Authority to assume obligations in respect of matters to which this Act applies for water works taken over from local bodies.

21. 1[Authority] to assume obligations in respect of matters to which this Act applies for water works taken over from local bodies.- In respect of water works taken over from a local body by 2[the Authority], all debts and obligations incurred, all contracts entered into, all matters and things engaged to be done by, with or for any local body prior to taking over the works by 3[the Authority] shall be deemed to have been incurred, entered into or engaged to be done by, with or for 4[the Authority]; and all suits or other legal proceedings instituted or which might, but for transfer and vesting under sub-section (1) of section 20, have been instituted or defended by or against the local body, may be continued or instituted or defended by or against 5[the Authority].