Dissolution of Corporation

Dissolution of Corporation. (1) If in the opinion of the Government, a Corporation is not competent to perform its duties or persistently makes default in the performance of duties imposed on it by or under this Act or any other law for the time being in force or exceeds or abuses any of its powers, the Government may, by an order published, alongwith the reasons therefor, in the Official Gazette, dissolve such Corporation : Provided that the Corporation shall be given a reasonable opportunity of being heard before its dissolution. (2) When a Municipal Corporation is dissolved under sub-section (1), -(i) all Councillors of the Corporation shall vacate their offices forthwith; (ii) all powers and duties of the Corporation during its dissolution shall be exercised and performed by such person or authority, as the Government may, by notification, appoint in this behalf ; and (iii) all property in possession of the Corporation shall be held by the Government. (3) Upon dissolution of a Corporation under sub-section (1), the Government shall reconstitute a Corporation as specified under sub-section (2) of Section 3, and election to reconstitute such Corporation shall be completed before the expiration of a period of six months from the date of dissolution: Provided that where the remainder of the period for which the dissolved Corporation would have continued, is less than six months, it shall not be necessary to hold any election under this sub-section for reconstituting the Corporation for such period. (4) The Corporation reconstituted upon the dissolution of the existing Corporation before the expiration of its duration, shall continue only for the remainder of the period for which the dissolved Corporation would have continued under section 7 had it not been so dissolved.