State Government's power to take action [in certain cases.] :- (1) If at

any time it appears to the Government that a municipality or its Chairperson or the Executive Officer has made default in performing any duty imposed by or under this or any other Act, they may, by order in writing, fix a period for the performance of such duty.

1. (2) If such duty is not performed within the period so fixed, the State Government may appoint some persons to perform it and may direct that the expenses of performing it, shall be paid from the Municipality Fund, as the case may be, within such time as they may fix, to such person by the municipality.
2. (3) If expenses which the State Government have directed under sub-section (2) to be paid from the Municipal Fund are not so paid, the Magistrate of the district, with the previous sanction of the State Government, may make an order directing the person having the custody of the Municipal Fund to pay it in priority to any other charge against such Fund except charges for the service of authorised loans.
3. (4) Such persons shall so far as the Funds to the credit of the municipality admit be bound to comply with such order. 3[(5) Without prejudice to the foregoing powers of the State Government, it shall be competent for the State Government to direct any Municipality for the execution of any work or the doing of any act within a specified time if, in their opinion, such work or action is necessary in the public interest, and if the Municipality fails to comply with such direction within the specified time, the State Government may direct the I. Inserted by the Orissa Act 16 of 1968, w.e.f. 01.08.1968. (@ THE ORISSA MUNICIPAL MANUAL execution or the doing of such work by any other authority or person, in which case the expenses therefor shall be realised from the Municipal Fund.] '[401. Dissolution and reconstitution of Municipality :- (1) If in the opinion of the State Government a municipality is incompetent to perform or persistently makes default in performing the duties imposed on it by law or exceeds or abuses its powers, they may, by notification published in the prescribed manner, direct that the Municipality be dissolved.
4. (2) Before publishing a notification under Sub-section (1), the State Government shall communicate to the Municipality the grounds on which they propose to do so, fix areasonable period for the Municipality to show cause against the proposal and consider the explanations and objections, if any, of the Municipality. 2[(3) On and with effect from the date of publication of such notification, all the Councillors including the Chairperson and Vice-Chairperson of the Municipality shall be deemed to have vacated their office as such and the election to constitute the Municipality in accordance with the provisions of this Act shall be completed before the expiration a period of six months from the said date: Provided that where the remainder of the period for which the dissolved Municipality would have continued is less than six months, it shall not be necessary to hold any election under this sub-section for constituting the Municipality for such period.]
5. (4) The Councillors including the Chairperson and Vice-Chairperson of the Municipality constituted on such dissolution shall continue only for the remainder of the period which the Councillors including the Chairperson and Vice-Chairperson of the dissolved Municipality would have continued had there been no such dissolution.
6. (5) During the interval between the dissolution of a municipality and the reconstitution thereof, all or any of the powers and duties of the Municipality and its Chairperson may be exercised and discharged, as far as may be, and subject to such extent, as the State Government may determine, by a person to be appointed by the State Government as the Administrator, and the Administrator so appointed may, if the State Government so direct, receive such payment for his services from the Municipal Fund as may be determined by them.] 402. 9% * %]

² Substituted by the Orissa Act 11 of 1994, w.e.f. 31.05.1994.

³ Inserted by the Orissa Act 11 of 1994, w.e.f. 31.05.1994.