Amendment status not verified — confirm the current text below against the official source.
Effect of conversion of transitional area into a smaller urban area.—(1) Subject to the provisions of section 3, the Governor may declare, by notification that any 201 transitional area shall with effect from the date to be specified in such notification be a smaller urban area constituted under section 3 of this Act. (2) The provisions of this Act applicable to such transitional area shall not apply to any local area declared as smaller urban area in sub-section (1) with effect from the date specified in the declaration: Provided that any appointment, notification notice, tax order, scheme, licence, permission, rule, bye-law or form made or issued or imposed under this Act in respect of such Town Panchayat which were in force as applicable immediately before the date specified under sub-section (1) shall continue in force and be deemed to have been made, issued or imposed under the provisions of this Act, in respect of a Municipal Council unless and until it is superseded by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made or issued or imposed under this Act. (3) With effect from the date of declaration of any area as a smaller urban area, under sub-section (1), the following consequences shall ensue, namely:— (a) the body functioning as a Town Panchayat under this Act, immediately before the date of the said declaration in respect of the said area shall become a body competent to exercise the powers and perform the duties conferred by the provisions of this Act on a Municipal Council in respect of the said area until a Municipal Council is duly constituted for the area within the jurisdiction of such body under the provisions of this Act; (b) the Councillors of the Town Panchayat holding office as such immediately before the said date shall become Councillors of the Municipal Council; (c) the President of the said Town Panchayat shall become the President of the Municipal Council and discharge duties and perform functions of the President under this Act and the Vice-President of the said Town Panchayat shall become the Vice-President of the said Municipal Council under this Act; (d) where, under the provisions of section 315 or section 316 either an administrator or an officer has been appointed, in respect of such Town Panchayat to exercise the powers and perform the duties of the Town Panchayat, then, such administrator or officer shall be deemed to be an Administrator appointed in respect of the Municipal Council; (e) the unexpended balance of the Town Panchayat fund and the property (including arrears of rates, taxes and fees) belonging to the said Town Panchayat and all rights and powers which prior to the said declaration vested in the Town Panchayat shall, subject to all charges and liabilities affecting the same, vest in the Municipal Council as the municipal fund; (f) any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made or issued or imposed under this Act in respect of such Town Panchayat shall continue in force and be deemed to have been made, issued or imposed under the provisions of this Act, in respect of a Municipal Council, unless and until it is superseded by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made or issued or imposed under this Act; (g) all budget estimates, assessment lists, valuation or measurements made or authenticated under this Act in respect of the Town Panchayat immediately before the said date shall be deemed to have been made or authenticated under this Act in respect of the said Municipal Council; (h) 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 or under this Act; 202 (i) all proceedings pending prior to the said declaration before the Town Panchayat shall be continued by the Municipal Council; (j) all appeals pending before any authority shall so far as may be practicable, be disposed of as if the said area has been included in the smaller urban area when they were filed; (k) 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 such area had been included in the Municipal Council when such prosecutions, suits or proceedings were instituted; (l) 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 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 requirements 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. (4) A Municipal Council shall be duly constituted for the smaller urban area under this Act within a period of six months from the date of declaration referred to in sub-section (1) and from the date of the first meeting of the Municipal Council as so constituted the body exercising the powers and performing the duties of the Municipal Council shall stand dissolved. (5) the properties, rights and liabilities of the Town Panchayat or a transitional area declared as a smaller urban area under sub-section (1) shall vest in the Municipal Council of the said smaller urban area with effect from the date specified in the notification.]1 CHAPTER XVI PROVISIONS FOR CONVERSION OF 1[PANCHAYAT AREA INTO A SMALLER URBAN AREA]1 AND FOR AMALGAMATION AND DIVISION OF 1[SMALLER URBAN AREAS]1, ETC