Chapter IV PROPERTY AND CONTRACTS

(1) As from the appointed day, in relation to any port, (a) all property, assets and funds and all rights to levy rates vested in the State Government for the purposes of the port immediately before such day, shall vest in the Board; (b) all debts, obligations and liabilities incurred, all contracts entered into, and all matters and things engaged to be done by with or for the State Government immediately before such day, for or in connection with the purposes of the port shall be deemed to have been incurred, entered into and engaged to be done by, with, or for the Board; (c) all non-recurring expenditure incurred by the State Government for or in connection with purposes of the port upto such day and declared to be capital expenditure by the State Government shall be treated as the capital provided by the State Government to the Board (who shall repay the same at intervals and on terms and conditions as may be determined by the State Government); (d) all rates, fees, rents and other sums of money due to the State (e) all suits and other legal proceedings instituted by or against the State Government immediately before such day for any matter in relation to port, may be continued by or against the Board; (f) every employee serving under the State Government immediately before such day solely or mainly for or in connection with the affairs of the minor port shall become an employee of the Board, shall hold his office or service therein by the same tenure and upon the same terms and conditions of service as he would have held the same if the Board had not been established and shall continue to do so unless and until his employment in the board is terminated or until his tenure, remuneration or terms and condition of service are duly altered by the Board: Provided that the tenure, remuneretion and terms and conditions of service of any such employee shall not be altered to his disadvantage without the previous sanction of the State Government. (2) Notwithstanding anything contained in the Industrial Disputes Act, 1947, or in any other law for the time being in force, the transfer of the services of any employee under this section to the Board shall not entitle such employee to any compensation under that Act or other law, and no such claim shall be entertained by any Court, Tribunal or other authority.

The Board shall repay at such intervals and on such terms and conditions as the State Government may determine the amount which is treated under clause (c) of sub section (1) of section 20 as capital provided by the State Government, with interest at such rate as may be fixed by the State Government and such repayment of capital or payment of interest shall be deemed to be a part of the expenditure of the Board.

The State Government may levy waterfront royalty on the basis of per ton cargo handled at minor ports which are under administration, control and management of the Beard, at such rate as the State Government may, by notification in the Official Gazette, fix and shall be payable to the State Government by the Board for the utilization of the State waterfront and such payment shall be deemed to be a part of the expenditure of the Board.

Where any immovable property is required for the purposes of the Board, the State Government may, at the request of the Board, procure the acquisition thereof under the provisions of the Land Acquisition Act, 1894, and on payment by the Board of the compensation awarded under that Act and of the charges incurred by the Government in connection with the proceedings, the land shall vest in the Board.

With respect to the making of contracts by the Board for the purposes of this Act. the following provisions shall have effect, namely :- (a) Every contract shall be made on behalf of the Board by the Chief Exequtive Officer or an officer authorised by the Board. (b) (i) No contract in respect of leasing of waterfront, jetty, waterway and corresponding infrastructural facilities thereof for a term exceding five years shall be made unless it is previously approved by the State Government, on such terms and conditions as it may think fit. (ii) Suject to sub-clause (i) of this clause, no contract for acquisition or sale of immovable property or for the lease of any such property for a term exceeding thirty years shall be made unless it is previously approved by the State Government, on such terms and conditions as it may think fit (c) The form and manner of executing contract on behalf of the Board shall be such as may be prescribed by rules. (d) No contract which is not made in accordance with the provisions of this Act and the rules shall be binding on the Board.