(1)The State Government may, by notification, abolish any municipality declared under section 3.(2)When a notification is issued under this section in respect of any municipality, this Act, and all notifications, rules, bye-laws, orders, directions and powers issued, made or conferred under this Act, shall cease to apply to the said municipality; the balance of the municipal fund and all other property at the time of the issue of the notification vested in the committee shall vest in the State Government and the liabilities of the committee shall be transferred to the State Government.(3)[ Where any municipality is abolished under sub-section (1) and subsequently the area comprising the municipality so abolished is declared to be a Sabha area under sub-section (1) of Section 4 of the Punjab Gram Panchayat Act, 1952, the assets and liabilities referred to in sub-section (2) shall vest in the Gram Panchayat of the Sabha area from the date of its establishment under section 5 of the Punjab Gram Panchayat Act, 1952.Explanation. - For the purposes of this sub-section, the assets shall include all arrears of taxes, tolls, cesses, rates, dues and fees imposed under this Act or any rule or bye-law which fell due to the committee of the municipality immediately before the date of its abolition and the same shall be recoverable by the Gram Panchayat as if these were arrears due to the Gram Panchayat.] [Sub-section (3) inserted by Haryana Act 12 of 1979.]
