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The Punjab-Municipal-Corporation-Law-Extension-to-Chandigarh-Act-1994

Punjab · state statute
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The Punjab Municipal Corporation Law (Extension
to Chandigarh) Act, 1994
Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994
Act No. 45 of 1994
An Act to provide for the extension of the Punjab Municipal Corporation
Act, 1976 to the Union Territory of Chandigarh.
Be it enacted by Parliament in the Forty-fifth Year of the Republic of India as
follows:-
Section 1
1.  Short title and commencement. - (1) This Act may be called the Punjab Mu-
nicipal Corporation Law (Extension to Chandigarh) Act, 1994.
(2)  It shall be deemed to have come into force on the 24th day of May, 1994.
Section 2
2.  Extension and amendments of Punjab Act 42 of 1976.  - (1) The Punjab
Municipal Act, 1976 is hereby extended to, and shall be in force in, the Union Ter-
ritory of Chandigarh.
(2)  With effect from the commencement of this Act, - 
(a)  the references, in the Punjab Municipal Corporation Act, 1976 (Punjab Act
42 of 1976), to State, authorities, or City mentioned in column  1 of Part
I of the Schedule annexed to this Act shall be construed as if references
therein to State, Authorities, or City respectively mentioned or referred to
opposite thereto in column 2 of the Part;
(b) the Punjab Municipal Corporation Act, 1976 (Punjab Act 42 of 1976) shall
be amended as specified in Part II of the Schedule.
Section 3
3.  Repeal of Punjab Act III of 1911 and savings. - (1) The Punjab Municipal
Act, 1911 insofar as it applies to the Uni on Territory of Chandigarh or any part
thereof shall stand repealed on the coming into force of this Act :
Provided that the repeal shall not affect :-
(a)  the previous operation of the Punjab Municipal Act, 1911 (Punjab Act III
of 1911) so repealed or anything duly done or suffered thereunder, or
(b)  any right, privilege, obligation or liability acquired, accrued or incurred
under the said Act so repealed, or 
(c)  any investigation, legal proceeding or remedy in respect of any such right,
privilege, obligation or liability as aforesaid, 
and any such investigation, legal proceeding or remedy may be instituted, con-
tinued or enforced as if this Act had not been passed :
Provided further that, subject to the preceding proviso, anything done or any
action taken (including any appointment or delegation made, notification,
instruction or direction issued, fo rm or bye-law framed, certificate ob-
tained, permit or licence granted or registration effected) under such Act
shall be deemed to have been done or taken under the corresponding pro-
visions of the Act not extended to that Union Territory, and shall continue
to be in force accordingly unless and until superseded by anything done or
any action taken under the said Act.
(2)  In every law or notification passed or issued before the commencement of
this Act in which reference is made to or to any Chapter or section or provision
of the said Act hereby repealed, such references, shall, so far as may be practicable
be taken to be made to the said Act or, their corresponding Chapter or section.
Section 4
4.  Transitory provision. - Notwithstanding anything contained in this Act, the
Central Government may, if necessary, appoint a person to be called the Special
Officer to exercise the powers and discharge the functions of the Municipal Cor-
poration of Chandigarh until the day on which the first meeting of the Corporation
is held after the commencement of this Act.
Section 5
5.  Repeal of Ordinance 7 of 1994 and saving.  - (1)  The Punjab Municipal
Corporation Law (Extension to Chandigarh) Ordinance, 1994 is hereby repealed.
(2)  Notwithstanding such repeal, anything done or any action taken under the
Ordinance so repealed shall be deemed to have been done or taken under the cor-
responding provisions of this Act.
