Section 38. Special provision as to transfer of assets, rights, liabilities, etc., of Union in relation to transferred territories under Act 31 of 1966.

(1) In this section, the expression "successor States" and "transferred territories" have the meaning respectively assigned to them in the Punjab Reorganisation Act, 1966. (2) The Central Government may, by order, transfer to the State of Himachal Pradesh the benefit or burden of any assets rights, liabilities or obligations of the Union under the Punjab Reorganisation Act, 1966, in so far as such benefit or burden is, in the opinion of the Central Government, attributable to the transferred territories. (3) An order made under sub-section (2) may provide that the State of Himachal Pradesh shall be successor State in relation to the transferred territories for all or any of the purposes of the Punjab Reorganisation Act, 1966, or confer or impose on the State of Himachal Pradesh rights and obligations which correspond so far as may be to the rights and obligations conferred or imposed on the successor States by or under that Act. (4) Without prejudice to the provisions of section 49, the Central Government may, for the purpose of giving effect to the provisions of this section, by order, direct that the provisions of Part VI, Part VII, Part VIII and Part IX and connected provisions of the Punjab Reorganisation Act, 1966, shall have effect subject to such exceptions and modifications as may be specified in the order.