Section 131(1) in The Bihar and Orissa Local Self-Government Act, 1885
(1)If in the opinion of the [State] Government, a District Board, Local Board or Union Committee is not competent to perform, or persistently makes default in the performance of, the duties imposed on it by or under this Act or otherwise by law, or exceeds or abuses its powers, the [State] [Substituted by ALO.] Government may, by notification specifying the reason for so doing declare such District Board. Local Board or Union Committee to be incompetent or in default or to have exceeded or abused its powers, as the case may be; and(a)[ direct that, on a date to be specified in the order, the offices of the members of the District Board, Local Board or Union Committee as the case may be, shall be deemed to be vacant and that until a fresh election is held in pursuance of an order of the State Government made in this behalf, the powers and duties conferred and imposed on the District Board, Local Board or Union Committee, as the case may be, by or under this Act shall be exercised and performed by such person, or a committee of such persons, as the State Government may appoint in this behalf; or] [Substituted by Bihar Act 40 of 1950 for the original section.](b)direct that the District Board, Local Board or Union Committee shall be superseded for such period, not exceeding three months, as may be specified in the notification:Provided that the [State] [Substituted by ALO.] Government may, as often as it thinks fit by like notification, renew such direction for further periods for three months.