(1) There shall be constituted-
(a) a Municipal Council for a smaller urban area; and
(b) a Nagar Panchayat for a transitional area , that is to say an area in transition from a rural area to an urban area.
Provided that a Municipal Council or a Nagar Panchayat, as the case may be , may not be constituted in such urban area or part thereof as the Governor may, having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment or a group of such establishments inn that area and such other factors as he may deem fit, by public notification specify to be an industrial township:
Provided further than when an area is notified to be a transitional area, the Gram Panchayat having jurisdiction over such area shall continue to function until a duly elected Nagar Panchayat is constituted under this Act.
(2) In this Section a smaller urban area, or ‘a transitional area, means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors, as he may deem fit specify, by public notification for the purpose of this Act.
(3) Omitted.
5-A. Power of State Governor to include or exclude certain area.-
(1) The Governor may, by notification in the Gazette, declare the intention to include within or exclude from the limits of a municipal area , any specified area.
(2) If the local authority having jurisdiction in the said area or any person resident therein, objects to such declaration, such authority or person may submit an objection in writing to the Collector within a prescribed period and the Governor shall take such objection into consideration.
(3) When the said period has expired and the Governor has considered the objection under sub-section (2), the Governor may, b y notification, include within or exclude from the limits of the municipal area, any specified area;
Provided that when an area is excluded from the limits of any municipal area, such area notwithstanding such exclusion shall continue to be within the limits of the municipal area until the area so excluded is included in a duly constituted Panchayat area.
6. Procedure for publication of notification- Every notification under Section 5 shall be published in the Official Gazette and in at least one Hindi newspaper having circulation in the area to which it relates and also by pasting a copy thereof-
(a) in a conspicuous place in the office of the Collector;
(b) in a conspicuous place in the office of the Municipality, if any, affected by the notification;
and The Madhya Pradesh* Municipalities Act, 1961 7 *छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।
(c) in such conspicuous places in the area affected by the notification as the Collector may deem fit.
7. Effect of establishing Municipality for local area which ceases to be Town area or Panchayat- When any local area ceases to be a Town Area under the Bhopal State Town Area Act, 1954(XIV of 1954) , or a Panchayat under the Panchayat Law and immediately following such cessation a Municipality is established under Section 5 for such area then as from the date of the establishment of the Municipality (hereinafter in this section referred to as the specified date) the following consequences shall ensure, namely:-
(a) the Town Area Committee or the Panchayat, as the case may be, shall cease to exist;
(b) there shall be constituted a committee in accordance with the provision of Section 16 to exercise the powers of the Council pending its constitution;
(c) the unexpanded balance of the Town Area Fund or the Panchayat Fund and the property (including areas of rates, taxes rents, and fees) belonging to the Town Area Committee or the Panchayat and all rights and powers which prior to such notification were vested in the Town Area Committee or the Panchayat shall , subject to all charges and liabilities affecting the same, vest in the Committee until a Council is constituted under this Act;
(d) any appointment, notification, notice , tax, order, scheme licences, permission, rule, bye-law or form made, issued imposed or granted under the Bhopal State Town area Act, 1954 (XIV of 1954), or the Panchayat law before the specified date in respect of such local area shall so far as it is not inconsistent with the provisions of this Act continue, to be in force and be deemed to have been made, issued imposed or granted in respect of the Municipality until it is superseded or modified by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted under this Act;
(e) all budget estimates, assessment, assessment list, valuation or measurement made or authenticated under the Bhopal State Town Area Act, 1954(XIV of 1954) , or the Panchayat law immediately before the specified date and in respect of the local area shall be deemed to have been made or the authenticated under this Act;
(f) all debts or obligations incurred and all contracts made by or on behalf of the Town Area Committee or Panchayat immediately before the specified date and subsisting on the specified date shall be deemed to have been incurred and made by the Council in exercise of the powers conferred under this Act;
(g) all officers and servants in the employ of the Town Area Committee or Panchayat as the case may be, immediately before the specified date shall be officers and servants of the Council under this Act and shall, until other provisions is made in accordance with the provisions of this Act, receive salary and allowance and be subject to conditions of service to which they were entitled or subject immediately before such date;
Provided that it shall be competent to the council to discontinue the services of any officer or servant who in its opinion , is not necessary or suitable to the requirement of the municipal service after giving such officer or servant notice as is required to be given by the terms of this employment:
Provided further that previous sanction of the State Government shall be obtained for discontinuing the services of any permanent officer or servant under the preceding proviso who on such discontinuance shall be entitled to such leave, pension provident fund and gratuity as he would have been entitled to take or receive on being invalidated from service as if the Town Area Committee or Panchayat in the employ of which he was, had not ceased to exist.
The Madhya Pradesh* Municipalities Act, 1961 8 *छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।
(h) all proceedings pending immediately before the specified date before, the Town Area Committee or Panchayat or any other authority, as the case may be, shall be deemed to be transferred to and continued by the Council or such authority.
