Report No. 249
7. Provisions as to certain State corporations/boards and provisions as to employees in State services
These provisions State that State Electricity Boards and Warehousing Corporations were to continue to function in those areas where they were functioning immediately before reorganisation. The Inter-State Corporations Act, 1957 is now in force which provides for the reorganisation of certain State corporations functioning in two or more States by virtue of Section 109 of the States Reorganisation Act, 1956 or any other enactment relating to reorganisation of States.
Provisions of both the reorganisation acts and the Inter-State Corporations Act are still invoked to settle disputes that arise with regard to corporations functioning in two or more States. Hence, these provisions cannot be repealed. With regard to persons employed in State services, these Acts provided that persons employed in the services of the erstwhile State would, after reorganisation, come to be employed in the services of the newly formed State.
While the purpose of the Act insofar this clause is concerned has been fulfilled, provisions of this nature are still invoked in the settlement of service disputes, and pending litigation would be affected by repeal of provisions of this nature. Hence, these provisions cannot be repealed.