Section 54(1) in The Bombay Reorganisation Act, 1960
(1)The public debt of the State of Bombay attributable to loans raised by the issue of Government securities and outstanding with the public immediately before the appointed day shall, as from that day, be the debt of the State of Maharashtra:Provided that-(a)the State of Gujarat shall be liable to apply to the State of Maharashtra its share of the sums due from time to time for the servicing and repayment of the debt; and(b)for the purpose of determining the said share, the debt shall be deemed to be divided between the States of Maharashtra, and Gujarat as if it were a debt referred to in sub-section (2) or sub-section (3), as the case may be.
