Section 503(3) in Karnataka Municipal Corporations Act, 1976
(3)With effect from the date of declaration of any area as a [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] under sub-section (1), the following consequences shall ensue, namely:-(a)the body functioning as a [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council under the Karnataka Municipalities Act, 1964 immediately before the date of the said declaration in respect of the said area shall become a body competent to exercise the powers and perform the duties conferred by the provisions of the Act on a corporation in respect of the said area until a corporation is duly constituted for the area within the jurisdiction of such body under the provisions of this Act; 1. Substituted by Act 35 of 1994 w.e.f. 1.6.1994.(b)the councillors of the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council holding office as such immediately before the said date shall become councillors of the corporation;(c)the president of the said [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council shall become the Mayor of the corporation and discharge duties and perform functions of the Mayor under this Act and the vice-president of the said [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council shall become the Deputy Mayor of the said corporation under this Act;(cc)[ Where, under the provisions of section 315 or section 316 of the Karnataka Municipalities Act, 1964 either an administrator or an officer has been appointed, to exercise the powers and perform the duties of the Municipal Council, then, such administrator or officer shall be deemed to be an Administrator appointed under section 99 [x x x] [Inserted by Act 24 of 1978 w.e.f. 1.6.1977.]. [x x x] [Omitted by Act 35 of 1994 w.e.f. 1.6.1994.]. The advisory council, if any, appointed to advise and assist the administrator appointed under section 315 of the Karnataka Municipalities Act, 1964 shall be deemed to be an Advisory Committee appointed under sub-section (6) of section 99.](d)the unexpended balance of the municipal fund and the property (including arrears of rates, taxes and fees), belonging to the said [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council and all rights and powers which prior to the said declaration vested in the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council shall, subject to all charges and liabilities affecting the same, vest in the corporation as the corporation fund;(e)any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made or issued under any other law in respect of such municipality shall continue in force and be deemed to have been made issued or imposed under the provisions of this Act, unless and until it is superseded by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made or issued or imposed under this Act;(f)all budget estimates, assessment lists, valuation or measurements made or authenticated under the Karnataka Municipalities Act, 1964 immediately before the said date shall be deemed to have been made or authenticated under this Act;(g)all debts and obligations incurred and all contracts made by or on behalf of the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the corporation in exercise of the powers conferred on it by or under the Act;(h)all proceedings pending prior to the said declaration before the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council shall be continued by the corporation;(i)all appeals pending before any authority shall so far as may be practicable, be disposed of as if the said area had been included in the corporation when they were filed;(j)all prosecutions instituted by or on behalf of the city municipal council and all suits or other legal proceedings intituted by or against the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council or any officer of the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council pending at the said date shall be continued by or against the corporation as if such area had been included in the corporation when such prosecutions, suits or proceedings were instituted;(k)all officers and servants in the employ of the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council immediately before the said date shall become officers and servants of the corporation under this Act and shall, and until other provision is made in accordance with the provisions of this Act, receive salaries and allowances and be subject to the conditions of service to which they were entitled immediately before such date:Provided that it shall be competent to the corporation, subject to the previous sanction of the Government, to discontinue the services of any officer or servant, who, in its opinion, is not necessary or suitable for the requirements of the service under the corporation after giving such officer or servant such notice as is required to be given by the terms of his employment and every officer or servant whose services are dispensed with shall be entitled to such leave, pension, provident fund and gratuity as he would have been entitled to take or receive on being invalidated out of service, as if the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council in the employ of which he was, had not ceased to exist.
