Section 10 in The Madhya Pradesh State Warehousing Corporation (Apportionment of assets, rights and liabilities) Order, 2006
10. Joint Reserve Fund.
- In order to meet the known or unknown liabilities of the Corporation, an amount to be mutually agreed by the States of Madhya Pradesh and Chattisgarh may be set aside out of the divisible cash/bank balance as joint reserve fund; and the State of Madhya Pradesh shall operate this fund in consultation with the State of Chattisgarh and maintain the accounts thereof. The State of Chattisgarh shall reimburse share of the liabilities of the Corporation to the State of Madhya Pradesh which may arise in the final division of assets and liabilities in accordance with this Order, if joint reserve fund is not sufficient to discharge these liabilities.Explanatory MemorandumUnder sub-section (3) of section 58 of the Madhya Pradesh Reorganisation Act, 2000, the assets, rights and liabilities of the erstwhile Madhya Pradesh Warehousing Corporation were required to be apportioned between the successor States, in such manner as may be agreed among them on dissolution of the Corporation or if no agreement is reached, in such manner as the Central Government may by Order determine. The erstwhile Madhya Pradesh Warehousing Corporation stood dissolved on the 1st day of October, 2002. The successor States of Madhya Pradesh and Chattisgarh have, however, come to an agreement upon the apportionment of assets, rights and liabilities on the 22nd April, 2002. Accordingly, the Central Government are issuing the Order and have decided to give effect to the provisions contained in this order from 1st April, 2003 in terms of the provisions of sub-section (3) of section 58 of the Act. The interests of any party are not prejudicially affected by the proposed retrospective effect.
