Assets, liabilities, debts, obligations, contracts and pending proceedings

(1) All assets and properties vesting in, all debts, liabilities and obligations incurred by, and all contracts made by or on behalf of, the municipal committee or local authority for the area which has been constituted to be a City or which has been included in a City and subsisting on the day on which it is so constituted or included shall, in so far as they relate to the area so constituted or included, be deemed to have been vested in, to have been incurred and made by, the Corporation and shall continue in operation accordingly. (2) All proceedings pending before any authority of the said municipal committee