Effect of conversion of gram panchayat into municipality

Effect of conversion of gram panchayat into municipality. Where an area comprised in a gram is specified as a transitional area or, as the case may be, a small urban area, under clause (2) of article 243Q of the Constitution of India, then with effect from the date on which such area is so specified, the following consequences shall ensue that is to say;

(a) the panchayat functioning in the local area shall stand dissolved and the Sarpanch and the Upasarpanch or, as the case may be, the Chairman and the Vice-Chairman and all other members of such panchayat shall vacate their offices ;

(b) (i) the member elected by the gram panchayat of the gram shall cease to be the member of the Nyaya Panchayat constituted for a group of grams and the said Nyaya Panchayat shall continue to function in respect of the group of grams excluding the local area unless the number of grams remaining in the group is rendered less than three ;

(ii) the Nyaya Panchayat of the dissolved nagar panchayat shall stand dissolved and all members thereof shall vacate their offices ;

(iii) the concilliation panch of the dissolved panchayat shall cease to exist;

(d) the State Government shall appoint an officer as an administrator to exercise the powers and perform the duties and functions of municipality for such area until a municipality is constituted for such area under this Act;

(dd) the municipality shall be reconstituted within a period of six months from the said date in accordance with the provisions of this Act. The duration of such reconstituted municipality and the Councillors shall be the same as provided in section 8 of this Act;

(e) the unexpended balance of the gram fund * * * and property including arrears of rates, taxes, and fees, belonging to the dissolved panchayat, and all rights and powers, which prior to the said date, vested in the panchayat shall subject to all charges and liabilities affecting the same, vest in the administrator or administrators on behalf of the * * * municipality until a municipality is constituted and on constitution of a municipality in such municipality;

(f) (i) any appointment, notification, notice, order, scheme, licence, permission, rule, bye-law or form made, issued or granted or deemed to have been made, issued or granted under the Panchayats Act, immediately before the said date in respect of the local area shall continue in force and be deemed to have been made, issued or granted in respect of the municipal borough, until it is superseded or modified by any other appointment, notification, notice, order, scheme, licence, permission, rule, bye-law or form made, issued or granted under this Act;

(ii) any tax, fee or cess (not being cess levied under section 181 of the Panchayats Act) which immediately before the said date were being levied by the State Government or by the dissolved panchayat in the local area shall continue to be levied in the municipal borough until it is superseded or modified by any other tax, fee or cess levied under this Act;

(iii) any tax, fee or cess which immediately before the said date were being levied by a taluka panchayat or a district panchayat or the cess which before the said date was being levied by the State Government under section 181 of the Panchayats Act in the local area shall cease to be so levied in the municipal borough after the end of the financial year in which the said date occurs except that as respects arrears of such tax, fee or cess at the end of the financial year, the provisions of section 7 of the Bombay General Clauses Act, 1904 shall apply as if the Panchayats Act had then been repealed by a Gujarat Act, in so far as the local area is concerned;

(g) all budget estimates, assessments, assessment lists, valuation or measurements made or authenticated under the Panchayats Act immediately before the said date in respect of the local area shall be deemed to have been made or authenticated under this Act;

(h) all debts and obligations incurred and all contracts made by or on behalf of the dissolved panchayat immediately before the said date and subsisting on that date shall be deemed to have been incurred and made by the * * * municipality until a municipality is constituted and on constitution of a municipality by such municipality in exercise of the powers conferred on it by or under this Act;

(i) all officers and servants in the employ of the dissolved panchayat immediately before the said date shall be officers and servants of the * * * municipality until a municipality is constituted and on constitution of a municipality, of such municipality under this Act, and shall, until other provision is made in accordance with this Act, receive salaries and allowances and be subject to the conditions of service to which they were entitled or subject on the said date :

Provided that it shall be competent to * * * * * * the municipality subject however to the previous sanction of the State Government, to discontinue the services of any officer or servant who, in its opinion, is not necessary or suitable to the requirements of the service of the interim municipality or, as the case may be, the municipality after giving such officer or servant such notice as is required to be given by the terms of his employment and every officer or servant whose services are discontinued shall be entitled to such leave, pension, provident fund and gratuity as he would have been entitled to take or receive on being invalided out of service as if the panchayat in the employ of which he was, had not ceased to exist;

(j) all proceedings pending at the said date before the dissolved panchayat shall be deemed to be transferred to, and continued by the interim municipality until a municipality is constituted and on constitution of a municipality such municipality;

