Section 11 of APMTT Act, 1968 : Section 11: Assets And Liabilities

Explanation using Example

Imagine a situation where the State of Mysore owns a piece of land and a warehouse full of agricultural equipment in the territory that is to be transferred to the State of Andhra Pradesh. According to Section 11(1) of The Andhra Pradesh and Mysore (Transfer of Territory) Act, 1968, on the appointed day of the transfer, the ownership of the land and the warehouse, along with all the agricultural equipment stored inside it, would automatically pass to the State of Andhra Pradesh. The term "land" refers to all types of immovable property and associated rights, excluding currency.

Furthermore, if the State of Mysore had entered into a contract with a construction company to build a school on that piece of land, Section 11(2) would mean that from the appointed day, the State of Andhra Pradesh would step into the shoes of the State of Mysore regarding this contract. This means Andhra Pradesh would now have the right to have the school built as per the contract and would also be responsible for fulfilling any payment obligations or other terms that Mysore had agreed to with the construction company.