Property and contracts

(1) As from the appointed date, in relation to any port,— (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 the appointed date, shall vest in the Board; (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 the appointed date, 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; (c) all non-recurring expenditure incurred by the State Government for or in connection with the purposes of the port upto the appointed date and declared to be capital expenditure by the State Government shall be treated as the capital provided by the State Government to the Board; (d) all rates, fees, rents and other sums of money due to the State Government in relation to the port, immediately before the appointed date, shall be deemed to be due to the Board; (e) all suits and other legal proceedings instituted by or against the State Government immediately before the appointed date for any matter in relation to port, may be continued by or against the Board; (f) every employee serving under the State Government immediately before the appointed date solely or mainly for or in connection with the affairs of the port 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 would have held if the Board had not been established and shall continue to do so unless and until his employment in the Board