# 46    Liability in respect of actionable wrong

Where, immediately before the appointed day, the Union in connection with the governance of the existing Union territory is subject to any liability in respect of an actionable wrong, other than breach of contract, that liability shall,—

(a) if the cause of action arose wholly within the district of Goa of the existing Union territory, be a liability of the State of Goa; and

(b) in any other case, be initially a liability of the State of Goa but subject to such financial adjustments as may be agreed upon between the State of Goa and the Union, or in default of such agreement, as the Central Government may, by order, direct.