Section 424(1) in Jammu and Kashmir Municipal Corporation Act, 2000
(1)All assets and properties vesting in, all debts, liabilities and obligation incurred by and all contract made by, or on behalf of the municipality including area comprising rural area or a part thereof, if any, declared and constituted to be a Corporation under section 3 and 4 of this Act, be deemed to have been vested in, to have been incurred and made by the Corporation and shall continue in operation accordingly.
