#THE INTER-STATE CORPORATIONS ACT, 1957 
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##ARRANGEMENT OF SECTIONS 
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SECTIONS 
1. Short title. 
2. Definition. 
3. Power of State Governments to frame schemes. 
4. Reorganisation of certain inter-State corporations. 
5. Power of Central Government to add to the Schedule. 
THE SCHEDULE. 



#THE INTER-STATE CORPORATIONS ACT, 1957 

##ACT NO. 38 OF 1957 

[20th September, 1957.] 

An  Act  to  provide  for  the  reorganisation  of  certain  corporations  functioning  in  two  or  more 
  States  by  virtue  of  section  109  of  the  States  Reorganisation  Act,  1956,  and  for  matters 
  connected therewith. 

  BE it enacted by Parliament in the Eighth Year of the Republic of India as follows:— 

1. **Short title.**—This Act may be called the Inter-State Corporations Act, 1957. 

2. **Definition.**—In this Act, “inter-State corporation” means any body corporate constituted under any 
of the Acts specified in the Schedule and functioning in two or more States by virtue of section 109 of the 
States  Reorganisation  Act,  1956 (37 of  1956), or  of  any  other enactment  relating  to  reorganisation  of 
States.

3. **Power of State Governments to frame schemes.**—If it appears to the Government of a State in 
any  part  of  which  an  inter-State  corporation  is  functioning  that  the  inter-State  corporation  should  be 
reconstituted and reorganised as one or more inter-State corporations or that it should be dissolved, the 
State Government may frame a scheme for such reconstitution and reorganisation or such dissolution, as 
the  case  may  be,  including  proposals  regarding  the  transfer  of  the  assets,  rights  and  liabilities  of  the    
inter-State corporation to any other corporations or State Governments and the transfer or re-employment 
of employees of the inter-State corporation and forward the scheme to the Central Government. 

4. **Reorganisation of certain inter-State corporations.**—(1) On receipt of a scheme forwarded to it 
under section 3, the Central Government may, after consulting the State Governments concerned, approve 
the  scheme  with  or  without  modifications  and  give  effect  to  the  scheme  so  approved  by  making  such 
order as it thinks fit. 

(2) An  order  made  under  sub-section  (1)  may  provide  for  all  or  any  of  the  following  matters, 
namely:— 

  (a) the dissolution of the inter-State corporation; 

  (b) the reconstitution and reorganisation in any manner whatsoever of the inter-State corporation 
including the constitution, where necessary, of new corporations; 

  (c) the  area in  respect  of  which  the  reconstituted  corporation  or  new  corporation  shall  function 
and operate; 

  (d) the  transfer,  in  whole  or  in  part,  of  the  assets,  rights  and  liabilities  of  the  inter-State 
corporation  (including  the  rights  and  liabilities  under  any  contract  made  by  it)  to  any  other 
corporations or State Governments and the terms and conditions of such transfer; 

  (e) the substitution of any such transferee for the inter-State corporation, or the addition of any 
such transferee, as a party to any legal proceeding to which the inter-State corporation is a party; and 
the transfer of any proceedings pending before the inter-State corporation to any such transferee; 

  (f) the transfer or re-employment of any employees of the inter-State corporation to, or by, any 
such  transferee  and  subject  to  the  provisions  of  section  111  of  the  States  Reorganisation 
Act, 1956 (37 of 1956), or of any other enactment relating to reorganisation of States the terms and 
conditions of service applicable to such employees after such transfer or re-employment; 

  (g) the  adaptations  or  modifications  of  the  Act  under  which  the  inter-State  corporation  was 
constituted, whether by way of repeal or amendment, as may be necessary or expedient to give effect 
to the approved scheme; 

  (h) such incidental, consequential and supplementary matters as may be necessary to give effect 
to the approved scheme. 

(3) Where  an  order  is  made  under  this  section  transferring  the  assets,  rights  and  liabilities  of  any 
inter-State  corporation, then,  by  virtue  of  that  order, such  assets,  rights  and  liabilities  of  the inter-State 
corporation shall vest in, and be the assets, rights and liabilities of, the transferee. 

(4) Every order made under this section shall be published in the Official Gazette and the Act under 
which the inter-State corporation was constituted shall have effect subject to the provisions of the order 
and the adaptations and modifications made thereby until altered, repealed or amended by the competent 
Legislature of a State. 

[^1][(5) Every order made under this section shall be laid, as soon as may be after it is made, before each 
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in 
one session or in two or more successive sessions, and if, before the expiry of the session immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in the order or both Houses agree that the order should not be made, the order shall thereafter have effect 
only in such modified form or be of no effect, as the case may be; so, however, that any such modification 
or annulment shall be without prejudice to the validity of anything previously done under that order.] 

5. **Power of Central Government to add to the Schedule.**—The  Central  Government  may,  by 
notification  in  the  Official  Gazette,  specify  in  the  Schedule  any  Act  under  which  a  body  corporate 
constituted  for  a  State  is  functioning  in  two  or  more  States  by  virtue  of  section  109  of  the  States 
Reorganisation Act, 1956 (37 of 1956), or of any other enactment relating to reorganisation of States 
and on the issue of such notification, the Schedule shall be deemed to be amended by the inclusion of the 
said Act therein. 



[^1]. Subs. by Act 20 of 1983, s. 2 and the Schedule, for sub-section (5) (w.e.f. 15-3-1984). 



##THE SCHEDULE 

*(See* sections 2 and 5) 

1. The Bombay Medical Practitioners Act, 1938 (Bom. XXVI of 1938). 
2. The Bombay Secondary School Certificate Examination Act, 1948 (Bom. XLIX of 1948). 
3. The Bombay Housing Board Act, 1948 (Bom. LXIX of 1948). 
4. The Bombay Khar Lands Act, 1948 (Bom. LXXII of 1948). 
5. The Bombay Public Trust Act, 1950 (Bom. XXIX of 1950). 
6. The Bombay Labour Welfare Fund Act, 1953 (Bom. XL of 1953). 
7. The Bombay Nurses, Midwives and Health Visitors Act, 1954 (Bom. XIV of 1954). 
8. The Bombay Village Industries Act, 1954 (Bom. XLI of 1954). 
9. The Hyderabad Nurses, Midwives and Health Visitors’ Registration Act, 1951 (Hyd. XIX of 1951). 
10. The Hyderabad Khadi and Village Industries Board Act, 1955 (Hyd. XII of 1955) 
11. The Madhya Pradesh Bhudan Yagna Act, 1953 (M. P. XV of 1953). 