Where, immediately before the appointed day, an existing State is subject to any liability in respect of an actionable wrong other than breach of contract, that liability shall--(a)if there be only one successor State, be a liability of that State;(b)if there be two or more successor States and the cause of action arose wholly within the territories which as from that day are the territories of one of them, be a liability of that successor State; and(c)in any other case, be initially a liability of the principal successor State, but subject to such financial adjustment as may be agreed upon between all the successor States concerned, or in default of such agreement, as the Central Government may by order direct. 89. Liability as guarantor of co-operative society 89. Liability as guarantor of co-operative society. Where, immediately before the appointed day, an existing State is liable as guarantor in respect of any liability of a registered co-operative society, that lability of the existing State shall--(a)if there be only one successor State, be a liability of that State;(b)if there be two or more successor States and the area of the society's operations is limited to the territories which as from that day are the territories of one of them, be a liability of that successor State; and(c)in any other case, be a liability of the principal successor State:Provided that in any such case as is referred to in clause (c), the initial allocation of liabilities under this section shall be subject to such financial adjustment as may be agreed upon between all the successor States, or in default of such agreement, as the Central Government may by order direct.
