Provided that the Special Officer or Administrative Committee so appointed shall exercise the powers and perform the functions subject to the general or special direction of the Government.

Adjudication of disputes between local authorities Adjudication of disputes between local authorities.—

1. (1) Where a dispute exists between any Municipality and any Panchayat or between or among Municipalities with regard to any matter arising under the provisions of this or any other Act and the parties are of opinion that they are unable to settle it amicably among themselves, the Government may take cognizance of the dispute, and—
   • (a) decide it themselves; or
   • (b) refer it to the Tribunal constituted under Section 271 of the Kerala Panchayat Raj Act, 1994 (13 of 1994) or to the Joint Committee constituted under Section 45 and report;
2. (2) The report referred to in clause (b) of sub-section (1) shall be submitted to Government who shall decide the dispute in such manner as they deem fit and such decision shall be binding on the disputing parties.