Disposal of assets and liabilities

(1) Where any local area which is within the jurisdiction of any other local authority is constituted as or included in a municipality, the Government may pass such orders as they may deem fit as to the transfer to such municipality, or disposal otherwise, of the assets or institutions of any such local authority in the local area and as to discharge of the liabilities, if any, of such local authority relating to such assets or institutions. (2) Where any local area is excluded from a municipality and included within the jurisdiction of any other local authority, the Government may pass such orders as they deem fit, as to the transfer to such local authority or disposal otherwise, of the assets or institutions of such municipality in the local area and as to the discharge of the liabilities, if any, of such municipality relating to such assets or institutions.