Dissolution of council

(1) If, in the opinion of the Government,- (i) the municipality is not competent to perform or persistently makes default in performing the duties imposed on it by law or exceed or abuses its power; or (ii) that the meeting of the council could not be conducted for reasons beyond the control of the Chairperson and the affairs of the municipality could not be carried on in accordance with the provisions of this Act and a report to that effect has been received from the Chairperson by the Government. the government may, by notification,- (a) dissolve the municipality from a specified date; and (b) direct that the municipality be reconstituted with effect from a date which shall not be later than six months from the date of dissolution. (2) An election to reconstitute the municipality shall be completed before the expiration of a period of six months from the date of its dissolution. (3) Before publishing a notification under sub-section (1), the Government shall communicate to the council the grounds on which they propose to do so, and grant a period of not less than thirty days for the council to show cause against the proposal and consider its explanations or objections, if any. (4) Nothing contained in sub-section (1) shall affect the office of the Commissioner. (5) On the date fixed for the dissolution of the council under sub-section (1), all its members as well as the Chairperson, the Deputy Chairperson (including councillors who are members of committees established or constituted by or under this Act) shall forthwith be deemed to have vacated their offices and the persons referred to in clauses (ii) and (iii) of sub-section (1) of section 37 shall cease to be represented in the council and fresh elections shall be held in accordance with the provisions of this Act. (6) Dissolution shall take effect from the date specified in the notification and if no date is specified in the notification, from the date of publication of the notification and thereupon the following consequences shall ensue:- (a) all the members of the council; as well as the Chairperson, the Deputy Chairperson (including councillors who are members of committees established or constituted by or under this Act) shall forthwith be deemed to have vacated their offices; (b) all or any of the functions of the council, of the Chairperson and of the committee established or constituted by or under this Act except the Taxation Appeals Committee may, during the period of dissolution, be exercised and performed, as far as may be, and to such extent as the Government may determine, by the Special Officer appointed under section 54 in that behalf. The Government may determine the relations of such person with themselves. (7) The Government may reconstitute the Council before the expiry of period notified under sub-section (1). (8) All the newly elected councillors of the reconstituted municipality shall enter upon their offices on the date fixed for its reconstitution and they shall hold their offices only for the remainder of the period for which the dissolved municipality would have continued under section 37, had it not been dissolved. (9) When the council is dissolved under this section, the Government until the date of the reconstitution thereof and the reconstituted council thereafter shall be entitled to all the assets and be subject to all the liabilities of the council on the date of dissolution and on the date of the reconstitution, respectively.