Procedure by the State Government when Municipal authority fails to take action

(1) If, within the period fixed by any order issued under section

47[374] or any other provisions of this Act, any action directed thereunder has not been duly taken, or cause has not been shown as aforesaid, the State Government may, by order,—

1. (a) appoint some person to take the action so directed;
2. (b) fix remuneration to be paid to him; and
3. (c) direct that such remuneration and the cost of taking such action shall be defrayed out of the Municipal fund and, if necessary, that any one or more of the taxes authorised by Chapter XI shall be levied or increased.

1. (2) The person appointed under sub-section (1) may, for the purpose of taking the action directed under section 374, exercise any of the powers conferred on any officer of the Corporation by or under this Act, including the power to draw cheques on the account of the Municipal fund.
2. (3) Any bank or society having the custody of any account referred to in sub-section
3. (2) shall be bound to honour cheques drawn as aforesaid on that account to the extent of the amount standing to the credit of the Municipal fund.
4. (4) The State Government may, in addition to or instead of directing under sub-section
5. (1) the levy or increase of any taxes, direct by notification that any sum of money which may, in its opinion, be required for giving effect to any order issued under that sub-section be borrowed, by way of debenture on the security of all or any of the said taxes, at such rates of interest and upon such terms as to the time of repayment/and otherwise as may be specified in the notification.
6. (5) The provisions of Chapter IX shall apply to any loan raised in pursuance of sub-section (4).