(1) Unless otherwise expressly provided by or under this Act, all contracts, agreements and other instruments of whatever nature subsisting or having effect immediately before the appointed day and to which the Improvement Trust is a party or which are in favour of the Improvement Trust, shall be of full force and effect against or in favour of the Authority, as the case may be, and may be enforced or acted upon fully and effectually, as if instead of the Improvement Trust, the Authority had been a party thereto or as if they had been entered into or issued in favour of the Authority.
(2) If on the appointed day any suit, appeal or other legal proceedings of whatever nature by or against the Improvement Trust is pending, then, it shall not abate or be discontinued or be in any way prejudicially effected by reason of the transfer to the Authority of the assets and liabilities of the Improvement Trust or of any thing done under this Act, but the suit, appeal or other legal proceedings may be continued, prosecuted and enforced by or against the Authority.
Explanation. - For the purposes of this sub-section, legal proceedings include any proceedings under the Land Acquisition Act, 1894 (Central Act 1 of 1894).