If in the opinion of the Government, a Nagar Panchayat or a Council, as the case may be, is not competent to perform or persistently make default in the performance of the obligatory duties imposed upon it by or under this Act or exceed or abuse its power the Government may by notification, stating the reasons for so doing declare such Nagar Panchayat or Council to be incompetent or in default or to have exceeded or abused its power, as the case may be, and dissolve such Nagar Panchayat or Council:
Provided that a Nagar Panchayat or a Council, as the case may be, shall be given a reasonable opportunity of being heard before its dissolution:
Provided further that when a Nagar Panchayat or a Council, as the case may be, is dissolved, the Government may appoint any person or persons to exercise and perform the powers and duties of the Nagar Panchayat or the Council during the period of dissolution until the new Nagar Panchayat or the Council, as the case may be, is constituted:
Provided also that the Government shall, before the expiry of a period of six months from the date of dissolution of the Nagar Panchayat or the Council, cause fresh elections to be held for the constitution of a new Nagar Panchayat or a new Council.