BOARD TO ASSUME OBLIGATIONS OF STATE GOVERNMENT IN RESPECT OF MATTERS TO WHICH THIS ACT APPLIES.

(1) All debts and obligations incurred, all contracts entered into and all matters and things engaged to be done by, with or for the State Government for any of the purposes of this Act before the first constitution of the Board shall be deemed to have been incurred, entered into or engaged to be done by, With or for the Board; and all suits or other legal proceedings instituted or which might but for the issue of the notification under sub-section (4) of Sec. I have been instituted by or against the State Government may be continued or instituted by or against the Board. (1-A) All schemes sanctioned by the State Government and transferred to the Board shall, for the purposes of this Act, be deemed to have been sanctioned by the Board. (2) All expenditure which the State Government may, not later than one year after the first constitution of the Board, declare to have been incurred on capital account in connection with the purposes of this Act shall be deemed to be a loan advanced to the Board under Sec. 64 on the date of the said declaration, and all the assets acquired by such expenditure shall thereupon vest in the Board.