Section 501(b) in Karnataka Municipal Corporations Act, 1976
(b)the rights and liabilities of the [Gramal Panchayat] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] in respect of civil and criminal proceedings, contracts, and other matters or things (including arrears of taxes, fees and cess) arising in or relating to the part of the area included in the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] shall vest in the corporation; and such rights and liabilities may be enforced by or against the corporation under this Act or the rules, bye-laws and orders made thereunder;