Section 7 in The Chhattisgarh Municipalities Act, 1961
7. Effect of establishing Municipality for local area which ceases to be Town Area or Panchayat.
- When any local area ceases to be a Town Area under the Bhopal State Town Area Act, 1954 (XIV of 1954), or a Panchayat under the Panchayat Law and immediately following such cessation a Municipality is established under Section 5 for such area, then, as from the date of the establishment of the Municipality (hereinafter in this section referred to as the specified date) the following consequences shall ensue, namely:-(a)the Town Area Committee or the Panchayat, as the case may be, shall cease to exist;(b)there shall be constituted a Committee in accordance with the provision of Section 15 to exercise the powers of the Council pending its constitution;(c)the unexpanded balance of the Town Area Fund or the Panchayat Fund and the property (including arrears of rates, taxes, rents and fees) belonging to the Town Area Committee or the Panchayat and all rights and powers which prior to such notification were and vested in the Town Area Committee or the Panchayat shall, subject to all charges and liabilities affecting the same vest in the Committee until a Council is constituted under this Act;(d)any appointment, notification/notice, tax, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted under the Bhopal State Town Area Act, 1954 (XIV of 1954), or the Panchayat Law before the specified date in respect of such local area shall, so far as it is not inconsistent with the provisions of this Act, continue to be in force and be deemed to have been made, issued, imposed or granted in respect of the Municipality until it is superseded or modified by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted under this Act;(e)all budget estimates, assessment list, valuation or measurement made or authenticated under the Bhopal State Town Area Act, 1954 (XIV of 1954), or the Panchayat Law immediately before the specified date and in respect of the local area shall be deemed to have been made or authenticated under this Act;(f)all debts or obligations incurred and all contracts made by or on behalf of the Town Area Committee or Panchayat immediately before the specified date and subsisting on the specified date shall be deemed to have been incurred and made by the Council in exercise of the powers conferred under this Act;(g)all officers and servants in the employ of the Town Area Committee or Panchayat as the case may be, immediately before the specified date shall be officers and servants of the Council under this Act and shall, until other provisions are made in accordance with the provisions of this Act, receive salary and allowances and be subject to conditions of service to which they were entitled or subject immediately before such date:Provided that it shall be competent to the Council to discontinue the services of any officer or servant, who in its opinion, is not necessary or suitable to the requirement of the Municipal service after giving such officer or servant notice as is required to be given by the terms of his employment:Provided further that previous sanction of the State Government shall be obtained for discontinuing the services of any permanent officer or servant under the preceding proviso who on such discontinuance shall be entitled to such leave, pension, provident fund and gratuity as he would have been entitled to take or receive on being invalidated from service as if the Town Area Committee or Panchayat in the employ of which he was, had not ceased to exist;(h)all proceedings pending immediately before the specified date before the Town Area Committee or Panchayat or any other authority, as the case may be, shall be deemed to be transferred to and continued by the Council or such authority;(i)all appeals pending immediately before the specified date before the Town Area Committee or the Panchayat or any other authority, shall so far as may be practicable, be disposed of as if such local area had not become a Municipality when they were filed;(j)all prosecutions instituted by, or on behalf of the Town Area Committee, or the Panchayat and all suits and legal proceedings instituted by, or against, such Town Area Committee or Panchayat pending on the specified date shall be continued by or against the Council as if such local area had not become a Municipality when such suits or proceedings were instituted;(k)[ on the application of this Act to any area under sub-section (3) of Section 1, the authority or any institution if performing the Municipal functions shall cease to perform such functions and all assets and liabilities of such authority or institution shall vest in the Municipal Council or Nagar Panchayat, as the case may be, constituted under this Act.] [Inserted by M.P. Art No. 18 of 1997.]Explanation. - In this Section "Panchayat Law" means a law for the time being in force for the organisation and administration of Village Panchayat in the State.
