Section 271(1) in The Himachal Pradesh Municipal Corporation Act, 1994
(1)If at any time, it appears to the State Government or the prescribed authority that a municipality is persistently making the default in the performance of the duties imposed on it by or under this Act or under any other law for the time being in force, or exceeds or abuses its powers or fails to carry out any order of the State Government or the competent authority, the State Government or the prescribed authority, may, after such enquiry as it may deem fit, by an order dissolve such municipality and may order a fresh constitution thereof.
