- A municipal council shall be competent to make any agreement with any person in respect of any matter which is to be provided for in a town-planning scheme subject to the power of the [State Government] [Throughout the Act, the words 'Provincial Government' were substituted for the words 'Local Government' by the Adaptation Order, 1937, and the word 'State' was substituted for 'Provincial' by the Adaptation Order, 1950.] to modify or disallow such agreement, and, unless it is otherwise expressly provided therein, such agreement shall take effect on and after the day on which the scheme comes into force:Provided that if the agreement be modified by the [State Government] [Throughout the Act, the words 'Provincial Government' were substituted for the words 'Local Government' by the Adaptation Order, 1937, and the word 'State' was substituted for 'Provincial' by the Adaptation Order, 1950.], either party shall have the option of avoiding it if he so elects within the prescribed period.
