Dissolution of Authorities

(1) Whenever the State Government is of the opinion that 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 such notification and such authority shall stand dissolved accordingly. (2) From the said date— (a) all assets and liabilities of the authority shall vest in the Nagarpalika of that area and such Nagarpalika shall have all the powers as may be necessary for taking possession of such assets, recovering them and dealing with them and for discharge of such liabilities: Provided that in cases where the area of such authority falls within different Nagarpalikas, the assets and liabilities of such authority shall be distributed among such Nagarpalikas in such manner as the State Government may, by order, determine; (b) all pending proceedings in which the authority was a party shall continue as if the Nagarpalika was a party thereto in place of the authority.