(k) all appeals pending at the said date before the dissolved panchayat shall, so far as may be practicable, be disposed of as if the local area had been the municipal borough when they were tiled;

(l) all prosecutions instituted by or on behalf of the dissolved panchayat and all suits or other legal proceedings instituted by or against such panchayat or any officer of the dissolved panchayat pending at the said date shall be continued by or against the interim municipality until a municipality is constituted and on constitution of a municipality by or against such municipality as if the local area had been the municipal borough when such prosecutions, suits or proceedings were instituted;

(m) (i) the provisions of sub-sections (2) and (3) of section 282 of the Panchayats Act shall be deemed to apply in respect of any suits or cases pending before the dissolved Nyaya Panchayat or, as the case may be, which before the said date was being levied by the State Government under section 181 of the Panchayats Act in the local area shall cease to be so levied in the municipal borough after the end of the financial year in which the said date occurs except that as respects arrears of such tax, fee or cess at the end of the financial year, the provisions of section 7 of the Bombay General Clauses Act, 1904 shall apply as if the Panchayats Act had then been repealed by a Gujarat Act, in so far as the local area is concerned;

(g) all budget estimates, assessments, assessment lists, valuation or measurements made or authenticated under the Panchayats Act immediately before the said date in respect of the local area shall be deemed to have been made or authenticated under this Act;

(h) all debts and obligations incurred and all contracts made by or on behalf of the dissolved panchayat immediately before the said date and subsisting on that date shall be deemed to have been incurred and made by the 104 * * * municipality until a municipality is constituted and on constitution of a municipality by such municipality in exercise of the powers conferred on it by or under this Act;

(i) all officers and servants in the employ of the dissolved panchayat immediately before the said date shall be officers and servants of the 105 * * * municipality until a municipality is constituted and on constitution of a municipality, of such municipality under this Act, and shall, until other provision is made in accordance with this Act, receive salaries and allowances and be subject to the conditions of service to which they were entitled or subject on the said date :

Provided that it shall be competent to 106* * * * * * the municipality subject however to the previous sanction of the State Government, to discontinue the services of any officer or servant who, in its opinion, is not necessary or suitable to the requirements of the service of the interim municipality or, as the case may be, the municipality after giving such officer or servant such notice as is required to be given by the terms of his employment and every officer or servant whose services are discontinued shall be entitled to such leave, pension, provident fund and gratuity as he would have been entitled to take or receive on being invalided out of service as if the panchayat in the employ of which he was, had not ceased to exist;

(j) all proceedings pending at the said date before the dissolved panchayat shall be deemed to be transferred to, and continued by the interim municipality until a municipality is constituted and on constitution of a municipality such municipality;

(k) all appeals pending at the said date before the dissolved panchayat shall, so far as may be practicable, be disposed of as if the local area had been the municipal borough when they were tiled;

(l) all prosecutions instituted by or on behalf of the dissolved panchayat and all suits or other legal proceedings instituted by or against such panchayat or any officer of the dissolved panchayat pending at the said date shall be continued by or against the interim municipality until a municipality is constituted and on constitution of a municipality by or against such municipality as if the local area had been the municipal borough when such prosecutions, suits or proceedings were instituted;

(m) (i) the provisions of sub-sections (2) and (3) of section 282 of the Panchayats Act shall be deemed to apply in respect of any suits or cases pending before the dissolved Nyaya Panchayat or, as the case may be, before the Nyaya Panchayat continuing to function under sub-clause (i) of clause (b), in so far as such suits and cases relate to the area comprised in the gram, as if the District or Sessions Court, as the case may be, had passed an order under sub-section (1) of the said section 282 quashing such suits or cases: and (ii) all pending proceedings and applications for the execution of decrees or orders in suits and for the recovery of fines and compensation in cases shall be transferred to the Court of the Civil Judge of the lowest grade or the Court of the Magistrate, as the case may be, who would have had jurisdiction to try the suit or cases if the Nyaya Panchayat had not been constituted and such Civil Court or the Court of Magistrate, as the case may be, shall deal with the proceedings or applications as if the suit or case out of which the proceedings or applications arose, had been heard and decided by such Civil Court or the Court of such Magistrate;

(n) any law (other than the Panchayats Act) or any rule, bye-law, notification or order issued under such law, which was applicable to and in force in the nagar immediately before the said date shall continue to apply to and to be in force in the municipal borough until it is superseded.