Section 122(1) in The U.P. Municipalities Act, 1916
(1)When, by reason of a notification under Section 3, any local area ceases to be included in a [transitional area or a smaller urban area, as the case may be,] [Substituted by U.P. Act No. 12 of 1994.] and is immediately placed under the control of some other local authority such portion of the municipal fund and other property vesting in the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall vest in that other local authority, and such portion of the liabilities of that [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall be transferred to that other local authority, as the [State Government] [Substituted by ALO 1950.] after consulting the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] and that other local authority, declares by notification.
