Consequences of replacement of existing councils

With effect on and from the appointed day, the following consequences shall ensue, that is to say ---

1. (a) every existing council shall be deemed to be succeeded by the council shown in the corresponding entry in column 3 of Schedule II (hereinafter referred to as the successor council);
2. (b) all property, movable and immovable, situated within the local area of a successor council (and all interests of whatever nature and kind in such property) which vested in the corresponding existing council immediately before the appointed day and which was being used immediately before the said day for the performance of any of the functions or duties which are required to be performed by the successor council under the provisions of this Act, shall be deemed to be transferred to and shall vest, without further assurances, in such successor council, subject to all limitations, conditions and rights or interests of any person, body or authority in force or subsisting immediately before the appointed day;
3. (c) all property, movable and immovable situated outside the local area of a successor council but within the jurisdiction of a village panchayat or commune panchayat council constituted under the Puducherry Village and Commune Panchayats Act, 1973 (and all interests of whatsoever nature and kind in such property) which vested in an existing council immediately before the constitution of such village panchayat or commune panchayat council for the performance of any of the functions or duties which are required to be performed by the said village panchayat or commune panchayat council under the provisions of the aforesaid Act, and are not required by the council for the performance of its duties under this Act, shall be deemed to be transferred to and shall vest, without further assurances, in such village panchayat or commune panchayat council, subject to all limitations, conditions and rights or interests of any person, body or authority in force or subsisting immediately before the appointed day;
4. (d) all property, movable and immovable wherever situated (and all interests of whatsoever nature and kind in such property) which vested in an existing council immediately before the appointed day and which was being used by it for a function which on and from the appointed day is not required to be performed by the successor council under the provisions of this Act or by a village panchayat or The section came into force on the 26th day of January, 1974 vide Extraordinary Gazette No. 11 dated 17th January 1974. commune panchayat council under the Puducherry Village and Commune Panchayats Act, 1973, shall be deemed to be transferred to and shall vest, without further assurances, in the Government, subject to all limitations, conditions and rights or interests of any person, body or authority in force or subsisting immediately before the appointed day;
5. (e) all rights, liabilities and obligations of an existing council (including those arising under an agreement or contract) shall be deemed to be the rights, liabilities and obligations of the corresponding successor council, the village panchayat or commune panchayat council or the Government, according as the function or duty out of which such rights, liabilities and obligation have arisen, is required to be performed on and from the appointed day by such successor council, village panchayat or commune panchayat council, or the Government, as the case may be; ‘
6. (f) all sums due to an existing council, whether on account of any tax or otherwise, shall be recoverable by the successor council, village panchayat or commune panchayat council, or the Government, according as the duty or function out of which such sum has become due, is required to be performed on and from the appointed day by the successor council, the village panchayat or commune panchayat council or the Government and the successor council, the village panchayat or commune panchayat council or the Government, as the case may be, shall be competent to take any measure or institute any proceedings, which it would have been open to the existing council or any authority thereof to that effect before the appointed day;
7. (g) the municipal fund and liabilities (other than those specified in the aforesaid clauses) of an existing council shall be deemed to be the municipal fund and liabilities of the successor council;
8. (h) all contracts made with and all instruments executed on behalf of an existing council, shall be deemed to have been made or executed on behalf of the successor council, the village panchayat or commune panchayat council or the Government according as the duty and function, as a result of which such contract was made or the instrument executed is required on and from the appointed day to be performed by the successor council, the village panchayat or commune panchayat council or the Government, as the case may be, and shall be performed accordingly;
   • (i) all proceedings and matters pending before any authority functioning under the repealed law immediately before the appointed day shall be deemed to be transferred to the corresponding authority under this Act competent to entertain and dispose of such proceedings or matters;
9. (j) in all suits and legal proceedings pending on the appointed day in or to which an existing council was a party, the successor council shall be deemed to have been substituted therefor;
10. (k) any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law, regulation or form held, made, issued imposed or granted by or in respect of an existing council under the repealed law and in force immediately before the appointed day, shall, in so far as it is not inconsistent with the provisions of this Act, continue to be in force until superseded by an authority competent so to do: Provided that ---
    • (i) no rule made under the repealed law in respect of an existing council and in force immediately before the appointed day shall be deemed to be inconsistent with the provisions of this Act by reason only of the fact that under this Act it is permissible to make only a bye-law or any other instrument other than a rule in respect of the matter provided for in such rule;
    • (ii) the provisions of clause (i) of this proviso shall as far as may be apply to any bye-laws, regulations, or any other instruments made under the repealed law in respect of an existing council and in force immediately before the appointed day;
11. (l) all budget estimates, assessments, assessment lists, valuations, measurements and divisions made by or in respect of an existing council under the repealed law and in force immediately before the appointed day, shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been made by, or in respect of, the successor council for that area;
12. (m) any reference in any law or in any instrument to any of the provisions of the repealed law shall, unless a different intention appears, be construed as a reference to the corresponding provision of this Act;
13. (n) any reference in any law or in any instrument to an existing council shall, unless a different intention appears, be construed as a reference to the successor council;
14. (o) any reference in the above clauses to an existing council shall, in case such council has been superseded or dissolved or is not otherwise functioning, be deemed to be a reference to the person or persons appointed to exercise the powers and discharge the duties and functions of such council. [“507-A. Persons by whom certain, functions or duties are to be performed or discharged.- Where any authority or functionary constituted or appointed under the repealed law was, immediately before such repeal, performing any function or was discharging any duty under that law or any other law, such function or duty shall be performed or discharged by the corresponding authority or functionary constituted or appointed under this Act: Deemed to have been inserted w.e.f. 26th January, 1974 by Regulation 8 of 1976, section 2. Provided that --(i) if any question arises as to who such corresponding authority or functionary is, or (ii) if there is no such corresponding authority or functionary, the Government may, by notification, direct as to which authority, or functionary shall perform such function or discharge such duty and any such direction may be given retrospective effect from a date not earlier than the appointed day”.]. ** 508. Provisions as to employees existing before the commencement of this Act.(1) Every officer and other employee of an existing council shall, on and from the appointed day, be transferred to and become an officer or other employee of the successor council with such designation as the Commissioner may determine and shall hold office by the same tenure, at the same remuneration and on the same terms and conditions of service as he would have held the same if the successor council had not been constituted and shall continue to do so unless and until such tenure, remuneration and terms and conditions are duly altered by the successor council: Provided that the tenure, remuneration and terms and conditions of service of any such officer or other employee shall not be altered to his disadvantage without the previous sanction of the Government: Provided further that any service rendered by any such officer or other employee before the appointed day shall be deemed to be service rendered under the successor council.

