Dissolution of authorities

(1) Whenever, in the opinion of the State Government, the continued existence of any authority constituted under this Act is unnecessary or undesirable, the State Government may, by notification, declare that such authority shall be dissolved from such date as may be specified in the notification, and such authority shall be dissolved accordingly. (2) From the said date: (a) all assets and liabilities of the authority shall vest in the Municipal Corporation of that area and such Corporation shall have all such powers as may be necessary to take possession of and recover such assets and to deal with them, and to discharge such liabilities: Provided that in cases where the area of such authority falls under different Municipal Corporations, the assets and liabilities of such authority shall be distributed among such Municipal Corporations in such manner as the State Government may, by order, determine. (b) all pending proceedings, to which the authority was a party, shall continue as if the Municipal Corporation was a party thereto in place of the authority.