Amendment status not verified — confirm the current text below against the official source.
(1) If, in the opinion of the State Government a trust persistently makes default or is negligent in the performance of duties imposed on it by or under this Act or the rules made thereunder, or when all schemes sanctioned under this Act have been executed or have so far been executed as to render the continued existence of the trust unnecessary, or when it is expedient that the trust should cease to exist, the State Government may, by notification, dissolve the trust : Provided that before issuing a notification under this sub-section, the State Government shall give a reasonable opportunity to the trust for showing cause against the proposed dissolution and shall consider the explanation and objections, if any, of the trust. (2) Upon the publication of a notification under sub-section (1), dissolving a trust, the following consequences shall ensue :— (a) all trustees including the chairman of the trust shall, as from the date of such publication, be deemed to have ceased to be trustees of the trust; (b) all properties, funds and dues which are vested in or realizable by the trust and the chairman, shall vest in the State Government and be realizable through such General power of trust to pay compensation. Dissolution of trust. TOWN IMPROVEMENT authority, as the State Government may, by notification, specify; and the State Government shall bear all the legal liabilities of the trust subsisting at the date of its dissolution; (c) for the purpose of completing the execution of any scheme, sanctioned under this Act which has not been fully executed by the trust, and of realizing properties, funds and dues referred to in clause (b), the functions of the trust and the chairman under this Act shall be discharged by such authority as the State Government may, by notification, specify; and (d) the authority referred to in clause (b) shall keep separate accounts of all moneys respectively received and expended by it under this Act, until all loans raised thereunder have been repaid and until all other liabilities referred to in clause (b) have been duly met: 1[Provided that where a trust has been dissolved under sub-section (1) within the territorial jurisdiction of a municipality and the properties, funds and dues have vested in the Government, it may transfer the property, funds and dues of the dissolved trust to the municipality which shall also bear all the legal liabilities of the trust subsisting at the date of its dissolution and further the employees of such trusts whose properties, funds and dues have been transferred to the municipality, after dissolution, shall be transferred to other trusts on any post carrying same scale of pay.] (3) All properties, funds and dues, which had vested in the authority and had become realizable by the authority on the dissolution of the trust and all liabilities which were enforceable against the authority before the commencement of this Act, shall re-vest in the State Government and be realizable and enforceable through such authority as the State Government may, by notification, specify and such authority shall discharge the function of completion of the sanctioned schemes. (4) After all functions referred to in clause (c) of sub-section (2) or sub-section (3) have been duly discharged — (a) the properties, funds and dues vested in or realizable by the State Government through such authority as the