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The preceding Section 56 empowers the competent authority or the local authority to order discharge of the juvenile or child from Children’s Home or transfer him from one such Home to another within the State.

But the present section authorises such transfer from the Children’s Home or Special Home of one State to the institution of the like nature situated in some other State or any part of India. However, before ordering such inter-state institutional transfer, the State Government or the local authority must send prior-intimation of such transfer to the local Juvenile Justice Board or the Children’s Welfare Committee, as the case may be.

In Court on its own Motion v. State of Jharkhand, the High Court expressed dis­satisfaction of the State of Bihar and Jharkhand having failed to take any action in restoring the juvenile girl ‘R’ to the care and protection of her parents/guardian from one State to another and, therefore, directed each State to pay a compensation of rupees one lakh to ‘R’ for this default.