law: The Andhra Pradesh reorganization Act, 2014
  60.  Contracts
  1.    Where,
  
  before the appointed day, the existing State of Andhra Pradesh has made any
  
  contract in the exercise of its executive power for any purposes of the State,
  
  that contract shall,--
  a. 
  
    if the purposes of the contract are, on and from the appointed
  
  day, exclusive purposes of either of the successor States of Andhra Pradesh and
  
  Telangana, then it shall be deemed to have been made in exercise of the
  
  executive power of that State and the liability shall be discharged by that
  
  State; and
  b. 
  
    in any other case, all rights and liabilities which have accrued
  
  or may accrue under any such contract shall be apportioned between the
  
  successor States on the basis of population ratio or in any other manner as may
  
  be agreed to by the successor States.
  1. 
  
    
  2.    For the
  
  purposes of this section, there shall be deemed to be included in the
  
  liabilities which have accrued or may accrue under any contract-- 
  a. 
  
    any liability to satisfy an order or award made by any court or
  
  other tribunal in proceedings relating to the contract; and
  b. 
  
    any liability in respect of expenses incurred in or in
  
  connection with any such proceedings.
  3.    This
  
  section shall have effect subject to the other provisions of this Part relating
  
  to the apportionment of liabilities in respect of loans, guarantees and other
  
  financial obligations; and the bank balances and securities shall,
  
  notwithstanding that they partake of the nature of contractual rights, be dealt
  
  with under those provisions.