Section 56 — Transfer of assets and liabilities of the State Government to the Authority

(1) On and from the date of publication of the notification under section 55,- (a) all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, on behalf of, with, or for, the State Government, immediately before such date for or in connection with the purposes of any highway or any section thereof vested in, or entrusted to, the Authority under that section, shall be deemed to have been incurred, entered into and engaged to be done by, with, or for, the Authority; (b) all non-recurring expenditure incurred by or for the State Government for or in connection with the purposes of any highway or any section thereof, so vested in, or entrusted to, the Authority, up to such date and declared to be capital expenditure by the State Government shall, subject to such terms and conditions as may be prescribed, be treated as capital provided by the State Government to the Authority; (c) all sums of money due to the State Government in relation to any highway or any section thereof, so vested in, or entrusted to, the Authority immediately before such date shall be deemed to be due to the Authority; and (d) all suits and other legal proceedings instituted or which could have been instituted by or against the State Government immediately before such date for any matter in relation to such highway or any section thereof may be continued or instituted by or against the Authority. (2) If any dispute arises as to which of the assets, rights or liabilities of the State Government have been transferred to the Authority, such dispute shall be decided by the State Government.