(7)Upon the issue of a notification under sub section (4) withdrawing any urban 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 also other property vested in the municipal Council or Town Council shall vest in the Government and the liabilities of the municipal council or Town Council shall transferred to the Government;(c)Any right, privilege, obligation or liability acquires, accrued to or incurred by the municipal Council or Town Council immediately before such withdrawal, shall vest in or be enforceable against the Government.Provided that any tax, fee or other amount due from any personal to the Municipal Council or Town Council shall be recoverable by the Government as arrear of land revenue.(c)All suits, prosecutions and other legal proceedings instituted or which might have been instituted by or against the Municipal Council or Town Council, may be continued or instituted by or against the Government;(d)The posts of officers and employees of the Municipal Council or Town council shall be deemed to have been abolished and consequently the cadre of Municipal services comprising such posts shall be deemed to have been correspondingly reduced.Provided that the Government shall provide alternative employment in other Municipalities to the person becoming surplus consequent upon such abolition or reduction and for that purpose the Government can direct any Municipalities to appoint a person on a post to which he may be found suitable by the Government.Chapter-II Municipal Council
