Effect of conversion of transitional area into a smaller urban area.

[Content provided in document header: Effect of conversion of transitional area into a smaller urban area.] (1) Subject to the provisions of section 3, the Governor may declare, by notification that any transitional area shall with effect from the date to be specified in such notification be a smaller urban area constituted under section 3 of this Act. (2) The provisions of this Act applicable to such transitional area shall not apply to any local area declared as smaller urban area in sub-section (1) with effect from the date specified in the declaration: Provided that any appointment, notification notice, tax order, scheme, licence, permission, rule, bye-law or form made or issued or imposed under this Act in respect of such Town Panchayat which were in force as applicable immediately before the date specified under sub-section (1) shall continue in force and be deemed to have been made, issued or imposed under the provisions of this Act, in respect of a Municipal Council unless and until it is superseded by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made or issued or imposed under this Act. (3) With effect from the date of declaration of any area as a smaller urban area, under sub-section (1), the following consequences shall ensue, namely:— (a) the body functioning as a Town Panchayat under this Act, immediately before the date of the said declaration in respect of the said area shall become a body competent to exercise the powers and perform the duties conferred by the provisions of this Act on a Municipal Council in respect of the said area until a Municipal Council is duly constituted for the area within the jurisdiction of such body under the provisions of this Act; (b) the Councillors of the Town Panchayat holding office as such immediately before the said date shall become Councillors of the Municipal Council; (c) the President of the said Town Panchayat shall become the President of the Municipal Council and discharge duties and perform functions of the President under this Act and the Vice-President of the said Town Panchayat shall become the Vice-President of the said Municipal Council under this Act; (d) where, under the provisions of section 315 or section 316 either an administrator or an officer has been appointed, in respect of such Town Panchayat to exercise the powers and perform the duties of the Town Panchayat, then, such administrator or officer shall be deemed to be an Administrator appointed in respect of the Municipal Council; (e) the unexpended balance of the Town Panchayat fund and the property (including arrears of rates, taxes and fees) belonging to the said Town Panchayat and all rights and powers which prior to the said declaration vested in the Town Panchayat shall, subject to all charges and liabilities affecting the same, vest in the Municipal Council as the municipal fund; (f) any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made or issued or imposed under this Act in respect of such Town Panchayat shall continue in force and be deemed to have been made, issued or imposed under the provisions of this Act, in respect of a Municipal Council, unless and until it is superseded by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made or issued or imposed under this Act; (g) all budget estimates, assessment lists, valuation or measurements made or authenticated under this Act in respect of the Town Panchayat immediately before the said date shall be deemed to have been made or authenticated under this Act in respect of the said Municipal Council; (h) all debts and obligations incurred and all contracts made by or on behalf of the Town Panchayat immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the Municipal Council in exercise of the powers conferred on it by or under this Act;