122. Disposal of municipal fund when 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.].
(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.(2)When in like manner, 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 not 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 the [State Government] [Substituted by ALO 1950.], and such portion of the liabilities of the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall be transferred to the [State Government] [Substituted by ALO 1950.], as the State Government after consulting the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] and considering any representation made by the inhabitants of the excluded area, declares by notification.(3)Provided that where an excluded area is placed under the control of local a local authority not existing at a date previous to the exclusion, the [State Government] [Substituted by ALO 1950.], before making a declaration under sub-section (1), shall take into consideration any representation made by the inhabitants of the excluded area.(4)Provided also that the foregoing provisions of this section shall not apply in any case where the circumstances, in the opinion of the [State Government] [Substituted by ALO 1950.] render undesirable the transfer of any portion of the municipal fund or liabilities.
