(1) All rights, liabilities and obligations of the Central Government which, whether arising out of any contract or otherwise, were acquired or incurred by it in connection with any transaction for the development of Faridabad or for any of the purposes referred to in this Act before the establishment of the Corporation, shall be deemed to have been acquired or incurred by the Corporation and shall be the rights, liabilities and obligations, respectively, of the Corporation.
     (2) All suits or other legal proceedings instituted or which might but for the issue of the notification under sub-section (1) of section 3 has been instituted by or against the Central Government may be continued or instituted by or against the Corporation.