1. (2) The Commissioner may employ any officer or other employee transferred to the successor council under sub-section (1) in the discharge of such functions under this Act as the Commissioner may think proper and every such officer or other employee shall discharge those functions accordingly. ** The section came into force on the 26th day of January, 1974 vide Extraordinary Gazette No. 11, dated 17th January, 1974.
   • • 509. Obligation to carry out certain duties and functions of existing councils.Notwithstanding anything contained in section 67, it shall be the duty of every successor council to continue to carry out any duty or to manage, maintain or look after any institution, establishment, undertaking, measure, work or service, which the existing council had been responsible for carrying out managing, maintaining or looking after immediately before the appointed day, until the Government by order relieves the successor council of such duty or function.
   • • 510. Adjudication of disputes between local authorities.- (1) When a dispute exists between a council and one or more than one other local authority in regard to any matters arising under the provisions of this Act or any other Act and the Government is of opinion that the local authorities concerned are unable to settle it amicably among themselves, the Government may take cognizance of the dispute and ---
   • (a) decide it itself, or
   • (b) refer it to a joint committee constituted under section 73 for the purpose for inquiry and report.
2. (2) The report referred to in clause (b) of sub-section (1) shall be submitted to the Government which shall decide the dispute in such manner as it deems fit.
3. (3) (a) Any decision given, under clause (a) of sub-section (1) or under sub-section (2) may, at the instance of the local authorities concerned, be modified from time to time by the Government in such manner as it deems fit, and any such decision with the modifications, if any, made therein under this subsection, may, at the instance of such local authorities, be cancelled at any time by the Government.
   • (b) Any such decision or any modification therein or cancellation thereof shall be binding on each of the local authorities concerned and shall not be liable to be questioned in any court.