(1) Subject to the provisions contained in sub-section (2) the Administrator may, by notification, declare any area wilhin the district, to be a municipal, area, and may, by like notification extend enntrace or otherwise alter the limits of any municipal area, or may declare that any such area shall, 'from a date specified by him, cease to be a municipal area:
Provided that no such notification shall be issued unless,—
(i) a draft of the proposed notification together with a notice speciiying the data after which that draft and the objections and sugEjestionq of the persons likely to be affected thereby, will be taken into consideration by the- Administrator has been previously published and posted at ihe office of the Dep'uty Commissioner and one or move conspicuous places within or adjacent to the area concerned; and (U) the objections and suggestions of tiie persons likely to be affected by the pinposed not'fiCdli'in icceived in writing within the date so specified, have br=en taken into consideration by the Administrator and have been 'found by him io be insufficient oi* invalid.
(2) No notification under sub-section (I) shall be issued in respect ot—
(a) any place which has been 'legated by the Central Government under section 3 of the Cantonments, Act, 1924 to be a Cantonment for the purposes of that Act, or
(b) any aiea not having an average population of five hundred inhabitants to a t'.cjunre mile calculated in accordance with the latest official census:
Provided that the Administrator may, having regard io the populadon of the arep, the densiiy of the population therein, the revenue generated for local administrator^ the peicemage of employment in non-agricultural activities, the economic importance, or such other factors as he may deem fit, specify, b v no Li fie iliun, any such municipal area as an area for establishing a Nagar Panchayat or Municipal Council, as the case may be.
Effect of including other area in municipal areu.
4. When, by reason of a notification under section 3 the limits of a municipal area are extended to include therein any other area, such other area shall thereby be"ome subject tn this Regulation and to all notifications, mis, bye-laws, orders, direct ;"is, issued or made thereunder and in force throughout I he municipal area, save in so far as the Administrator may otherwise, by notification direct.
Effect of excluding area from municipal area.
5. (!) When, by leason of. a notification under section 3 the limits of a municipal area are contracted to exclude therefrom any area forming part thereof, if the area -=o excluded is immediately placed unde^ the control of some other local authority such portion of the Municipal Fund and property vesting in the Municipality and such portion of the liabilies of the Municipality as the AdmiiV.slraior may direct, shall be transferred to that other local authority, or, if the area so excluded is not immediately placed under the control of any other local authority tec. 1] THE GAZETTE Ob TNDIA FXTRAORD1NARY 7 such portion of the Municipal Fund and property vesting in the municipality shall vest in the Government, and s"uch portion of the liabilities oi the Municipality shall be transferred to the Government, as the Administrator may direct.
(2) When, by reason of y notification under section 3 any municipal area ceases to be a municipal area then, if the area, comprised therein is immediately placed under the control of home other local authority, the Municipal Fund and proper.'y vesting in the Municipality shall vest in, and the liabilities o[ Ihe Municipality shall be transferred to, such other local authority, or, if the area is not immediately placed under the control of another local authority, such fund and property shall vest in the Government and the liabilities of the Municipality shall be transferred to the Government.
6. AH property vested in the Government under section 5, shall b« applied under ihe orders of the Administrator in ihe first place to discharging the liabilities imposed on the Government under that section and in the second nlaet* for Ihe promotion of the srtfetv health, welfare or convenience of the inhabitant of 'he area which has ceased in be, or as the case may be, to be the part, of the munirjpol area.
Application of propei ty vested in Government.
CHAPTER III MUNICIPAL AUTHORITIES, OFFICERS AND SERVANTS
7. The Administrator shall by notification in the Official Gazette, constitute for every municipal area a Municipality.
Constitution of Municipalities.
8. Every Municipality constituted under section 7 shall be a body corporate having perpetual succession and a common seal and shall, subject to such restrictions and conditions imposed by or under this Regulation or under any other law for the time being in force and shall have power to acquire, hold, administer and transfer property both movable and immovable and to enter into contract and shall by th e said name sue or be sued.
Municipality to be a body corporate.