(1)When a dispute exists between a [Municipality] [Substituted vide Orissa Act No. 11 of 1994 w.e.f. 31.5.1994.] and one or more other local authorities in regard to any matter arising under the provisions of this or any other Act and the State Government are of opinion that the local authorities concerned are unable to settle it amicably among themselves, the State Government may take cognizance of the disputes; and(a)decide it themselves; or(b)refer it for inquiry and report to an Arbitrator or to a joint Committee constituted under Section 61 for the purpose.