- [(1) If in the opinion of the State Government, a Municipality 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 State Government may, by an order publish, alongwith reasons thereof, in the Official Gazette, dissolve such Municipality:Provided that a Municipality shall be given a reasonable opportunity of being heard before its dissolution.] [Substituted by Act No. 11 of 1994.](2)When a Municipality is dissolved under sub-section (1),-(i)all members of the Municipality shall vacate their offices forthwith;(ii)all powers and duties of the Municipality during its dissolution shall be exercised and performed by such person or authority, as the State Government may, by notification, appoint in this behalf; and(iii)all property in possession of the Municipality shall be held by the State Government.(3)Upon dissolution of a Municipality under sub-section (1) the State Government shall re-constitute a Municipality as specified under section 12 and election to reconstitute such Municipality 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 dissolved Municipality would have continued is less than six months, it shall not be necessary to hold any election under this sub-section for reconstituting the Municipality for such period.(4)The Municipality reconstituted upon the dissolution of the existing Municipality before the expiration of its duration, shall continue only for the remainder of the period for which the dissolved Municipality would have continued under section 13 had it not been so dissolved.
