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Where, immediately before the appointed day, Bihar
is subject to any liability in respect of actionable wrong other than breach of contract, that liability
shall,—
(a) if the cause of action arose wholly within the transferred territories, be a liability of West
Bengal;
(b) if the cause of action arose wholly within the territories of Bihar excluding the transferred
territories, be a liability of Bihar; and
(c) in any other case, be initially a liability of Bihar, but subject to such financial adjustment as
may be agreed upon between that State and West Bengal, or in default of such agreement, as the
Central Government may by order direct.
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