(1) From such date as may be specified, from time to time, by the State Government (hereinafter in this section referred to as "the appointed date"),-
(a) the properties and assets comprising movables and immovables including Irrigation Projects, Hydro-Electric Power Projects, works under construction and management of completed schemes, specified in that behalf, situated in the area of operation of the Corporation, which immediately before the appointed date vested in the State Government and were under the control of the Irrigation Department, shall vest in and stand transferred to the Corporation and all income derived and expenses incurred in that behalf be brought on books of the Corporation; and
(b) the rights, liabilities and obligations of the State Government, whether arising out of any contract or otherwise pertaining to the said projects of the State Government shall be deemed to be the rights, liabilities and obligations of the Corporation.
(2) Such properties, assets, rights, liabilities and obligations shall be valued in such manner as the State Government may determine.
(3) All suits and other legal proceedings with respect to any scheme for the development of Irrigation Projects and Hydro-Electric Power Projects vested in the Corporation, under sub-section (1), instituted against or defended by the State Government before the appointed date may be continued, or, against or defended by the Corporation.