Where, immediately before the appointed day, the State of Andhra Pradesh or Madras 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 transferred territories, be a liability of the State to which they are transferred; and
         (b) in any other case, continue to be a liability of the State which, immediately before that day, was subject to such liability.