(2)If on the appointed day, any suit, appeal or other legal proceeding of whatever nature is pending by or against a local authority referred to in sub-section (1) of section 50, then in so far as it relates to the service of such local authority, it shall not abate, be discontinued or be in any way prejudicially affected by reason of the transfer of the assets and liabilities of the local authority in so far as they relate to such service, but the suit, appeal or other proceeding may be continued, prosecuted or enforced by or against the Government.
