State Act
Section 6. State Government or the Corporation not to be liable for prior liabilities
6- (1) Except as provided in sub-section (2) no liability of the Nigam in relation to the undertaking incurred prior to the appointed day and no award decree or order of any court, tribunal or other authority in relation to the undertaking, passed after the appointed day, in respect of any matter, claim or dispute which arose before that day, shall be enforceable against the State Government or the Corporation. (2) The liability of the Nigam to the Central Electricity Authority to the tune of approximately two crore rupees on account of consultancy and to the Power Finance Corporation to the tune of approximately four crore rupees on account of construction of the undertaking shall, on vesting of the Undertaking in the State Government under section 3, be of the State Government and on its vesting in the Corporation under section 5, of the Corporation : Provided that such liability of the Corporation in aforesaid accounts shall, in no case exceed two crore rupees and four crore rupees respectively.