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101. Contracts.-

(1) Any contract made before the appointed day by the Union in the exercise of its executive power for purposes of the governance of an existing State shall, as from that day, be deemed to have been made in the exercise of the executive power of the successor State, unless the purposes of the contract are Union purposes; 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 and liabilities of the Union if this Act had not been passed, be rights and liabilities of the successor State.

(2) The provisions of sub-sections (2) and (3) of section 87 shall apply in relation to any such contract as they apply in relation to a contract to which sub-section (1) of that section applies.

States Reorganisation Act, 1956 Back

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