Chapter VI CONVERSION OF SMALLER URBAN AREA OR A TRANSITIONAL AREA AND AMALGAMATION

114. Interpretation. - For the purpose of this charter, unless the context otherwise requires, - 94 (a) "municipal council" includes a person or persons appointed to exercise the powers and to perform the functions of municipal council; 1[(b) "Town Panchayat" means a Town Panchayat constituted under section 350 of the Karnataka Municipalities Act, 1964;]1 1. Clause (b) and (c) Substituted by Act 29 of 1997 w.e.f. 20.10.1997. (c) "Grama Panchayat" includes a person or persons appointed to exercise the powers and to perform the functions of a Grama Panchayat under secti on 8.

115. Effect of conversion of a 1[smaller urban area or a transitional area into panchayat area]1.- (1) Notwithstanding anything contained in this Act or any other law for the time being in force, the Government may, after previous publication by no tification, direct that the local area constituting 1[any smaller urban area]1 shall from such date as may be specified therein (hereinafter referred to as the specified date), be a panchayat area and in respect thereof, on and from such specified date, th e following consequences shall ensue, namely: - (a) the Municipal Council of such local area shall cease to exist or to function; (b) there shall be constituted for the panchayat area an interim Grama Panchayat consisting of persons vacating office as councillors of the municipality and the President and Vice President of Municipal Council shall be deemed to be the Adhyaksha and Upadhyaksha of the interim Grama Panchayat; (c) the unexpended balance of the municipal fund and the property (including arrears of rates, taxes and fees) belonging to the Municipal Council and all rights and powers which, prior to such notification, vested in the Municipal Council shall, subject to all charges and liabilities affecting the same vest in the interim Grama Panchayat as the Grama Panchayat Fund until a new Grama Panchayat is constituted in pursuance of the provisions of sub -section (1) of section 116; (d) any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye -law or form made, issued, imposed or granted under the municipal law before the specified date in respect of such local area shall continue in force and be deemed to have been made, issued, imposed or granted in respect of t he panchayat area until it is superseded or modified by any appointment, notification, notice, tax, order, scheme, licence, bye-law or form made, issued, imposed or granted under this Act; (e) all budget estimates, assessments, assessment lists, valuatio n or measurements made or authenticated under the municipal law immediately before the specified date in respect of such local area shall be deemed to have been made or authenticated under this Act; (f) all debts and obligations incurred and all contract s made by or on behalf of the Municipal Council before the specified date and subsisting on the specified date shall be conferred on it by this Act; (g) all officers a nd servants in the employ of the Municipal Council immediately before the specified date shall be officers and servants of the Grama Panchayat under this Act, and shall, until other provision is made in accordance with the provisions of this Act, receive s alaries and allowances and subject to the conditions of service to which they were entitled or subject immediately before such date: 95 Provided that it shall be competent to the Grama Panchayat subject to the previous sanction of the Government to discontin ue the services of any officer or servant who, in its opinion, is not necessary or suitable to the requirements of the Grama Panchayat service after giving such officer or servant such notice as is required to be given by the terms of his employment and ev ery 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 invalidated out of service as if the Municipal Council in the employ o f which he was, had not ceased to exist; (h) all proceedings pending immediately before the specified date before the Municipal council shall be deemed to be transferred to and be continued before the Grama Panchayat; (i) all appeals pending immediatel y before the specified date before the Municipal Council shall , so far as may be practicable, be disposed of as if such local area had been included in the Grama Panchayat when they were filed; (j) all prosecutions instituted by or on behalf of the Muni cipal Council and all suits or other legal proceedings instituted by or against such Municipal Council or any officer of such municipal council pending immediately before the specified date shall be continued by or against the Grama Panchayat as if such lo cal area had been included in the panchayat area when such prosecution, suits or proceedings were instituted. (2) The provisions of sub -section (1) shall, mutatis mutandis , apply for the 1[conversion of a transitional area into a panchayat area.]1 1. Subs tituted by Act 29 of 1997 w.e.f. 20.10.1997.

