Subject to the provisions of sub-section (2) of section 371, where as respects any built-up area within a municipal area, the Municipality upon information in its possession is satisfied,- a. that the buildings in that area are by reason of disrepair or sanitary defects, unfit for human habitation or are by reason of their bad arrangement, or narrowness or bad arrangement of the streets or want of light, air, ventilation or proper conveniences, dangerous or injurious to the health of the inhabitants of that area; or b. that because of bad layout or absolute or undesirable dwellings, renewal of such area is necessary; or 427 c. that there is need to create new or improved means of communication and facilities for traffic, and that the most satisfactory method of remedying these defects is to frame a Town Improvement Scheme in respect of such area, the Municipality may pass a resolution of its intention so to do.
Explanation.- For the purposes of this section, the expression "built-up area" means that portion of a municipal area of which the greater part has been developed as a business or residential area.