Chapter IV PROPERTY AND CONTRACTS

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 State 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 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;
3. (c) all non-recurring expenditure incurred by the State Government for or in connection with the 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 Government to the Board;
4. (d) all rates, fees, rents and other sums of money due to the Government in relation to the port, 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 port, 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 the minor port shall be come 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 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 conditions of service are duly altered by the Board: 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.

As from the appointed day, all rates, fees and other charges in relation to any port, shall unless and until varied in accordance with 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 State Government before such day.

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

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 Land Acquisition Act, 1894 (I of 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:-

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 leasing 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 thinks fit.
3. (c) No contract for the acquisition or sale of immoveable 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 Government, on such terms and conditions as it may thinks fit.
4. (d) The form and manner of executing contracts on behalf of the Board shall be such as may be prescribed by rules.
5. (e) No contract which is not made in accordance with the provisions of this Act and the rules shall be binding on the Board.