The States Reorganisation Act,1956
Section 95. Passing of certain assets and liabilities of the Union to successor Sates
Subject to the other provisions of this Part-
(a) Such of the assets of the Union within an existing State as are immediately before the appointed day held by the Union for purposes of the governance of that State shall, as from that day, pass to the successor State, unless the purposes for which the assets are so held are Union purposes; and
(b) All liabilities of the Union arising out of, or in relation to, the governance of an existing State shall, as from the appointed day, be liabilities of the successor State, unless the liabilities are relatable to a Union purpose.
