The decision of the State Government shall be final and binding on both parties.

Board 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 the Board, 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 water works by the Board shall be deemed to have been incurred, entered into or engaged to be done by/with or for the Board; and all suits or other legal proceedings instituted or which might, but for transfer and vesting under subsection

1. (1) of section 21, have been instituted for or defended by or against the local body, may be continued or instituted or defended by or against the Board.