Liability in respect of actionable wrong.

Where, immediately before the appointed day, Bihar is subject to any liability in respect of actionable wrong other than breach of contract, that liability shall,—

1. (a) if the cause of action arose wholly within the transferred territories, be a liability of West Bengal;
2. (b) if the cause of action arose wholly within the territories of Bihar excluding the transferred territories, be a liability of Bihar; and
3. (c) in any other case, be initially a liability of Bihar, but subject to such financial adjustment as may be agreed upon between that State and West Bengal, or in default of such agreement, as the Central Government may by order direct.