(1) If at any time the State Government is satisfied that
the Municipality is not competent to perform, or persistently
makes default in the performance of the duties imposed on it by or
under this Act or otherwise by law, or has exceeded, or abused its
powers, the State Government may, by an order published
alongwith the reasons thereof, in the Official Gazette, declare the
Municipality to be incompetent or in default, or to have exceeded
or abused its powers, as the case may be, and may dissolve such
Municipality as from a date to be specified in the order of
dissolution:
Provided that no action shall be taken under this subsection unless the Municipality through its Chairperson has been
afforded a reasonable opportunity of submitting an explanation and
of being heard, if the Municipality so desires:
Provided further that no order under this sub-section shall
be passed-
(i) unless the State Government has drawn up a
statement setting out distinctly the charges against
the Municipality and sent the same for inquiry in
the prescribed manner and findings to a Tribunal
consisting of a Chairman and not less than two
members, constituted in the prescribed manner, or
(ii) otherwise than in conformity with such findings.
Explanation.-If for any reason the number of vacancies in
a Municipality exceeds two-thirds of the total number of seats, the
Municipality shall be deemed to be not competent to perform the
duties imposed on it by or under this Act.
(2) The State Government shall dissolve the Municipality
if at any time the number of its elected members falls short of two
third of its total members.
(3) When a Municipality is dissolved under sub-section (1)
or any other provision of this Act, the following consequences
shall ensue: -
(a) all members of the Municipality including the
Chairperson and the Vice-Chairperson shall,
on the date specified in the order of
dissolution, vacate their respective offices but
without prejudice to their eligibility for reelection or re-appointment; and
(b) all powers and duties of the Municipality shall,
during the period of dissolution, be exercised
and performed by such officer as an
Administrator as the State Government
appoints in this behalf.
(4) An election to constitute a Municipality shall be
completed before the expiration of a period of six months from the
date of its dissolution:
Provided that where the remainder of the period for which
the dissolved Municipality would have continued is less than six
months, it shall not be necessary to hold any election under this
sub-section for constituting the Municipality for such period.
(5) A Municipality constituted upon the dissolution of
Municipality before the expiration of its duration shall continue
only for the remainder of the period for which the dissolved
Municipality would have continued under section 7 had it not been
so dissolved.
(6) An order of dissolution made under this section together
with statement of the reasons thereof shall be laid before the House
of the State Legislature, as soon as may be, after it has been made.
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Section 322