(8)Upon the issue of a notification under sub-section (4), withdrawing any transitional area altogether from the operation of this Act, -(a)the provisions of this Act and all notifications, rules, regulations, orders, directions and powers issued, made or conferred thereunder shall cease to apply to such area;(b)the Municipal Fund and all the other property vested in the Nagar Panchayat shall vest in the Government and the liabilities of the Nagar Panchayat, shall stand transferred to the Government;(c)Any right, privilege, obligation or liabilities acquired, accrued to or incurred by the Nagar Panchayat immediately before such withdrawal shall vest in or be enforceable against the Government :Provided that any tax, fee or other amount due from any person to the Nagar Panchayat shall be recoverable by the Government as an arrear of land revenue.(d)all suits, prosecutions and other legal proceedings instituted or which might have been instituted by or against the Nagar Panchayat, may be continued or instituted by or against the Government;(e)the posts of officers and employees of the Nagar Panchayat shall be deemed to have been abolished and consequently the cadre of the Municipal Services constituted under section 108 comprising any such posts shall be deemed to have been correspondingly reduced :Provided that the Government shall provide alternative employment in other municipalities to the persons becoming surplus consequent to such abolition or reduction and for that purpose the Government can direct any municipality to appoint a person on a post to which he may be found suitable by the Government.
