Effect of absorption of part of a transitional area into a smaller urban area.

[Content provided in document header: Effect of absorption of part of a transitional area into a smaller urban area.] Any part of a local area comprised in a transitional area may be included in a smaller urban area and when it is so included with effect from the date on which such area is included in the smaller urban area, the following consequences shall ensue, namely:— (a) so much of the funds and other property vesting the Town Panchayat shall be transferred to the Municipal funds as the Government may, by order, in writing, direct; (b) the rights and liabilities of the Town Panchayat in respect of civil and criminal proceedings, contracts and other matters or things (including arrears of tax, fees and cess) arising in, or relating to, the part of the area included in the smaller urban area shall vest in the Municipal Council and such rights and liabilities may be enforced by or against the Municipal Council under this Act or the rules, bye-laws and orders made thereunder; (c) such officers and servants of the Town Panchayat as the Government may, by order, direct shall be transferred to the Municipal Council and the officers and servants so transferred 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 or subject immediately before such transfer.