(1) If, in the opinion of the Government a market committee is not competent to perform or persistently makes default in performing the duties imposed on it by or under this Act, or abuses its powers, they may, by notification, supersede such committee for a period [not exceeding six months] in the first instance and may, by order, extend, from time to time, the period of supersession, so however, that the total period of supersession in the case of any market committee shall [not exceed one year]:
Provided that before issuing a notification under this sub-section, the Government shall give to the market committee on opportunity of making representation on the action proposed and shall consider the explanation or objection, if any, of the market committee thereon.
(2) As from the date of publication of a notification under sub-section (1), superseding a market committee, the following consequences shall ensure-
(a) all the members as well as the Chairman and Vice-Chairman of the market committee shall be deemed to have vacated their offices-
(b) all the assets vested in the market committee shall, subject to all its liabilities, vest in the Government.
(3) Where a market committee has been superseded-
(a) the Government may, by order, [nominate] a suitable person or persons to exercise the powers and perform the functions of the market committee during the period of its supersession and transfer to such person or persons the assets and liabilities of the superseded market committee as on the date of such transfer, and
(b) the Government may, at any time before the expiration of the period of supersession, constitute a new market committee under sub-section (1) of section 4 and transfer thereto the assets and liabilities of the superseded market committee as on the date of such transfer.