(1) If any municipality makes default in the collection or payment to the State Government of any sum due in respect of the tax on lands, buildings under this Act, the State Government may, after holding such inquiry as it thinks fit, fix a period for the collection or payment of such sum.
(2) If the collection or payment of the sum is not made within the period so fixed the State Government may, notwithstanding anything contained in any law relating to the funds vesting in such municipality or any other law for the time being in force, direct any bank in which any moneys of the municipality are deposited or the person in charge of the Government treasury or of any other place of security in which the moneys of such municipality are deposited, to pay such sum from such moneys as may be standing to the credit of the municipality in such bank, or as may be, in the hands of such person or as may from time to time be received from or on behalf of the municipality by way of deposit by such bank or person; and such bank or person shall be bound to obey such order.
(3) Every payment made pursuant to an order under sub-section (2) shall be a sufficient discharge to such bank or person from all liability to the municipality in respect of any sum so paid by it or him out of the moneys of that municipality so deposited with such bank or person.