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G.Rama Mohan Rao & Anr vs The Government Of Andhra Pradesh, Rep, ... on 7 March, 2017

51. As explained in G.Rama Mohan Rao Vs. Government of Andhra Pradesh8 by a Division Bench of this Court in the context of the provisions of the Act, the Parliament was conscious that the assets and liabilities of the existing bodies corporate would, after bifurcation, be transferred to other bodies corporate carrying on the same business. In view of the language used in Section 74 of the Act, the legislative intent was not for the assets and liabilities of the entities in the IX Schedule to be transferred to the successor State Governments, but for its apportionment between the two successor States, and for such assets and liabilities to be utilized by the bodies corporate to be created by the successor States. The Bench rejected the contention that the legislative intent was for the assets and liabilities of the IX Schedule entities to be apportioned only between the Governments of Telangana and Andhra Pradesh and observed that if such were to be the intention, one would have to presume that the Parliament intended to bring to an end the existing corporations and that they should cease to carry on operations after the appointed date, and for the assets and liabilities of these entities including the employees of the Corporations/Companies to be apportioned only between both the State Governments. It held that such a construction would not find support from a plain reading of the provisions of the 2014 Act and that it was not the legislative intent. In observed in para 130 as under:
Andhra HC (Pre-Telangana) Cites 228 - Cited by 25 - R Ranganathan - Full Document
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