Section 1358 in The Inter-State Corporations Act, 1957
1358.
As a result of the States Reorganisation Act, 1956, a number of corporate bodies constituted under State Acts before the commencement of that Act (i.e., the 1st November 1956) for the purposes of individual States found themselves transformed into inter-State corporations on that date. To meet the situation, it was provided in section 109 of the State Reorganisation Act that such a corporation shall continue to function and operate in those areas in respect of which it was functioning an operating immediately before 1st November 1956, subject to the directions of the Central Government, until other provision is made by law in respect of that corporation. This was only intended to be a transitional provision.2. It is proposed in this Bill to make a general provision for the reorganisation of any such inter-State corporation as one or more inter-Stae corporations at the instance of any of the State Governments concerned in that corporation. The State Government would frame a scheme for the purpose providing for the division of the assets and liabilities of the corporation the transfer or re-employment of its employees and other incidental matters. The Central Government after consulting the other State Government concerned would give effect to the scheme by making a comprehensive order and notifying it in the Official Gazette.3. Eleven State Acts are specified in the Schedule to the Bill on the basis of information supplied by the State Governments. Since it is possible that this list may not be completed, it is proposed in clause 5 of the Bill to empower the Central Government to include in the Schedule by means of a notification any other State Act under which a corporate body is now functioning in more than one State as a result of the States Reorganisation Act." - Gazette of India, 1957, Extra., Pt. II, Section 2, p. 400.[20th September, 1957.]An Act to provide for the reorganisation of certain corporations functioning in two or more States by virtue of section 109 of the States Reorganisation Act, 1956 [or of any other enactment relating to reorganisation of States] [Inserted by Act 11 of 1960, Section 75], and for matters connected therewith.BE it enacted by Parliament in the Eighth Year of the Republic of India as follows:--
