Article 294 of Constitution of India "Succession to property, assets, rights, liabilities and obligations in certain cases.- from the commencement of this Constitution"
(a) all property and assets which immediately before such commencement were vested in His Majesty for the purposes of the Government of the Dominion of India and all property and assets which immediately before such commencement were vested in His Majesty for the purposes of the Government of each Governor's Province shall vest respectively in the Union and the corresponding State, and
(b) all rights, liabilities and obligations of the Government of the Dominion of India and of the Government of each Governor?s Province, whether arising out of any contract or otherwise, shall be the rights, liabilities and obligations respectively of the Government of India and the Government of each corresponding State, subject to any adjustment made or to be made by reason of the creation before the commencement of this Constitution of the Dominion of Pakistan or of the Provinces of West Bengal, West Punjab and East Punjab.
Article 295 of Constitution of India "Succession to
property, assets, rights, liabilities and obligations in
other cases.- (1) As from the commencement of this
Constitution"
(a) all property and assets which immediately before such
commencement were vested in any Indian State corresponding
to a State specified in Part B of the First Schedule shall
vest in the Union, if the purposes for which such property
and assets were held immediately before such commencement
will thereafter be purposes of the Union relating to any of
the matters enumerated in the Union List, and
(b) all rights, liabilities and obligations of the
Government of any Indian State corresponding to a State
specified in Part B of the First Schedule, whether arising
out of any contract or otherwise, shall be the rights,
liabilities and obligations of the Government of India, if
the purposes for which such rights were acquired or
liabilities or obligations were incurred before such
commencement will thereafter be purposes of the Government
of commencement will thereafter be purposes of the
Government of India relating to any of the matters
enumerated in the Union List, subject to any agreement
entered into in that behalf by the Government of India with
the Government of that State.
(2) Subject as aforesaid, the Government of each State
specified in Part B of the First Schedule shall, as from the
commencement of this Constitution, be the successor of the
Government of the corresponding Indian State as regards all
property and assets and all rights, liabilities and
obligations, whether arising out of any contract or
otherwise, other than those referred to in clause (1).