Power of Government to

1[dissolve] corporation.- (1) If in the opinion of Government the corporation is not competent to perform or makes default in the performance of any of the duties imposed on it or undertaken by it, by or under this Act or any other law for the time being in force or exceeds or abuses its powers or fails to carry out the directions or orders given by Government to it under this Act or any other law or is acting in a manner prejudicial to the interests of the corporation, the Government may, by an order published, together with a statement of the reasons therefor, in the official Gazette, declare the corporation to be incompetent or in default or to have exceeded or abused its powers, or to have failed to carry out the directions given to it, or to have acted in a manner prejudicial to the interests of the corporation, as the case may be, and may

1[dissolve it:] Provided that before making an order of

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

1[dissolution] as aforesaid reasonable opportunity shall be given to the corporation to show cause why such order should not be made.

1. (2) When the corporation is 1[dissolved] by an order under sub-section (1), the following consequences shall ensue,-
   • (a) all the councillors of the corporation shall, on such date as may be specified in the order, cease to hold office as such councillors without prejudice to their eligibility for election under sub-section (8);
   • (b) during the period of 1[dissolution] of the corporation, all powers and duties conferred and imposed upon the corporation and the standing committees of the corporation by or under this Act or any other law shall be exercised and performed by an Administrator appointed by Government in that behalf;
   • (c) all property vested in the corporation shall, until it is reconstituted, vest in Government.
2. (3) Government may direct that the Administrator shall be a whole-time officer and when such a direction is issued, he shall be paid out of the corporation funds such monthly salary and allowances as Government may from time to time, by order, determine and the corporation shall make such contribution towards the leave allowances, pension and provident fund of the officer as may be required by the conditions of service under the Government, to be paid by him or for him, as the case may be.
3. (4) During the period of 1[dissolution] of the corporation, references in any enactment or law for the time being in force to the Mayor of the corporation shall be construed as references to the Administrator appointed under clause (b) of sub-section (2).
4. (5) During the period of 1[dissolution] of the corporation, the Administrator shall in the discharge of his functions be guided by such directions in matters of policy involving public interest as the Government may by order specify; and if any question arises whether a direction relates to a

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.

matter of policy involving public interest the decision of the Government shall

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

be final.

1. (6) Government may, by notification, appoint an advisory committee consisting of not less than fifteen and not more then twenty-five persons who shall be qualified to become councillors under this Act to assist the Administrator. 1[(7) x x x] 1[(8) When a Corporation is dissolved it shall be reconstituted in the manner provided under this Act before the end of six months from the date of such dissolution: Provided that where the remainder of the period for which the dissolved Corporation would have continued is less than six months it shall not be necessary to hold an election under this section for constituting a Corporation for such period.
2. (9) A corporation constituted upon the dissolution before the expiration of its duration shall continue only for the remainder of the period for which the dissolved corporation would have continued had it not been so dissolved.]
3. (10) An order of 1[dissolution] of the corporation under sub-section (1) 2[x x x] together with a statement of the reasons therefor shall be laid before both Houses of the State Legislature as soon as may be after it is made.

¹ Omitted 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.

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