115. Effect of conversion of a [smaller urban area or a transitional area into panchayat area] [Substituted by Act 29 of 1997 w.e.f. 20.10.1997.].
(1)Notwithstanding anything contained in this Act or any other law for the time being in force, the Government may, after previous publication by notification, direct that the local area constituting [any smaller urban area] [Substituted by Act 29 of 1997 w.e.f. 20.10.1997.] shall from such date as may be specified therein (hereinafter referred to as the specified date), be a panchayat area and in respect thereof, on and from such specified date, the following consequences shall ensue, namely:-(a)the Municipal Council of such local area shall cease to exist or to function;(b)there shall be constituted for the panchayat area an interim Grama Panchayat consisting of persons vacating office as councillors of the municipality and the President and Vice President of Municipal Council shall be deemed to be the Adhyaksha and Upadhyaksha of the interim Grama Panchayat;(c)the unexpended balance of the municipal fund and the property (including arrears of rates, taxes and fees) belonging to the Municipal Council and all rights and powers which, prior to such notification, vested in the Municipal Council shall, subject to all charges and liabilities affecting the same vest in the interim Grama Panchayat as the Grama Panchayat Fund until a new Grama Panchayat is constituted in pursuance of the provisions of sub-section (1) of section 116;(d)any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted under the municipal law before the specified date in respect of such local area shall continue in force and be deemed to have been made, issued, imposed or granted in respect of the panchayat area until it is superseded or modified by any appointment, notification, notice, tax, order, scheme, licence, bye-law or form made, issued, imposed or granted under this Act;(e)all budget estimates, assessments, assessment lists, valuation or measurements made or authenticated under the municipal law immediately before the specified date in respect of such local area shall be deemed to have been made or authenticated under this Act;(f)all debts and obligations incurred and all contracts made by or on behalf of the Municipal Council before the specified date and subsisting on the specified date shall be deemed to have been incurred and made by the Grama Panchayat in exercise of the powers conferred on it by this Act;(g)all officers and servants in the employ of the Municipal Council immediately before the specified date shall be officers and servants of the Grama Panchayat under this Act, and shall, until other provision is made in accordance with the provisions of this Act, receive salaries and allowances and subject to the conditions of service to which they were entitled or subject immediately before such date:Provided that it shall be competent to the Grama Panchayat subject to the previous sanction of the Government to discontinue the services of any officer or servant who, in its opinion, is not necessary or suitable to the requirements of the Grama Panchayat service after giving such officer or servant such notice as is required to be given by the terms of his employment and every officer or servant whose services are discontinued, shall be entitled to such leave, pension, provident fund, and gratuity as he would have been entitled to take or receive on being invalidated out of service as if the Municipal Council in the employ of which he was, had not ceased to exist;(h)all proceedings pending immediately before the specified date before the Municipal council shall be deemed to be transferred to and be continued before the Grama Panchayat;(i)all appeals pending immediately before the specified date before the Municipal Council shall , so far as may be practicable, be disposed of as if such local area had been included in the Grama Panchayat when they were filed;(j)all prosecutions instituted by or on behalf of the Municipal Council and all suits or other legal proceedings instituted by or against such Municipal Council or any officer of such municipal council pending immediately before the specified date shall be continued by or against the Grama Panchayat as if such local area had been included in the panchayat area when such prosecution, suits or proceedings were instituted.(2)The provisions of sub-section (1) shall, mutatis mutandis, apply for the [conversion of a transitional area into a panchayat area.] [Substituted by Act 29 of 1997 w.e.f. 20.10.1997.]
