Section 600(2)(h) in The Punjab Municipal Act, 1999
(h)all contracts made or liabilities incurred by, -(i)a Class-I, Class-II or Class-III Municipal Council or a Nagar Panchayat, constituted under the Punjab Municipal Act, 1911, and legally subsisting against the said Municipal Council, or the Nagar Panchayat shall, at the commencement of this Act, be deemed to have been made or incurred by the Class 'A' Municipal Council, Class 'B' Municipal Council or Class 'C' Municipal Council or the Nagar Panchayat as the case may be, constituted under this Act; and(ii)the Corporation constituted under the Punjab Municipal Corporation Act, 1976, and legally subsisting against the said Corporation shall at the commencement of this Act, be deemed to have been made or incurred by the Municipal Corporation of the City constituted under this Act;