(1) When the trust created for an area has executed all schemes sanctioned under this Act or so far executed them as to render its continued existence, in the opinion of the *[State Government], unnecessary the *[State Government] may by notification declare that the trust shall be dissolved from such date as may be specified in this behalf in such notification and the trust shall be deemed to be dissolved accordingly.
(2) From the said date,-
(a) all properties, funds and dues which are vested in or realizable by the trust and the chairman, respectively, shall vest in and be realizable by the municipal council and the chairman of the council respectively; and
(b) all liabilities which are enforceable against the trust shall be enforceable only against the municipal council;
and
(c) for the purpose of completing the execution of any scheme, sanctioned under this Act which has not been fully executed by the trust, and of realizing properties, funds, and dues referred to in clause (a) the functions of the trust and the chairman under this Act shall be discharged by the municipal council and the chairman of the council, respectively.