Establishment and incorporation of Gaon Sabha and Gaon Sabha Area

(1) The Chief Commissioner may by notification in the official gazette divide the entire area of the State into Gaon Sabha areas each comprising one or more contiguous revenue villages for the purposes of this Act and may by notification alter the boundaries of any area so notified: Provided that such areas shall not include any area to which the Delhi Panchayat Raj Act, 1954, does not extend. (2) There shall be established for each Gaon Sabha Area and from such date or dates and by such name as may be prescribed, a Gaon Sabha having perpetual succession which shall be a body corporate and subject to any other enactment vested with the capacity of suing and being sued in its corporate name of acquiring, holding, administering and transferring property, both movable and immovable, and of entering into contracts. (3) If the whole of a Gaon Sabha area ceases to be included in rural areas as defined in the Delhi Municipal Corporation Act, 1957, by virtue of a notification under section 507 of that Act, the Gaon Sabha constituted for that area shall thereupon stand dissolved and on such dissolution,- (a) all properties, movable and immovable, and all interests of whatsoever nature and kind therein including moneys held in Gaon Sabha Area Fund, vested in the Gaon Sabha immediately before such dissolution, shall, with all rights of whatsoever description, used, enjoyed or possessed by such Gaon Sabha, vest in the Central Government; (b) all duties, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Gaon Sabha before such dissolution shall be deemed to have been incurred, entered into or engaged to be done with or for the Central Government; (c) all rates, taxes, cesses, fees, rents and other charges due to the Gaon Sabha immediately before such dissolution shall be deemed to be due to the Central Government; (d) all suits, prosecutions and other legal proceedings instituted or which might have been instituted by or against the Gaon Sabha may be continued or instituted by or against the Union of India; (e) the provisions of this Act shall apply in relation to lands in such Gaon Sabha area, not being lands vested in the Central Government clause (a), subject to the modification that references therein to Gaon Sabha and Gaon Panchayat shall be construed as references to the Central Government; (f) notwithstanding anything contained in clause (b) of sub-section (2) of section 1, the provisions of sections 84, 85, 86, 86A and 87 and any other provision of this Act relating to ejectment of persons shall apply in relation to lands vested in the Central Government under clause (a) subject to the modification that references therein to Gaon Sabha and Gaon Panchayat shall be construed as references to the Central Government.