362. Conversion of ¹ [city municipal areas into town municipal areas] .--

(1) The ¹ [Governor] may, at any time after consulting the municipal council concerned and considering objections, if any, declare by notification that a city ¹ [municipal area] shall, with effect from a date to be specified in the notification, be a town ¹ [municipal area] constituted under this Act.

(2) The provisions of this Act relating to city ¹ [municipal areas] shall not apply to the ¹ [municipal area] declared as a town ¹ [municipal area] under sub-section (1) with effect from the date specified in the declaration.

(3) Any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made, issued or imposed in respect of a ¹ [municipal area] declared as a town ¹ [municipal area], and any appointment, notification, order, scheme, rule, bye-law or form, made or issued under any law in respect of such ¹ [municipal area] shall continue in force and be deemed to have been made, issued or imposed under the provisions of this Act in respect of the town ¹ [municipal area] constituted by such declaration unless and until it is superseded by any appointment, notification, notice, tax, order, scheme, licence, permission, bye-law or form, made, issued or imposed under this Act.

(4) Before any city ¹ [municipal area] is constituted into a town ¹ [municipal area], the procedure prescribed in section 9 shall, as far as may be, be followed.

(5) The property, rights and liabilities of the municipal council of a¹ [municipal area] declared as a town ¹ [municipal area] under sub-section (1) shall vest in the municipal council of the said ¹ [municipal area] with effect from the date specified in the notification.

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1. Substituted by Act 36 of 1994 w.e.f. 1.6.1994.