116. Term of office of members of interim Grama Panchayat and their powers. - (1) The Government shall take steps to hold election for a new Grama Panchayat within a period not exceeding five years from the dat e on which the interim Grama Panchayat has been constituted under section 115: Provided that where an interim Grama Panchayat has been constituted to a panchayat area converted under section 115 prior to the date on which the first elections to the Grama Panchayats are held under this Act, no election to constitute a new Grama Panchayat for such area shall be held before the date on which the unexpired portion of the term of office of the 1[councillors of municipal council or Town Panchayat]1, as the case may be, would have ended: Provided further that nothing in the above provision shall apply to a panchayat area, the limits of which are altered by including within such panchayat area any village or gro up of villages. (2) The members of the interim Grama Panchayat shall hold office until the date immediately preceding the date of first meeting of the new Grama Panchayat. (3) Any vacancy in the office of the interim Grama Panchayat shall be filled, as soon as may be, by appointment by the Deputy Commissioner. (4) All arrears of rates, taxes and fees vesting in the interim Grama Panchayat shall, notwithstanding that such rates, taxes and fees cannot be levied under this Act, be recoverable in the same manner as a tax levied under section 199 of this Act: Provided that the steps to recover arrears of rates, taxes and fees shall be taken within a period of three years from the date on which they vest in the interim Grama Panchayat. 96 (5) In other respect, the provisions of this Act shall, mutatis mutandis apply to the interim Grama Panchayat and its members. (6) If any difficulty arises, - (i) in the constitution of the interim Grama Panchayat or the new Grama Panchayat which succeeds it, or (ii) in giving effect to the provisions of section 115 and this section, the Government may, by order not inconsistent with the provisions of this Act, remove the difficulty.

1[117. Effect of amalgamation of panchayat areas. - (1) When 2[during the term of office o f members of Grama panchayats, two or more contiguous panchayat areas]2 are amalgamated and declared to be a panchayat area (hereinafter in this section referred to as the amalgamated panchayat area) by virtue of a notification under section 4 2[notwithsta nding anything contained in this Act, with effect from]2 the date on which such notification is issued (hereinafter in this section referred to as the specified date), the following consequences shall ensue, namely. - 1. Subsection 1 to 10 Substituted by Ac t 10 of 1997 w.e.f. 14.8.1997. (a) the Grama Panchayats of such local area (hereinafter in this section referred to as the existing Grama Panchayats) shall cease to exist and all the members of such Gram a Panchayats shall vacate office; (b) There shall be constituted for the amalgamated panchayat area a Grama Panchayat (hereinafter in this section referred to as interim Grama Panchayat) consisting of members nominated by the Deputy Commissioner and suc h members shall, as far as may be practicable be persons who are the members of the existing Grama Panchayats; 1[(c) The Adhyaksha and Upadhyaksha of the interim Grama Panchayat and the members of the Standing Committee shall be elected in the manner pro vided in this Act, within one month from the specified date; 1. Clause (c) (d) substituted by Act 29 of 1997 w.e.f. 20.10.1997. (d) The members of the interim Grama Panchayat so constituted, shall subject to the provisions of sections 12, 13, 43 and 43 -A hold office for the remainder of the period for which all the existing Grama Panchayats would have continued or where the remainder of the period is different in respect of different existing Grama Panchayats, till the remainder of the period of the last of such existing Grama Panchayats would have expired had there not been amalgamation of panchayat areas under this section.]1 (e) Before the expiry of the term of the interim Grama Panchayat in accordance with the provisions of clause (d), a Grama Pancha yat (hereinafter referred to as the amalgamated Grama Panchayat) shall be constituted in the manner provided in this Act; 1[(f) x x x]1 (2) When an amalgamated Grama Panchayat is constituted under this sec tion so much of the Grama Panchayat fund and other property vesting in the existing Grama Panchayats shall vest in and such portion of the debts and obligations shall be transferred to, the Grama panchayat established under this section as the Deputy Comm issioner may by order direct. 