(1)If the State Government at any time declares that the provisions of the Canals Act, 1864 (Ben. Act. VII of 1864). or any other similar law for the time being in force. are applicable to any navigable channel which passes through the limits of a municipal area it may, with the consent of the Board of Councilors of such Municipality, appoint it to collect tolls in accordance with the provisions of section 8 of the said Act until the State Government otherwise directs, and the profits derivable therefrom or such part thereof as may be agreed upon between the State Government and the Board of Councilors, shall be credited to the Municipal Fund.
