Chapter V PROPERTY AND CONTRACTS

Transfer of assets and liabilities of Government to the Board.—As from the appointed day, in relation to any port,—

1. (a) all property, assets and funds and all rights to levy rates vested in the Government for the purposes of the port immediately before such day, shall vest in the Board;
2. (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 Government immediately before such day, for or in connection with the purposes of the ports, shall be deemed to have been incurred, entered into and engaged to be done by, with or for, the Board;
3. (c) all non-recurring expenditures incurred by the Government for or in connection with the purposes of the ports up to such day and declared to be capital expenditure by the Government shall be treated as the capital provided by the Government to the Board;
4. (d) all rates, fees, rents and other sums of money due to the Government in relation to the ports, immediately before such day, shall be deemed to be due to the Board;
5. (e) all suits and other legal proceedings instituted by or against the Government immediately before such day for any matter in relation to ports may be continued by or against the Board;
6. (f) every employee serving under the Government immediately before such day solely or mainly for or in connection with the affairs of non-major ports shall become an employee of the Board, and shall hold his office or service therein by the same tenure and upon the same terms and conditions of service as he should 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 conditions of service are duly altered by the Board by regulations: Provided that the tenure, remuneration and terms and conditions of service of any such employee shall not be altered to his disadvantage without the previous sanction of the Government. Explanation.—For the purpose of this section other than the proviso, the term "Government" means the Directorate of Ports.

Transfer of employees of the port offices and the Directorate of Ports to the Board.—Save as otherwise provided in this Act, the officers and other employees of the port offices and of the Directorate of Ports shall, on and from the appointed day, become the officers and employees of the Board and shall hold office by the same tenure and upon the same remuneration and terms and conditions of service, and with the same right and privileges as to pension, gratuity and other matters as would have been admissible to them, if the same had not been transferred to the Board, and shall continue to do so unless and until their employment under the Board is duly terminated or until his tenure, remuneration or terms and conditions of service are duly altered by the Board by regulations.

Transfer of accumulation in provident fund and other like funds.—The sums standing to the credit of the provident fund accounts and to the superannuation funds and other like funds, if any, of the persons referred to in section 17 shall be transferred to the Board by the port offices or the Directorate of Ports and the liability in respect of the said funds, shall be the liability of the Board.

Existing rates etc., to continue until altered by the Board.—As from the appointed day, all rates, fees and other charges in relation to any port shall unless and until altered by the Board as per the provisions of this Act, continue to be levied and collected, at the same rate at which they were being levied and collected by the Government before such day.

Repayment of capital with interest.—The Board shall repay, at each intervals and on such terms and conditions as the Government may determine, the amount which is treated under clause (c) of section 16 as capital provided by the Government, with interest at such rates as may be fixed by the Government and such repayment of capital or payment of interest shall be deemed to be part of the expenditure of the Board.

Procedure when land cannot be acquired by agreement. — Where any land is required for the purposes of the Board, the Government may, at the request of the Board, procure the acquisition thereof under the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Central Act 30 of 2013) 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.

Contracts by the Board. — With respect to the making of contracts by the Board for the purposes of this Act, the following provisions shall apply, namely: —

1. (a) every contract shall be made on behalf of the Board by the Chief Executive Officer or an officer authorised by the Board;
2. (b) no contract for the acquisition of sale of immovable property or for the lease or licence of any such property for a term exceeding thirty years, shall be made unless it is previously approved by the Government, on such terms and conditions as it may think fit;
3. (c) no contract for leasing or licensing waterfront, jetty, waterway and corresponding infrastructural facilities thereof for a term exceeding five years shall be made unless it is previously approved by the Government, on such terms and conditions as it may think fit;
4. (d) the form and the manner of executing contracts on behalf of the Board shall be such as may be prescribed;
5. (e) no contract which is not made in accordance with the provisions of this Act and the rules or the regulations made thereunder shall be binding on the Board.