97 (3) The rights and liabilities of the existing Grama Panchayats in respect of civil and criminal proceedings, contracts, agreements and matters or things arising in and relating to amalgamated panchayat area shall vest in the Grama panchayat established under this section. (4) All budget estimates, assessment and assessment list, valuation or measurements made or authenticated by the existing Grama Panchayats before the specified date shall be in respect of amalgamated panchayat area. (5) Any appointment, notification, notice, tax, order, scheme, licence permission, rule, regulation, bye -law or form made, issued, imposed or granted in resp ect of such local areas and in force on the specified date shall continue in force and be deemed to have been made, issued or granted in respect of the amalgamated panchayat area until it is suspended or modified by any appointment, notification, notice, t ax, order, scheme, licence, permission, rule, regulation, bye -law or form made, issued, imposed or granted under this Act. (6) All officers and servants in the employ of the existing Grama Panchayats immediately before the specified date shall be officer s and servants of the Grama Panchayat constituted in respect of the amalgamated panchayat area and shall until such other provision is made in accordance with this Act, receive salaries and allowances and be subject to conditions of service to which they were entitled or subject immediately before such date: Provided that it shall be competent for the interim Grama Panchayat or the amalgamated Grama Panchayat, as the case may be, subject to the previous sanction of the Deputy Commissioner to discontinue the services of any officer or servant who, in its opinion, is not necessary or suitable to the requirements of the Grama Panchayat service in respect of the amalgamated panchayat area, after giving the 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 so discontinued shall be entitled to such leave, pension, and gratuity as he was entitled to take or receive on being invalidated out of service, as if the Grama Panchayat , in the employ of which he was, had not ceased to exist. (7) All proceedings pending immediately before the specified date before the existing Grama Panchayats shall be deemed to be transferred to and continued before the interim Grama Panchayat or the a malgamated Grama Panchayat, as the case may be. (8) All appeals pending before the existing Grama Panchayats immediately before the specified date shall, so far as may be practicable, be disposed of by the interim Grama Panchayat or the amalgamated Grama Panchayat, as the case may be. (9) All prosecutions instituted by or on behalf of the existing Grama Panchayats or any officer of such Grama Panchayats, pending immediately before the specified date shall be continued by or against the interim Grama Panch ayat or the amalgamated Grama Panchayat, as the case may be. (10) If any difficulty arises in giving effect to the provisions of the preceding sub -sections the Government may, as occasion requires, by order published in the official Gazette do anything w hich appears to it to be necessary to remove the difficulty.]1

1[118. Effect of division of panchayat area. - (1) When during the term of office of the members of a Grama Panchayat any local area comprised within the limits of a panchayat area ceases to b e a panchayat area, and is declared as constituting two or more new panchayat areas by virtue of notification under section 4, notwithstanding anything contained 98 in this Act, with effect from the date on which such notification is issued (hereinafter in th is section referred to as the specified date) the following consequences shall ensue, namely: - (a) the Grama Panchayat constituted in respect of such local area (hereinafter referred to as the existing Grama Panchayat) shall cease to exist and all the members of such Grama Panchayat shall vacate office; (b) there shall be constituted for the new panchayat areas, Grama Panchayats (hereinafter in this section referred to as interim Grama Panchayats) con sisting of members nominated by the Deputy Commissioner and such members shall as far as may be practicable be persons who are the members of the existing Grama Panchayat: Provided that if as on the specified date there were no elected members in the exis ting Grama Panchayat the Deputy Commissioner may by order appoint such person (hereinafter referred to as the Administrator) to exercise all powers and perform all duties of the Grama Panchayat, for such period but not exceeding six months as he may speci fy; (c) the Adhyaksha and Upadhayksha of the interim Grama Panchayat and the members of the standing committee shall be elected in the manner