Section 32(1) in The Andhra Pradesh And Madras (Alteration Of Boundaries) Act, 1959
(1)Where, before the appointed day, the State of Andhra Pradesh or Madras has made any contract in the exercise of its executive power for any purposes of the State, that contract shall be deemed to have been made in the exercise of the executive power,--(a)if such purposes are, as from that day, purposes relatable exclusively to the transferred territories, of the State to which the territories are transferred; and(b)in any other case, of the State which made the contract; and all rights and liabilities which have accrued, or may accrue, under any such contract shall, to the extent to which they are rights or liabilities of the State which made the contract, be rights or liabilities of the State specified in clause (a) or clause (b) above.
