(1) Power of State Government to dissolve or supersede municipality in case of incompetency, default, or abuse of

(1) Power of State Government to dissolve or supersede municipality in case of incompetency, default, or abuse of power. (2) Consequences of dissolution. (3) Constitution of municipality after dissolution. (4) [Deleted.] (1) If, in the opinion of the State Government, a municipality is not competent to perform, or deliberately makes default in the performance of the duties imposed on it by or under this Act, or otherwise by law or exceeds or abuses its powers, the State Government may, after giving the municipality an opportunity to render an explanation, by an order published, with the reasons therefore, in the Official Gazette declare the municipality to be incompetent or in default, or to have exceeded or abused its powers, as the case may be, and may dissolve such municipality * * * * *.

(2) When the municipality is so dissolved * * * * *, the following consequences shall ensue : -

(a) all councillors of the municipality shall * * * * in the case of dissolution as from the date specified in the order of dissolution, vacate their offices as such councillors ;

(b) all powers and duties of the municipality shall, during the period of dissolution * * * * be exercised and performed by such officer as the Director from time to time appoints in this behalf;

(3) (a) An election to constitute a municipality shall be completed before the expiration of a period of six months from the date of its dissolution:

Provided that where the remainder of the period for which the dissolved municipality would have continued is less than six months, it shall not be necessary to hold any election under this clause for constituting the municipality for such period;

(b) A municipality constituted upon the dissolution of municipality before the expiration of its duration shall continue only for the reminder of the period for which the dissolved municipality would have continued had it not been so dissolved.

Explanation.-If for any reason the number of vacancies in a municipality exceeds two-thirds of the total number of seats the municipality shall be deemed to be not competent to perform the duties imposed on it by or under this Act.