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 or any other Act and the Government are of the 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 on its own volition; or (b) refer it for inquiry and report to a joint committee constituted under section 41 for the purpose. (2) The report referred to in clause (b) of sub-section (1) shall be submitted to the Government who shall decide the dispute in such manner as they may deem fit. (3) Any decision given, whether before or after this sub-section comes into force, 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 they deem fit, and any such decision with the modifications, if any, made therein under this sub-section, may, at the instance of local authorities be cancelled at any time by the Government. 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 of Law. (4) The powers of the Government under this section shall, where one of the local authorities concerned is a cantonment authority or the port authority of a major port, only be exercisable with the concurrence of the Central Government.