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Where, immediately before the appointed
day, the State of Haryana or Uttar Pradesh is liable as guarantor in respect of any liability of a registered
co-operative society, that liability shall,—
(a) if the area of the society's operations is limited to the transferred territories, be a liability of
the State to which the territories are transferred; and
(b) in any other case, continue to be a liability of the State which, immediately before that day,
was subject to such liability.
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