Section 427 in The Punjab Municipal Corporation Act, 1976
427. Assets, liabilities, debts, obligations, contracts and pending proceedings.
(1)All assets and properties vesting in, all debts, liabilities and obligations incurred by, and all contracts made by or on behalf of, the municipal committee or local authority for the area which has been constituted to be a City or which has been included in a City and subsisting on the day on which it is so constituted or included shall, in so far as they relate to the area so constituted or included, be deemed to have been vested in, to have been incurred and made by, the Corporation and shall continue in operation accordingly.(2)All proceedings pending before any authority of the said municipal committee or local authority on the said day which under the provisions of this Act are required to be instituted before or undertaken by the Commissioner shall be transferred to and continued by him and all other such proceedings shall, in so far may be, be transferred to and continued by such authority before or by whom they have to be instituted or undertaken under the provisions of this Act.(3)All appeals pending before any authority of the said municipal committee or local authority on the said day shall, so far as may be practicable, be disposed of as if the area was constituted to be a City or included in a City when they were filed.(4)All prosecutions instituted by or on behalf of the said municipal committee or local authority and all suits and other legal proceedings instituted by or against the said municipal committee, local authority or any officer of the said municipal committee or local authority pending on the said day shall, in so far as these relate to the area constituted to be a City or included in a City, be constituted by or against the Commissioner or the Corporation for the said City, as the case may be, as if the area was constituted to be a City or included in a City when such prosecution, suit or proceeding was instituted.
