BIHAR STATE HOUSING BOARD Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) ALL the parties at the Bar consent to and agree that this matter needs to be resolved. Plainly the issue is that there appears to be a lis which is the result of the division of Bihar in pursuance of the Bihar Re -organisation Act, 2000 and that some of the activities of the companies which were situated in Bihar continue to have activities in the State of Jharkhand, assets not excluded. Bifurcation of activities and assets are the issues.

(2.) A writ petition was brought by the Bihar State Housing Board, a company being an inter -State body corporate within the meaning of the Act, aforesaid. This Court is not going into the merits of the issue at present. Suffice it to say that all parties at the Bar agree that issues are identifiable and are about assets and liabilities on who is to retain how much and where and perhaps the restructure of the management board of the company. Counsel for the parties also accept that it does appear that between one State and another State and the erstwhile Corporation, a body corporate having the attribute of "an inter -State body Corporate" has been permitted by law "on and from the appointed day, continue to function and operate in those areas in respect to which it was functioning and operating immediately before that day". The law also enjoins that this functioning may be" subject to such directions as may from time to time be issued by the Central Government, until other provision is made by law in respect of the said body corporate". Parties and their attorneys also accept that any directions issued by the Central Government in respect of such inter -State body corporate" shall include a direction that any law by which the said body corporate is governed shall, in its application to that body corporate, have effect subject to such exceptions and modifications as may be specified in the direction".

(3.) THIS Court is reproducing certain passages from each of the decisions of the Supreme Court :