If the Municipality, upon information in its possession in respect of any Area improvement

built-up area within the municipal area, is satisfied that : scheme.

1. (a) the building in that area are, by reason of disrepair or sanitary defects, unfit for human habitation or are by reason of their bad arrangement or narrowness or bad arrangement of the streets or wants of light air, ventilation or proper conveniences, dangerous or injurious to the health of the inhabitants of that area or,
2. (b) because of bad layout or obsolete or undesirable dwellings, renewal of such area is necessary or,
3. (c) there is need to create new or improvement means of communication and facilities for traffic, and that the most satisfactory methods of remedying these defects is to prepare an area improvement scheme in respect of such area, the Municipality may pass a resolution so to do. Explanation: - For the purpose of this section and section 309, the expression "built-up area" shall mean an area which in the opinion-of the