360. Effect of absorption of a part of a [panchayat area into a smaller urban area] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.].
- If any part of an area within the limits of a [Grama Panchayat is included in a smaller urban area] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.], then, notwithstanding anything contained in this Act or in the [Karnataka Panchayat Raj Act, 1993] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.], but subject to the provisions of sub-section (3) of Section 4 of this Act, the following consequences shall ensue, namely:-(a)so much of the [Grama Panchayat Fund and other property vesting in the Grama Panchayat] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.] shall be transferred to the Municipal Fund as the Deputy Commissioner may, by order in writing, direct;(b)the rights and liabilities of the [Grama Panchayat] [Substituted by Act 36 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 any part of the area included in the [smaller urban area] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.] shall vest in the municipal council; and such rights and liabilities may be enforced by or against the municipal council under this Act or the rules, bye-laws and orders made thereunder;(c)such officers and servants of the [Grama Panchayat] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.] shall be transferred to the municipal council as the Government, by order, direct;(d)if the area included is an area in which not less than one thousand persons reside, until the reconstitution of the municipal council in accordance with the provisions of this Act, one person ordinarily resident in such area who is nominated by the Government shall be an additional councillor of the municipal council.
