- [(1) Before the expiry of a financial year. If the council fails to approve, the budget of the Municipality for the succeeding financial year, and if, for that reason, there is financial crisis to the Municipality or if the majority of the councillors resign or have been disqualified, the Government may, by notification in the Gazette, dissolve the Municipality from such date as may be specified therein and shall forward a copy thereof to the State Election Commission.Provided that before such dissolution, the Municipality shall be given a reasonable opportunity of being heard.(1A)Where the Government are of opinion that a Municipality consistently makes default in performing the duties imposed on it by law or in carrying out the orders or directions issued in accordance with law by the Government or exceeds or abuses its powers, they may, by notification in the Gazette, dissolve the said Municipality and shall forward a copy thereof to the State Election Commission.Provided that the Government shall, before such dissolution communicate to the Municipality their intention to dissolve the Municipality giving reasons therefore and give the Municipality a reasonable opportunity to show cause against the same and consider its objection or explanation, if any:Provided further that if, after considering the objection or explanation of the Municipality, it is considered that the Municipality shall be dissolved the advice of the Ombudsman constituted under Section 271G of the Kerala Panchayat Raj Act 1994 (Act 13 of 1994) shall be sought and the final decision shall be taken on the basis of that advice.] [Substituted by Act 14 of 1999, w.e.f. 24-3-1999.](2)A Municipality dissolved [under sub-section (1) or sub-section (1A)] [Substituted 'under sub-section (1)' by Act 14 of 1999, w.e.f. 24-3-1999.] shall be reconstituted within such time as the Government may specify in that behalf which shall not be later than six months from the date of dissolution:Provided that where the remainder of the period for which the dissolved Municipality would have continued is less than six months, it shall not be necessary to hold any election for reconstituting the Municipality for such period.(3)[ x x x x] [Omitted by Act 14 of 1999, w.e.f. 24-3-1999.](4)Upon the dissolution of a Municipality [under sub-section (1) or sub-section (1A)] [Substituted 'under sub-section (1)' by Act 14 of 1999, w.e.f. 24-3-1999.] all the Councillors, including the Chairperson and the Deputy Chairperson shall forthwith be deemed to have vacated their offices.(5)[ x x x x] [Omitted by Act 14 of 1999, w.e.f. 24-3-1999.](6)A Municipality which is constituted upon dissolution before the expiration of its duration shall continue only for the remainder of the period for which the dissolved Municipality would have continued had it not been so dissolved.(7)Every notification issued [under sub-section (1) or sub-section (1A)] [Substituted 'under sub-section (1)' by Act 14 of 1999, w.e.f. 24-3-1999.] shall, as soon as may be, after it is issued, be laid before the Legislative Assembly while it is in session and if it is not in session, at the commencement of the ensuing session and the approval of the Assembly obtained.
