Transfer of assets and liabilities of State Government to 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 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.