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Section 106 – The States Reorganisation Act,1956

The States Reorganisation Act,1956

Section 106. Provisions as to certain State Electricity Boards and apportionment of their assets and liabilities

(1) The State Electricity Board constituted under the Electricity (Supply) Act,1948 (54 of 1948), for any of the existing States of Bombay, Madhya Pradesh and Saurashtra shall as 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.

(2) Any directions issued by the Central Government under sub-section (1) in respect of any such Board shall include a direction that the said Act shall in its application to that Board have effect subject to such exceptions and modifications as the Central Government thinks fit.

(3) A State Electricity Board continued under sub-section (1) shall cease to function as from, and shall be deemed to be dissolve on, the 1st day of November,1957, or such earlier date as the Central Government may by order appoint; and upon such dissolution, its assets and liabilities shall,-

(a) In the case of the Board for Saurashtra, pass to the State of Bombay, and

(b) In the case of the Board for the existing State of Bombay or Madhya Pradesh, be apportioned between the successor States in such manner as may be agreed upon between them within one year of the dissolution of the Board or if no agreement is reached, in such manner as the Central Government may by order determine.

(4) Nothing in the preceding provisions of this section shall be construed as preventing the Government of any of the successor States to the existing States of Bombay, Madhya Pradesh and Saurashtra from constituting at any time after the appointed day a State Electricity Board for that successor State under the provisions of the said Act; and if such a Board is so constituted before the dissolution of a Board continued under sub-section (1) and functioning in any part of that successor State,-

(a) Provision may be made by order of the Central Government enabling the new Board to take over from the existing Board all or any of its undertakings, assets and liabilities in that State, and

(b) Upon the dissolution of the existing Board, any assets and liabilities which would otherwise have passed to the successor State by or under the provisions of sub-section (3) shall pass to the new Board instead of to the successor State.

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The States Reorganisation Act,1956

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