Finance, Property, Contracts
From the Constitution's commencement, property/assets that belonged to the Crown for governing the Dominion of India (or each Governor's Province) vest respectively in the Union and the corresponding State; and the pre-Constitution Dominion/Provincial governments' contractual and other rights/liabilities/obligations become those of the Union and corresponding State governments respectively - subject to adjustments from Partition.
This is a historical transitional provision that smoothly transferred all pre-independence government property, contracts, and legal obligations into the new post-1950 constitutional structure, ensuring continuity (the new governments inherited both the assets AND the legal responsibilities of their colonial-era predecessors) rather than a legal vacuum at the moment of transition.
This is why the Union of India, as a legal entity, is understood to be the continuing legal successor to the pre-independence Government of British India for property and contractual purposes, rather than a legally distinct new entity starting from zero in 1950.