Consequential provisions

Consequential provisions.

1. (1) Upon the dissolution of a gram panchayat or a nagar panchayat under section 3, the following consequences shall ensue, that is to say:—
   • (a) all property, movable and immovable, and all interests of whatsoever nature and kind therein, vested in the gram panchayat or nagar panchayat shall vest in the State Government until a municipality is constituted for the municipal district under the Municipal Act, and upon such constitution, shall vest in the municipality;
   • (b) all rights, liabilities and obligations of the gram panchayat or nagar panchayat (including those arising out of any contract or otherwise) shall be deemed to be the rights, liabilities and obligations of the State Government until the municipality is constituted as aforesaid, and upon such constitution, shall be deemed to be the rights, liabilities and obligations of the municipality;
   • (c) all proceedings pending before the gram panchayat or nagar panchayat or any authority thereof shall be deemed to be pending before the State Government or such officer or authority as the State Government may direct until the municipality is constituted as aforesaid and upon such constitution, shall be deemed to be pending before the municipality or the corresponding officer or authority of the municipality;
   • (d) all appointments, notifications, notices, taxes, orders, schemes, licences, permissions, rules, bye-laws, forms or instruments made or issued or imposed under the Panchayats Act in respect of the said local area and in force immediately before the specified date shall, in so far as they are not inconsistent with the provisions of the Municipal Act, continue to be in force and be deemed to have been made, issued or imposed under the provisions of the Municipal Act in respect of the said local area unless and until they are superseded by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law, form or instrument made, issued or imposed under the Municipal Act;
   • (e) all budget estimates, assessments, assessment lists, valuations or measurements made or authenticated under the Panchayats Act immediately before the specified date shall be deemed to have been made or authenticated under the Municipal Act;
   • (f) any arrears of taxes or other sums due to the gram panchayat or nagar panchayat immediately before the specified date shall be recoverable by the State Government or, as the case may be, by the municipality as if the said taxes or sums were due under the Municipal Act;
   • (g) the members of the gram panchayat or nagar panchayat shall vacate their office.
2. (2) If any difficulty arises in giving effect to the provisions of this Act, the State Government may, as the occasion requires, by order do anything which appears to it to be necessary for the purpose of removing the difficulty.