(i) all appeals pending immediately before the specified date before the Town Area Committee or the Panchayat or any other authority, shall so far as may be practicable, be disposed of as if such local area had not become a Municipality when they were filed;
(j) all prosecutions institute by, or on behalf of the Town Area Committee or the Panchayat and all suits and legal proceedings instituted by or against, such Town Area Committee or Panchayat pending on the specified date shall be continued by or against the Council as if such local area had not become a Municipality when such suits of proceedings were instituted;
(k) on the application of this Act to any area under sub-section (3) of Section 1, the authority or any institution if performing the municipal functions shall cease to perform such functions and all assets and liabilities of such authority or institution shall vest in the Municipal Council or Nagar Panchayat, as the case may be, constituted under this Act;
Explanation- In this section “Panchayat Law” means a low for the time being in force for the organization and administration of Village Panchayat in the State.
8. Effect of including local area in a Municipality- When a local area has been included in a Municipality by a notification under Section 5A all notifications, rules, bye-laws, orders, directions, notices and powers made, issued or conferred under this Act and in force throughout the Municipality at the time. Shall, unless the State Government, by notification, otherwise directs apply to such local area.
9. Effect of Excluding local area from Municipality-
(1) When a local area is excluded from a Municipality by a notification published under section 5 A –
(a) all notifications, rules, bye-law, orders, directions, notices and powers made, issued or conferred under this Act shall cases to apply thereto; and
(b) the State Government shall frame a scheme determining what portion of the balance of the Municipal Fund and all other property vested in the Council shall, on such exclusion, vest-
(i) Where such area is included within the limits of any other local authority, in such local authority; and
(ii) in any other case, in the State Government;
and in what manner the liability of the Council shall be apportioned between the Council and any such local authority or the State Government, as the case may be and on the publication of such scheme in the Gazette, such property and liability shall vest and be apportioned accordingly:
Provided that before framing any such scheme the State Government shall consult the Council and where the area is included within the limits of any other local authority, also such authority.
(2) Notwithstanding anything contained in sub-section (1) all moneys due to the Council, immediately before the date of such exclusion, on account of tax, toll, fee, rate, or otherwise may, in respect of the area so excluded, be recovered by the Council as if such area has not been excluded.
10. to 15. Omitted The Madhya Pradesh* Municipalities Act, 1961 9 *छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।
16. Exercise of powers of Council pending its constitutions. ---
(1) When an area is declared to be a Municipality for the first time under this Act, the State Government, shall, by notification, constitute a Committee consisting of a President. [a Vice- President] and such number of members as it may deem fit and such a Committee shall be deemed to be a Council for the purpose of this Act:
Provided that no person shall be appointed as President or Vice-President or member of such a Committee who is ineligible to hold such office in the Council under this Act.
(2) A Committee constituted under sub-section (1) shall continue to function until a Council is constituted under this Act or until the expiration of six months from the date of its constitution which is earlier.
(3) The State Government may, by notification, at any time remove the President, Vice- President or a member of the Committee and appoint any other person eligible to be so appointed in his place.
(4) Notwithstanding anything contained in sub-section (1), the provisions of sections 41, 47 and 48 shall not apply to the Committee.
17. Erection and maintenance of boundary mark- Every Municipality shall demarcate the boundaries of the municipality by permanent boundary marks in such manner as may be prescribed by rules and shall be responsible for the maintenance and repairs thereof.
18. Incorporation of Municipalities- Every Municipality constituted under section 5 of this Act, shall be a body corporate by the name of the Municipal Council or Nagar Panchayat, as the case may be, and shall have perpetual succession and a common seal, with power to acquire and hold property, both movable and immovable, and subject to the provisions, of this Act or any rules made there under, to transfer any property held by it and to contract and to do all other things necessary for the purpose of this Act and may sue and be sued in its corporate name.
19. Composition of Municipal Council or Nagar Panchayat-
(1) A Municipal Council or a Nagar Panchayat, shall consist of-
(a) President, that is Chairperson, elected by direct election from the Municipal area;
(b) Councillors elected by direct election from the wards;
(c) Not more than four persons in the case of Municipal Councils and not more than two persons in the case of Nagar Panchayats having special knowledge or experience in Municipal Administration nominated by the State Government.
Provided that only a person residing within the Municipal area and being otherwise not ineligible for election as a Councillor may be nominated;
(d) Members of the House of the people and the Members of the Legislative Assembly of the State representing constituencies which comprise wholly or partly the municipal area;
(e) Members of the Council of State registered as electors within the municipal area; Provided that a member of the House of the people and a member of the State Legislative Assembly as mentioned in clause (d) or a member of council of State, as mentioned in clause (e) may nominate his representative, who possesses such qualifications as may be prescribed in this behalf to attend the meeting of the Council.
The Madhya Pradesh* Municipalities Act, 1961 10 *छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।
(2) The person nominated under clause (c) of sub-section (1) shall hold office during the pleasure of the State Government.
(3) Persons referred to in clauses ©, (d), and (e) of sub-section (1) shall be deemed to be councilors, but shall not have the right to vote in the meetings of the Council.
(4) If any municipal area fails to elect a President or any ward fails to elect a Councillor, fresh election proceedings shall be commenced for such municipal area or ward, as the case may be, within six months to fill the seat, and until the seat is filled it shall be treated as casual vacancy:
Provided that proceedings of election of Vice-President, or any of the Committees under the Act shall not be stayed, pending the election of such seat.