(1) If, in the opinion of the State Government a Committee is incompetent to perform or persistently makes default in performing the duties imposed on it by or under this Act, or abuses its powers, the State Government may, by notification, supersede the Committee.
Provided that before issuing a notification under this sub-section the State Government shall give a reasonable opportunity to the Committee for showing cause against the proposed supersession and shall consider the explanations and objections, if any of the Committee.
(2) Upon the publication of a notification under sub-section (1) superseding a Committee, the following consequences shall ensue :-
(a) all the members including the Chairman and Vice-Chairman of the Committee shall as from the date of such publication, be deemed to have ceased to be members of the Committee.
(b) all assets of the Committee shall vest in the Board and the Board shall be liable for all the legal liabilities of the Committee subsisting at the date of its supersession up to the limit of the said assets ;
(c) the State Government may, in its discretion, by order constitute either a new Committee as provided under section 12 or such other authority for the carrying out of the functions of the Committee as the State Government may deem fit.
(3)(a) When the State Government has made an order under clause (c) of sub-section (2), the assets and liabilities defined in clause (b) of sub- section (2) vesting in the Board at the date of such order shall be deemed to have been transferred on the date of such order to the new Committee or authority constituted as aforesaid.
(b) (i) Where the State Government by order under clause (c) of sub- section (2) has appointed an authority other than a new Committee for the carrying out of the functions of the superseded Committee the State Government may, by notification, determine the period not exceeding one year for which such authority, shall act :
Provided that the term of office of such authority may be terminated earlier, if the State Government for any reason consider it necessary.
(ii) At the expiry of the term of office of such authority a new Committee shall be constituted.
(iii) Upon such an order being made the assets and liabilities vesting in the authority thereby superseded, shall be deemed to have been transferred by such order to the new Committee.
(4) Whenever the assets of a Committee vest in the Board and no new Committee or authority is appointed in its place the Board shall employ the balance of the assets remaining after the discharge of the subsisting legal liabilities of the Committee for any object of public utility in the area specified in the notification issued under section 6.