(1) Subject to the size of a municipal establishment as determined under section 53, no person shall be appointed by any Municipality without the prior sanction of the State Government, if it means the enlargement of establishment by more than one per cent per year of the total number of sanctioned strength of the officers and employees existing in the year immediately preceding:
Provided that no admissible enlargement of sanctioned strength in any year, if not filled up, may be carried forward in the next year, subject to a minimum of one in each year:
Provided further that the State Government may prescribe the category or scale of pay of posts to which no appointment shall be made without the prior sanction of the State Government even though the creation of such posts are within the admissible limit of one per cent as aforesaid.
(2) Recruitment to the posts of officers and employees not made through the Municipal Service Commission constituted under this Act, shall be made through the local employment exchange or through any other method as may be decided by the State Government from time to time.