The State of Mizoram Act,1986
Section 31. Property, assets, rights, liabilities, obligations, etc
(1) All such property and assets within the existing Union territory of Mizoram as are held immediately before the appointed day by the Union for purposes of governance of that Union territory shall, on and from that day, pass to the State of Mizoram unless the purposes for which such property and assets are so held are Union purposes:
Provided that the cash balances in the treasuries in the Union territory of Mizoram before the appointed day shall, as from that day, vest in the State of Mizoram.
(2) All rights, liabilities and obligations (other than those relatable to, or in connecting with, a Union purpose), whether arising out of any contract or otherwise, which are, immediately before the appointed day,-
(a) The rights, liabilities and obligations of the Capital Government arising out of, or in connection with, the governance of the Union territory of Mizoram; or
(b) The rights, liabilities and obligations of the Administrator of the existing Union territory of Mizoram in his capacity as such, or of the Government of that Union territory.
Shall, on and from the appointed day, be the rights, liabilities and obligations of the Government of the State of Mizoram.
(3) The right to recover arrears of-
(a) Any tax or duty being a tax or duty enumerated in the State List in the Seventh Schedule to the Constitution; or
(b) Any duty referred to in article 268; or
(c) Any-tax under the Capital Sales Tax Act,1956 (74 of 1956),
Which have fallen due in the existing Union territory of Mizoram shall pass to the State of Mizoram.
(4) The provisions of this section shall not apply to or in relation to,-
(a) Any institution, undertaking or project the expenditure in relation to which is immediately before the appointed day, met from and out of the Consolidated Fund of India;
(b) Any property which has been placed by the Union at the disposal of the administration of the existing Union territory of Mizoram subject to the condition that the ownership thereof will continue to vest in the Union.
For the purposes of this section-
(a) “Liability” includes liability in respect of any civil deposit, local fund deposit, charitable or other endowment, provided fun account, pension or actionable wrong;
(b) “Union purposes” means the purpose of Government relatable to any of the matters mentioned in the Union List.