(1)On receipt of a scheme forwarded to it under section 3, the Central Governmentmay, after consulting the State Governments concerned, approve the scheme withor without modifications and give effect to the scheme so approved by makingsuch order as it thinks fit.
(2)An order made under sub-section (1) may provide for all or any of the followingmatters, namely:-
(a)the dissolution of the inter-State corporation;
(b)the reconstitution and reorganisation in any manner whatsoever of theinter-State corporation including the constitution, where necessary, of newcorporations;
(c)the area in respect of which the reconstituted corporation or new corporationshall function and operate;
(d)the transfer, in whole or in part, of the assets, rights and liabilities of theinter-State corporation (including the rights and liabilities under any contractmade by it) to any other corporations or State Governments and the terms andconditions of such transfer;
(e)the substitution of any such transferee for the inter-State corporation, or theaddition of any such transferee, as a party to any legal proceeding to which theinter-State corporation is a party; and the transfer of any proceedings pendingbefore the inter-State corporation to any such transferee;
(f)the transfer or re-employment of any employees of the inter-State corporationto, or by any such transferee and subject to the provisions of section 111 ofthe States Reorganisation Act, 1956, 1 [or of any other enactmentrelating to reorganisation of States,] the terms and conditions of serviceapplicable to such employees after such transfer or re-employment;
(g)the adaptations or modifications of the Act under which the inter-Statecorporation was constituted, whether by way of repeal or amendment as may benecessary or expedient to give effect to the approved scheme;
(h)such incidental, consequential and supplementary matters as may be necessary togive effect to the approved scheme.
(3)Where an order is made under this section transferring the assets, rights andliabilities of any inter-State corporation, then, by virtue of that order, suchassets, rights and liabilities of the inter-State corporation shall vest in andbe the assets, rights and liabilities of, the transferee.
(4)Every order made under this section shall be published in the Official Gazetteand the Act under which the inter-State corporation was constituted shall haveeffect subject to the provisions of the order and the adaptations andmodifications made thereby until altered, repealed or amended by the competentLegislature of a State.
(5)Every order made under this section shall be laid before each House ofParliament, as soon as may be, after it is made.
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1.Inserted by the Bombay Reorganisation Act, 1960 (Act 11 of 1960) w.e.f01.05.1960.