provided in this Act, within one month from the specified date; (d) the members of the interim Grama Panchayat so constituted shall subject to the provisions of sections 12, 13, 43 and 43 -A hold office for the unexpired portion of their term of office in the existing Grama Panchayat; (e) before the expiry of the term of office of the members of the interim Grama Panchayat or the expiry of term of the Administrator in accordance with the provisions of clause (b) or (d), Grama Panchayats (hereinafter referred to as new Grama Panchayats) for each of the new panchayat areas shall be constituted in the manner provided in this Act. (2) When the new panchayat areas are declared under this section so much of the Grama Panchayat fund and other property vesting in the existing Grama Panchayat shall vest in and such portion of the debts and obligations shall be transferred to, the Grama Panchayats established or the Administrator appointed under this section as the Deputy Commissioner may by order direct. (3) The rights and liabilities of the existing Grama Panchayat in respect of civil and criminal proceedings, contracts, agreements and matters or things arising in and relating to such local area declared as new panchayat areas shall vest in the Grama Panchayat constituted or the Administrator appointed under this section as the Deputy Commissioner may by order direct. (4) All budget estimates, assessment and assessment lists, valuation or measurements made or authenticated by the existing Grama Panchayat before the specified date shall be establi shed for the new panchayat areas, as the Deputy Commissioner may by order direct. (5) Any appointment, notification, notice, tax, order, scheme, licence, permission, rule, regulation, bye -law or form made, issued, imposed or granted in respect to such loc al areas and in force on the specified date shall continue in force and be deemed to have been made, issued or granted in respect of such new panchayat area as the Deputy Commissioner may by order direct until it is superseded or modified by any appointmen t, notification, notice, tax, scheme, licence, permission, rule, regulation, bye -law or form made issued, imposed or granted under this Act, 99 (6) All officers and servants in the employ of the existing Grama Panchayat immediately before the specified date shall be officers and servants of Grama Panchayats constituted in respect of new panchayat areas as the Deputy Commissioner may by order direct and shall until such other provision is made in accordance with this Act, receive salaries and allowances and be subject to conditions of service to which they were entitled or subject immediately before such date: Provided that it shall be competent for the interim Grama Panchayat, Administrator or the new Grama Panchayats, as the case may be, subject to the previ ous sanction of the Deputy Commissioner to discontinue the services of any officer or servant who in its or his opinion is not necessary or suitable to the requirements of the Grama Panchayat service in respect of the new panchayat area, after giving the o fficer or servant such notice, as is required to be given by the terms of his employment and every officer or servant whose services are so discontinued shall be entitled to such leave, pension and gratuity as he was entitled to take or receive on being in validated out of service as if the Grama Panchayat in the employ of which he was, had not ceased to exist. (7) All proceedings pending immediately before the specified date before the existing Grama Panchayats shall be deemed to be transferred to, and con tinue before, such of the interim Grama Panchayat or the Administrator or the new Grama Panchayats, as the case may be, as the Deputy Commissioner may by order direct. (8) All appeals pending before the existing Grama Panchayat immediately before the spec ified date shall so far as may be practicable be disposed off by such of the interim Grama Panchayats or the Administrator or the new Grama Panchayats, as the case may be, as the Deputy Commissioner may by order direct. (9) All prosecutions instituted by or on behalf of the existing Grama Panchayat pending immediately before the specified date shall be continued by or on behalf of such of the interim Grama Panchayats or the Administrator or of the new Grama Panchayats, as the case may be, as the Deputy Com missioner may by order direct. (10) If any difficulty arises in giving effect to the provisions of the preceding sub -sections the Government may, as occasion requires, by order published in the official Gazette, do anything which appears to it to be neces sary to remove the difficulty.]1 CHAPTER VII CONSTITUTION OF TALU K PANCHAYAT