(1) If the State Government is of opinion that the Board has failed to carry out its functions under this Act or that for any other reason, it is not necessary to continue the Board, it may, by notification in the Gazette, dissolve the Board from such date as may be specified in the notification.
(2) Upon the publication of a notification under sub-section (1) dissolving the Board-
(a) the Adhyaksh, the Housing Commissioner and all members of the Board shall, as from the date of dissolution, vacate their offices;
(b) all the powers and functions which may, by or under this Act, be exercised and performed by or on behalf of the Board or the Housing Commissioner shall, as from the date of dissolution, be exercised and performed by, and all subsisting contracts, agreements and other instruments to which the Board or the Housing Commissioner is a party or which are in favour of the Board or the Housing Commissioner may be enforced or acted upon, and all suits, appeals and other legal proceedings pending by or against the Board or the Housing Commissioner may be continued, prosecuted or enforced by or against the State Government or such authority or person as it may appoint in this behalf;
(c) the fund of and other properties vested in the Board shall vest in the State Government; and
(d) all liabilities, legally subsisting and enforceable against the Board, shall be enforceable against the State Government to the extent of the fund and properties of the Board vested in it.
(3) Nothing in this section shall affect the liability of the State Government in respect of debentures guaranteed by it under sub-section (2) of Section 59.
(4) Notwithstanding anything contained in the foregoing provisions of this section, the State Government may at any time again establish a Board under Section 3 and appoint a Housing Commissioner under Section 7, and thereupon-
(a) the powers and functions as well as the rights and liabilities in relation to contracts, agreements and other instruments, and suits, appeals and other legal proceedings referred to in clause(b) of sub-section(2) shall re-vest in the Board or the Housing Commissioner, as the case may be;
(b) the fund other properties referred to in clause(c) of sub-section(2) remaining with the State Government after meeting and liabilities referred to in clause(d) thereof shall re-vest in the Board.