(1) Notwithstanding anything in the Co-operative Societies Act, or the rules made thereunder or the bye-laws of the transferor societies for the time being in force, with effect on and from the specified day-
(i) the transferor societies shall stand merged with the transferee society;
(ii) the assets and liabilities of every description of the transferor societies shall stand transferred to the Telangana State Handloom Weavers Co-operative Society Limited:
Provided that no such transfer shall prejudicially affect or render ineffective any suit, appeal or legal proceedings of whatever nature pending by or against the transferor societies, but such suit, appeal or legal proceedings may be continued, prosecuted and enforced by or against the transferee society;
Provided further that the liabilities of the transferor societies shall continue to be governed by such guarantee of the Government as substituted with regard to them on the specified day, as if such guarantee were given in respect of the liabilities so transferred, immediately after the specified day;
(iii) the Government, the primary and other Co-operative Societies, and others who are members of, or affiliated to the transferor societies shall be deemed to be the members of, or affiliated to the transferee society;
(iv) all contracts, deeds, bonds, agreements and other instruments of whatever nature subsisting and relating to the assets and liabilities transferred to the transferee society from the transferor societies which have been parties thereto, shall have full force in favour of or against the transferee society, and may be enforced as if the said transferee society has been a party thereto.
(2) The Government or any officer authorized by them in this behalf may amend the bye-laws of the transferee society so as to give effect to the merger and for any other matters incidental thereto.
(3) The Government may, by notification make such supplemental, incidental and consequential provisions (including the provisions as to committees, authorities, properties, right and interest liabilities, duties and obligations of the transferor societies or transferee society) as they may deem necessary to give effect to the provisions of this Act.