363. Amalgamation of ¹ [two contiguous smaller urban areas].--

(1) The Government may, at any time after consulting the municipal councils concerned and considering objections, if any, declare by notification that ¹ [two contiguous smaller urban areas] shall, with effect from the date and with the name, to be specified in the notification, be amalgamated and be deemed to be a single ¹ [smaller urban area] constituted under this Act.

(2) Any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made, issued or imposed in respect of the ¹ [smaller urban areas amalgamated] shall continue in force and be deemed to have been made, issued or imposed in respect of the ¹ [municipal area] constituted by the declaration under sub-section (1):

Provided that the ¹ [Governor] may, by notification, direct that from the date specified in the declaration under sub-section (1), only such appointments, notifications, notices, taxes, orders, schemes, rules, bye-laws and forms aforesaid shall be applicable to the ¹ [municipal area] constituted by such declaration and only the said appointments, notifications, notices, taxes, orders, schemes, rules, bye-laws and forms aforesaid shall be applicable to the ¹ [municipal area] constituted by such declaration and only the said appointments, notifications, notices, taxes, orders, schemes, rules, bye-laws, and forms shall thereupon continue in force.

(3) The property, rights and liabilities of the municipal councils of the¹ [smaller urban areas amalgamated] and declared to be a single town ¹ [smaller urban area] under sub-section (1) shall vest, in the municipal council of the said single ¹ [smaller urban area] with effect from the date specified in the notification.

(4) Notwithstanding anything to the contrary contained in this Act, --

(a) until the reconstitution of the municipal council in accordance with the provisions of this Act, --

(i) the amalgamated municipal council shall consist of the councillors of the two municipal councils, holding office immediately before the date of amalgamation,

(ii) the two persons nominated by the Government from among the persons holding the offices of president and vice-president of the two municipal councils immediately before the date of amalgamation, to be the president and vice-president, respectively, shall be the president and vice president of the amalgamated municipal council, until the election under subclause (i) of clause (b), and shall have all the powers and be subject to all the duties and liabilities of a municipal council, president, vice-president or councillors, as the case may be, under this Act;

(b) the municipal council as constituted under clause (a) shall, at its first meeting after the date of amalgamation, --

(i) elect one of its members to be the president and one of its members other than the president to be the vice-president, and

(ii) elect members of the committees under section 63;

(c) the term of office of the president, vice-president and councillors referred to in clauses (a) and (b) shall, subject to the provisions of sections 16, 40, 41 and 42 expire on such dates as the Government may, by notification, specify;

(d) the Government may, by notification, make such provisions as appear to it be necessary or expedient, --

(i) for making omissions from, additions to, adaptations and modifications of the rules, bye-laws, notifications and orders referred to in sub-section (2) in their application to the amalgamated ¹ [municipal area];

(ii) for removing difficulties arising in connection with the working of the amalgamated municipal council until its reconstitution in accordance with the provisions of this Act.

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