Power to suspend or cancel resolution under the Act :- (1) The State

Government may by order in writing—

1. (i) suspend or cancel any resolution of the municipality passed, order issued or licence or permission granted; or
2. (ii) prohibit the doing of any act which is about to be done or is being done, in pursuance of or under colour of this Act, if in their opinion —

1. (a) suchresolution, order, licence, permission or act has not been legally passed, issued, granted or authorised; or
2. (b) such resolution, order licence, permission or act is in excess of the powers conferred by this Act or any other law: or
3. (c) the execution of such resolution or order, or the continuance in force of such licence or permission of the doing of such act is likely to cause danger to human life, health or safety or is likely to lead to ariot or an affray; [or] *[(d) such resolution, order, licence, permission or act is gravely prejudicial to the financial interests of the municipality:] Provided that nothing in this sub-section shall enable the State Government to set aside any election which has been held.

1. (2) The State Government shall before taking action on any of the ground referred to in clauses (a) and (b) of sub-section (1) give the authority or person conferred an opportunity for explanation: [Provided that nothing in this sub-section shall apply to the suspension of any such resolution, order, licence or permission.]
2. (3) If in the opinion of the Magistrate of the district immediate action is necessary on any of the grounds referred to in clause (c) of sub-section (1), he may suspend the resolution, order, “[licence or permission, as the case may be, or prohibit the act from being done] and report to the State Government who may thereupon either rescind the order of the said Magistrate or after giving the authority or person concerned a reasonable opportunity of explanation direct that it continues in force with or without modification permanently or for such period as they think fit. 3[(4) Where any resolution passed or order issued by any Municipality is cancelled by the State Government under this section, the position prevailing immediately prior to the passing or issuing of such resolution or order, as the case may be, shall, unless 1. Added by the Orissa Act 16 of 1968, w.e.f. 01.08.1968 3. Added by the Orissa Act 11 of 1994, w.e.f. 31.05.1994 otherwise directed by the State Government, be restored with effect from the date of such cancellation.]

² Inserted by ibid.

⁴ Substituted by the Orissa Act 16 of 1968, w.e.f. 01.08.1968.

⁵ Inserted by the Orissa Act 23 of 1972, we.f. 30.12.1972.