Section 503(3)(g) in Karnataka Municipal Corporations Act, 1976
(g)all debts and obligations incurred and all contracts made by or on behalf of the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] municipal council immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the corporation in exercise of the powers conferred on it by or under the Act;