(1) As from the appointed day--
(a) all property, interest in property and assets including cash balances, wherever situate which immediately before such day were wasted in any Municipal Council Improvement Trust or other local authority having jurisdiction both within and outside such area shall, unless otherwise directed by the State Government, vest in and be held by the Corporation of such City, for the purposes of this Act, and
(b) all rights, liabilities and obligations of the aforesaid Municipal Council Improvement Trust or other local authority whether arising out of any contract or otherwise, existing immediately before such day shall be the rights, liabilities and obligations of such Corporation.
(2) Where any doubt or dispute arises as to whether any property, interest or asset has vested in a Corporation under subsection (1) or any rights, liabilities or obligations have become the rights, liabilities or obligations of a Corporation such doubt or dispute shall be referred by the Municipal Commissioner to the State Government whose decision shall unless superseded by any decision of a court of law be final.