Section 56 of The Punjab Reorganisation Act, 1966 in hindi — Deposits, etc

Bare section text

Official Legislative Text

(1)The liability of the existing State of Punjab in respect of any civil deposit or local fund deposit shall, on and from the appointed day, be the liability of the successor State in whose territories the deposit has been made: Provided that if the deposit is made in any area outside the existing State, the liability shall be that of the State of Punjab in the first instance and shall be adjusted between the successor States according to the population ratio.
(2)The liability of the existing State of Punjab in respect of any charitable or other endowment shall, on and from the appointed day, be the liability of the successor State in whose territories the institution entitled to the benefit of the endowment is located or of the successor State to which the objects of the endowment, under the terms thereof, are confined.

Educational Study Layer

Summary

This section determines which State is responsible for civil or local fund deposits and charitable endowments made before the split.
Liability for a civil or local fund deposit goes to the State where the deposit was physically made.
If a deposit was made outside the old Punjab boundaries, the new Punjab initially takes the liability, which is later adjusted among all successor States by population ratio.
Liability for a charitable endowment goes to the State where the benefiting institution is located or where the endowment's objects are confined.

Practical examples

1A contractor placed a civil deposit at a government treasury in Karnal for a road project. Since Karnal is now in Haryana, the Haryana government holds the liability for this deposit.

2A wealthy citizen set up an endowment fund strictly for maintaining a specific orphanage in Ambala. Under this rule, Haryana takes over the liability for managing this endowment because the orphanage is in Ambala.

3A local fund deposit for Punjab was made in a bank branch in Delhi, outside the state. The new State of Punjab takes initial responsibility for this deposit, and Haryana and Himachal Pradesh will later settle their shares based on population.

FAQ

1. According to Section 56 of the Punjab Reorganisation Act, 1966, which State is responsible for a civil deposit made in a local treasury?

Under Section 56 of the Punjab Reorganisation Act, 1966, the liability for a civil deposit belongs to the successor State in whose territories the deposit was made.

2. What happens to a deposit made outside the existing State under Section 56 of the 1966 Punjab Reorganisation Act?

Section 56 of the 1966 Punjab Reorganisation Act states that liability for outside deposits belongs to the State of Punjab in the first instance, and is then adjusted between successor States according to the population ratio.

3. How are charitable endowments handled by Section 56 of the Punjab Reorganisation Act?

Section 56 of the Punjab Reorganisation Act assigns liability for a charitable endowment to the successor State where the institution receiving the benefit is located, or where the endowment's objects are confined.

Practice Quiz

Q1.Under Section 56 of the Punjab Reorganisation Act, 1966, who is liable for a local fund deposit made within a specific district treasury?

Q2.If a civil deposit was made in an area completely outside the existing State of Punjab, what does Section 56 of The Punjab Reorganisation Act, 1966 require?

Q3.According to Section 56 of the Punjab Reorganisation Act, 1966, what determines the liability for a charitable endowment?

Q4.How does the population ratio adjustment in Section 56 of the Punjab Reorganisation Act compare to the adjustment rules for general debt in Section 54?

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