Section 279(2) in The Gujarat Municipalities Act, 1963
(2)Notwithstanding the repeal of the said Acts-(i)any local area declared to be either a municipal borough or municipal district immediately before the date on which this Act comes into force (hereinafter referred to as "the said date") shall be deemed to be a municipal borough under this Act;(ii)the municipalities constituted under the said Acts immediately before the said date (hereinafter called "the old municipalities") shall be deemed to be municipalities of the respective boroughs (hereinafter respectively called "the new municipalities" and "the new boroughs");(iii)the president, vice-president and councillors elected or appointed for the old municipalities and holding office immediately before the said date shall respectively be deemed to be the president, vice-president and councillors of the new municipalities and subject to the provisions relating to disqualification, resignation, removal and vacancy as provided in this Act shall hold office for the following period, that is to say:-(a)in case the term of their office would have expired after the said date on or before the [30th September 1965] [These figures, letters and words were substituted for the figures letters and words '31st March 1965' by Gujarat 6 of 1965, section 4(1).] under any of the Acts so repealed, or under any other law for the time being in force, for such period not exceeding one year from the said date as the State Government may by general or special order specify:(b)in any other case, for the period for which they would have held office under any of the Acts so repealed:(iiia)[ if any municipality constituted under an Act so repealed has been superseded before the said date under a provision of such Act corresponding to the provision of section 263 of this Act and the period of supersession of such municipality as specified under such Act expires on or after the said date, such supersession shall be deemed to have been made under section 263 of this Act, for the period so specified, notwithstanding anything contained in that section: [This clause shall be deemed always to have been inserted, by Gujarat 6 of 1965, section 4(2)]Provided that where such period expires before the 30th September, 1965 the State Government may by order in writing, extend it for such period not exceeding one year from the said date as it may specify in the order and any such order may be made so as to have retrospective effect.](iv)the unexpended balance of the municipal fund and all the properties (including arrears of rates, taxes and fees) vesting in the old municipalities shall from the said date vest in the new municipalities and such arrears of rates, taxes and fees shall be recoverable under the provisions of this Act as if they had been imposed and recoverable under the provisions of this Act;(v)all debts and obligations incurred and all contracts made by or on behalf of the old municipalities immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the new municipalities in exercise of the powers conferred on them by this Act;(vi)any appointment, notification, notice, tax, fee, order, scheme, licence, permission, rule, by-law, or form made, issued imposed, or granted in respect of the said boroughs or districts and in force immediately before the date of the commencement of this Act shall in so far as they are not inconsistent with the provisions of this Act be deemed to have been made, issued, imposed or granted under this Act in respect of the borough and shall continue in force until it is superseded or modified by any appointment, notification, notice, tax, fee, order, scheme, licence, permission, rule, by-law, or form made, issued imposed, or granted under this Act;(vii)all budget estimates, assessments, assessment lists, valuations or measurements made or authenticated immediately before the commencement of this Act by the old municipalities under this Act;(viii)all officers and servants in the employ of the old municipalities immediately before the said date shall be officers and servants of the new municipalities and shall until other provision is made in accordance with the provisions of this Act, receive the salaries and allowances and be subject to the conditions of service to which they were entitled or subject of such date:Provided that it shall be competent to the State Government after giving a Municipal Commissioner such notice as is required to be given by the terms of his employment, to discontinue his services if in the opinion of the Government he is not necessary or suitable to the requirements of the municipal service; and every Municipal Commissioner whose services are to be discontinued shall be entitled to such leave, pension, provident fund, gratuity, other rights and privileges as he would have been entitled to take or receive or, being invalided out of service if he had continued in the employ of the municipality after the said date:(ix)all proceedings pending before the old municipalities shall be deemed to have been instituted and to be pending before the new municipalities and shall be heard and disposed of by the said municipalities under this Act;(x)all prosecutions instituted by or on behalf of the old municipalities and all suits or other legal proceedings instituted by or against the old municipalities or any officer of municipalities pending at the said date shall be continued by or against the new municipalities;(xi)any reference in any enactment or in any instrument to any Acts hereby repealed or to any provision thereof or any authority elected or appointed thereunder shall be construed as a reference to the Gujarat Municipalities Act, 1963 (Gujarat 34 of 1964), or to the corresponding provision thereof or to the corresponding authority elected or appointed thereunder.