affected by the provisions of this
Part and the proper consideration of any representations made by such persons.
72. Power of Central Government to give directions.—The Central Government may, give such
directions to the State Government of Madhya Pradesh and the State Government of Chhattisgarh as may
appear to it to be necessary for the purpose of giving effect to the foregoing provisions of this Part and the
State Governments shall comply with such directions.
73. Provisions as to State Public Service Commission.—
(1) The Public Service Commission for
the existing State of Madhya Pradesh shall, on and from the appointed day, be the Public Service
Commission for the State of Madhya Pradesh.
(2) The persons holding office immediately before the appointed day as Chairman or other member of
the Public Service Commission for the existing State of Madhya Pradesh shall, as from the appointed day,
be the Chairman or, as the case may be, the other member of the Public Service Commission for the State
of Madhya Pradesh.
(3) Every person who becomes Chairman or other member of the Public Service Commission for the
State of Madhya Pradesh on the appointed day under sub-section
(2), shall—
(a) be entitled to receive from the Government of the State of Madhya Pradesh conditions of
service not less favourable than those to which he was entitled under the provisions applicable to him;
(b) subject to the proviso to clause
(2) of article 316, hold office or continue to hold office until
the expiration of his term of office as determined under the provisions applicable to him immediately
before the appointed day.
(4) The report of the Madhya Pradesh Public Service Commission as to the work done by the
Commission in respect of any period prior to the appointed day shall be presented under clause
(2) of
article 323 to the Governors of the States of Madhya Pradesh and Chhattisgarh, and the Governor of the
State of Madhya Pradesh shall, on receipt of such report, cause a copy thereof together with a
memorandum explaining as far as possible, as respects the cases, if any, where the advice of the
20
Commission was not accepted, the reasons for such non-acceptance to be laid before the Legislature of
the State of Madhya Pradesh and it shall not be necessary to cause such report or any such memorandum
to be laid before the Legislative Assembly of the State of Chhattisgarh.
74. Jurisdiction of the Commissions, Authorities and Tribunals.—
(1) Notwithstanding anything
contained in any law for the time being in force, every Commission, Authority, Tribunal, University,
Board or any other body constituted under a Central Act, State Act or Provincial Act and having
jurisdiction over the existing State of Madhya Pradesh shall on and from the appointed day continue to
function in the successor State of Madhya Pradesh and also exercise jurisdiction as existed before the
appointed day over the State of Chhattisgarh for a maximum period of two years from the appointed day
or till such period as is decided by mutual agreement between the successor States—
(i) to continue such body as a joint body for the successor States; or
(ii) to abolish it, on the expiry of that period, for either of the successor States; or
(iii) to constitute a separate Commission, Authority, Tribunal, University, Board or any other
body, as the case may be, for the State of Chhattisgarh,
whichever is earlier.
(2) No suit or other legal proceeding shall be instituted, in case such body is abolished under
clause (ii) of sub-section
(1), by any employee of such body against the termination of his appointment or
for the enforcement of any service conditions or for securing absorption in alternative public employment
against the Central Government or any of the successor States.
(3) Notwithstanding anything contained in any law for the time being in force or in any judgment,
decree or order of any court or Tribunal or contract or agreement, any Chairman or member of any body
abolished under clause (ii) of sub-section
(1) shall not be entitled to any compensation for the unexpired
period of his tenure.
(4) Notwithstanding anything contained in this section or any law for the time being in force, the
Central Government, shall, in accordance with any mutual agreement between the successor States or if
there is no such agreement, after consultation with the Governments of the successor States, issue
directions for the resolution of any matter r
