Amendment status not verified — confirm the current text below against the official source.
Effect of absorption of a transitional area into smaller urban area.—Any local area, comprised in a transitional area may be included in a smaller urban area by virtue of sub-section (1) of section 4 and when it is so included notwithstanding anything contained in this Act or any other law but subject to the provisions of section 4, with effect from the date on which such area is included in the smaller urban area, the following consequences shall ensue, namely:— (a) the Town Panchayat of such local area shall cease to exist; (b) the unexpended balance of the fund of the Town Panchayat (including arrears of rates, taxes and fees) belonging to the Town Panchayat and all rights and powers which, prior to such notification vested in the Town Panchayat shall, subject to all charges, and 200 liabilities affecting the same, vest in the Municipal Council of such smaller urban area (hereinafter referred to as the municipal council); (c) any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted under any law immediately before the said date in respect of the said Town Panchayat shall continue in force and be deemed to have been made, issued, imposed or granted under this Act until it is superseded or modified by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted under this Act; (d) all budget estimates, assessment lists, valuations or measurements, made or authenticated under any law or rule immediately before the said date in respect of the said Town Panchayat shall be deemed to have been made or authenticated under this Act; (e) all debts and obligations incurred and all contracts made by or on behalf of the Town Panchayat immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the Municipal Council in exercise of the powers conferred on it by this Act. (f) all officers and servants in the employment of the Town Panchayat immediately before the said date shall become officers and servants of the municipal council under this Act and shall, until other provision is made in accordance with the provisions of this Act, receive salaries and allowances and be subject to the conditions of service to which they were entitled immediately before such date: Provided that it shall be competent to the Municipal Council subject to the previous sanction of the Government to discontinue the services of any officer or servant who in its opinion, is not necessary or suitable for the requirement of the service under the municipal council after giving such officer or servant such notice as is required to be given by the terms of his employment and every officer or servant whose services are dispensed with shall be entitled to such leave, pension, provident fund and gratuity as he would have been entitled to take or receive on being invalidated out of service, as if the Town Panchayat in the employment of which he was, had not ceased to exist; (g) all proceedings pending on the said date before the Town Panchayat shall be deemed to be transferred to and shall be continued before the Municipal Council; (h) all appeals pending before any authority shall, so far as may be practicable, be disposed of as if the said local area had been included in the smaller urban area when they were filed; (i) all prosecutions instituted by or on behalf of the Town Panchayat and all suits or other legal proceedings instituted by or against the Town Panchayat or any officer of the Town panchayat pending on the said date shall be continued by or against the Municipal Council as if the area of the said Town Panchayat had been included in the smaller urban area when such prosecution, suits or proceedings were instituted; (j) all arrears of rates, taxes and fees vesting in the Municipal Council shall, notwithstanding that such rates and fees cannot be levied under this Act, be recoverable in the same manner as a tax recoverable under this Act; (k) until the reconstitution of the Municipal Council in accordance with the provisions of this Act, notwithstanding anything to the contrary contained in this Act, such number of persons ordinarily resident in the local area of the said Town Panchayat included in the smaller urban area, who shall be nominated by the Government shall be additional councillors of the Municipal Council.