(1) Where the State Government after consultation with the Board, is of the opinion that it is necessary or expedient in the public interest or in the interest of the development of the area under the jurisdiction of two or more Special Urban Planning and Development Authorities, that two or more Special Urban Planning and Development Authorities should be amalgamated, the State Government may, by notification in the Official Gazette, provide for the amalgamation of such Special Urban Planning and Development Authorities (hereinafter in this Chapter referred to as the transferor Special Urban Planning and Development Authorities) into a single Special Urban Planning and Development Authority (hereinafter in this Chapter referred to as the transferee Special Urban Planning and Development Authority) with such constitution, property, powers, rights, interest, authorities and privileges; and with such liabilities, duties and obligations, as may be specified in the notification.
(2) Every notification issued under sub-section (1) shall define the limits of the area to which it relates and specify the date with effect from which the amalgamation shall become effective.
(3) Every notification issued under sub-section (1) may also provide for one or any of the following matters, namely :-
(a) the continuance in service of all the employees of the transferor Special Urban Planning and Development Authorities in the transferee Special Urban Planning and Development Authority at the same remuneration and on the same terms and conditions of service, which they were getting, or, as the case may be, by which they were being governed, immediately before the date on which the amalgamation takes effect;
(b) the other terms and conditions for the amalgamation of the Special Urban Planning and Development Authorities;
(c) the continuance by or against the transferee Special Urban Planning and Development Authority of any pending legal proceedings by or against any transferor Special Urban Planning and Development Authority; and
(d) such consequential, incidental and supplementary provisions, as may, in the opinion of the State Government, be necessary to give effect to the amalgamation.
(4) Notwithstanding anything contained in clause (a) of sub-section (3), where any employee of the transferor Special Urban Planning and Development Authority by notice in writing given to the transferee Special Urban Planning and Development Authority at any time before the expiry of three months next following the date on which the amalgamation takes effect has intimated his intention of not becoming an employee of the transferee Special Urban Planning and Development Authority, he shall cease to be employee of that Authority on the expiry of the notice served and shall be entitled to get such gratuity, provident fund and other retirement benefits as are ordinarily admissible to him under the rules or authorisations of the transferor Special Urban Planning and Development Authority immediately before the date of amalgamation;
(5) On and from the date on which the amalgamation takes effect under sub- section (2), the transferor Special Urban Planning and Development Authorities shall cease to carry on business or to discharge any liability or obligation except to the extent as may be necessary for the implementation of the provisions of the said amalgamation and shall stand dissolved from the date of amalgamation;
(6) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (Central Act XIV of 1947) or any other law for the time being in force, the transfer of the service of any employee of the transferor Special Urban Planning and Development Authorities to the transferee Special Urban Planning and Development Authority shall not entitle any such employee to any compensation under that Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or any other authority.