Effect of absorption of a smaller urban area or transitional area into a larger urban area

¹ Substituted by Act 35 of 1994 w.e.f. 1.6.1994.

*1 [501A. Effect of absorption of 2[a smaller urban area or transitional area into a larger urban area] .- If any local area comprised in a 2[smaller urban area or a transitional area] constituted or continued under the Karnataka Municipalities Act, 1964 (Karnataka Act 22 of 1964) or any other law is included in a 2[larger urban area] by virtue of a notification under sub- section (1) of section 4, then, notwithstanding anything contained in this Act or the Karnataka Municipalities Act, 1964 or any other law, but subject to the provisions of section 4, with effect from the date on which such area is included in the 2[larger urban area] , the following consequences shall ensue, namely:-

1. (a) the municipal council or the 2[town panchayat of such local area] (hereinafter referred to as the local authority) shall cease to exist; *1. Sections 501A to 501D Inserted by Act 28 of 1980 w.e.f. 10.9.1980.
2. (b) the unexpended balance of the fund of the local authority (including arrears of rates, taxes and fees) belonging to the local authority and all rights and powers which, prior to such notification, vested in the local authority shall, subject to all charges and liabilities affecting the same, vest in the corporation of the 1[larger urban area] (hereinafter referred to as the corporation);
3. (c) any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted under any law or rule immediately before the said date in respect of the said local authority shall continue in force and be deemed to have been made, issued, imposed or granted under this Act until it is superseded or modified by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law, or form made, issued, imposed or granted under this Act;
4. (d) all budget estimates, assessment lists, valuations or measurements, made or authenticated under any law or rule immediately before the said date in respect of the said local authority shall be deemed to have been made or authenticated under this Act;
5. (e) all debts and obligations incurred and all contracts made by or an behalf of the local authority immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the Corporation in exercise of the powers conferred on it by this Act;
6. (f) all officers and servants in the employ of the local authority immediately before the said date shall become officers and servants of the corporation under this Act and shall, until other provision is made in accordance with the provisions of this Act, receive salaries and allowances and be subject to the conditions of service to which they were entitled immediately before such date: Provided that it shall be competent to the corporation, subject to the previous sanction of the Government, to discontinue the services of any officer or servant who, in its opinion, is not necessary or suitable for the requirements of the service under the corporation 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 dispensed with 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 local authority in the employ of which he was, had not ceased to exist;
7. (g) all proceedings pending on the said date before the local authority shall be deemed to be transferred to and shall be continued before the corporation;
8. (h) all appeals pending before any authority shall, so far as may be practicable, be disposed of as if the said local area had been included in the 1[larger urban area] when they were filed;
   • (i) all prosecutions instituted by or on behalf of the local authority and all suits or other legal proceedings instituted by or against the local authority or any officer of the local authority pending on the said date shall be continued by or against the corporation as if the area of the said local authority had been included in the 1[larger urban area] when such prosecutions, suits or proceedings were instituted;
9. (j) all arrears of rates, taxes, and fees vesting in the corporation shall, notwithstanding that such rates and fees cannot be levied under this Act, be recoverable in the same manner as a tax recoverable under this Act;
10. (k) until the reconstitution of the corporation in accordance with the provisions of this Act, notwithstanding anything to the contrary contained in this Act, such number of persons as may be prescribed ordinarily resident in the area of the said local authority included in the 1[larger urban area] , who shall be nominated by the Government shall be additional councillors of the corporation.

² Substituted by Act 35 of 1994 w.e.f. 1.6.1994.

¹ Substituted by Act 35 of 1994 w.e.f. 1.6.1994.

¹ Substituted by Act 35 of 1994 w.e.f. 1.6.1994.

¹ Substituted by Act 35 of 1994 w.e.f. 1.6.1994.

¹ Substituted by Act 35 of 1994 w.e.f. 1.6.1994.