(5)Where any area within the territorial jurisdiction of any local authority is constituted as Municipal Council or Town Council or included in such Municipal Council area or Town Council area, -(a)The provisions of this Act, except as the Government, by notification otherwise direct, all rules, regulations, notifications, orders, directions and powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in Municipal Council Areas or Town Council Areas shall apply to and shall be deemed to have been imposed in the area so constituted or included;(b)The Government may, by notification, issue such orders as it may deem fit(i)As the transfer to the Municipal Council or Town Council or disposal otherwise of the assets or institutions of such local authority in the area constituted or included, - and(ii)As to the discharge of the liabilities, if any, of such local authority relating to such assets or institutions.