Schedule
The Schedule
(See Section 2)
The Punjab Municipal Corporation Act, 1976
(Punjab Act 42 of 1976)
Part I
References Constructions
12
1. Punjab State
2. State of Punjab
3. Whole of Punjab State Union Territory of
Chandigarh
4. Whole of the State of Punjab
5. Punjab where it refers to the State of Punjab
6. Punjab Government
7. Government of Punjab
8. Government of the State of Punjab Administrator
9. State Government
10. The Government of Punjab
11. Government
12. Divisional Commissioner prescribed authority
2     Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Section 4
13. Director
14. Associate councillor Councillor
15. City Chandigarh
Part II
Section 2, -
(a) for clause (1), substitute -
β€˜(1) "Administrator" means the administrator of the Union Territory of
Chandigarh appointed by the President under Article 239 of the Constitu-
tion :
(1A) "backward classes" means any of the backward classes specified from
time to time by the Administrator and whose names are published in the
Official Gazette;
(b) omit clause (6);
(c) after clause (7), insert -
β€˜(7A) "Corporation" means the Municipal Corporation of Chandigarh consti-
tuted under this Act;’;
(d) after clause (8), insert -
β€˜(8A) "councillor", in relation to the Corporation, means a person elected or
nominated under sub-section (3) of Section 4;’;
(e) for clause (10), substitute -
β€˜(10) "district" means district of Chandigarh covering the entire area of the Un-
ion Territory of Chandigarh;
(10A) "District Planning Committee" means a Committee constituted under
Article 243ZD of the Constitution;’;
(f) omit clause (12);
(g) after clause (14), insert -
β€˜(14A) "Election Commission" means the Election Commission of the Union
Territory of Chandigarh referred to in Section 10;’;
(h) after clause (17), insert -
β€˜(17A) "Finance Commission" means the Finance Commission of the Union
Territory of Chandigarh referred to in Section 84A;’;
(i) for clause (23), substitute -
β€˜(23) "licensed architect", "licensed engineer" and "licensed plumber" means
respectively a person registered and licensed as architect, engineer and
plumber under Section 16 of the Cap ital of Punjab (Development and
Regulation) Act, 1952 (Punjab Act XXVII of 1952);’;
(j) after clause (26), insert -
β€˜(26A) "Municipality" means an institution of self-government constituted un-
der Article 243Q of the Constitution;
(26B) "Municipal area" means the territorial area of the Municipality as is no-
tified by the Administrator under Section 3 of the Act;’;
(k) after clause (36), insert -
Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule 3 
β€˜(36) "population" means the population as ascertained at the last preceding
census of which the relevant figures have been published;’;
(1) after clause (37), insert -
β€˜(37A) "prescribed authority" means such authority or officer as the Adminis-
trator may from time to time, by order to be published in the Official Ga-
zette, prescribe:
Provided that the Administrator may prescribe different authorities or of-
ficers for different provisions of this Act;’;
(m) for clause (43), substitute -
β€˜(43) "public street" means any street or the soil below the surface thereof
which is specifically vested in the Corporation by an order of the Admin-
istrator issued in this behalf;’;
(n) for clause (51), substitute -
β€˜(51) "rural areas" means the areas of the Union Territory of Chandigarh which
are not urban areas;’;
(o) for clause (52), substitute -
β€˜(52) "Scheduled Caste" means any of the Scheduled Castes specified in Part
II of the Schedule of the Constitution (Scheduled Castes) (Union Territo-
ries) Order, 1951;’;
(q) for clause (60) substitute -
β€˜(60) "urban areas" means such areas as the Administrator may, having regard
to the population of the area, density of the population therein, the revenue
generated for local administration, the percentage of employment in non-
agricultural activities, the economic importance or such other factors as he
may deem fit, specify to be urban area by notification in the Official Ga-
zette;’;
After Section 2, insert -
"2A.  The application of certain definitions of the Capital of Punjab (Devel-
opment and Regulation) Act, 1952. - The words used and not defined in this Act,
but defined in the Capital of Punjab  (Development and Regulation) Act, 1952
(Punjab Act XXVII of 1952) shall have the meanings respectively assigned to
them in that Act."
For Section 3, substitute -
"3.  Declaration of area to be municipal area.  - (1) For the purposes of this
Act, the Administrator shall by notification, specify such territorial area of the Un-
ion Territory of Chandigarh to be the Municipal area of the Municipal
Corporation of Chandigarh.
(2)  The Administrator may, from time to time, after consultation  with the Cor-
poration, by notification, after the limit specified under sub-section (.) so as to
include therein or to exclude therefrom such area as may be specified in the no-
tification.  The Corporation shall send its  views to the Administrator within a
period of three months of the date on which  it is first consulted.
(3)  The power to issue a notification under sub-section (2) shall be subject to the
condition of previous publication.
(4) When the limits specified under sub-section (1) are altered so as to include
4     Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule
therein any area, this Act, and except as the Administrator may otherwise by no-
tification direct, all rules, notifications, bye-laws, orders, directions and powers
made, issued or conferred and all taxes and fees, imposed under this Act and in
force throughout the area specified under sub- section (1) shall apply to such in-
cluded area."
Section 4, -
(a) for sub-section (1), substitute, -
"(1) for the purposes of carrying out the provisions of this Act, there shall be
a corporation charged with the municipal government, to be known as the
Municipal Corporation of Chandigarh."
(b) in sub-section (2) for "Every", substitute "The";
(c) for sub-section (3), substitute -
"(3) The Corporation shall be composed of the following members, namely:-
(i) members to be directly elected, representing wards;
(ii) nine members with voting rights to be nominated by the Administrator,
from amongst the persons who are eminent or distinguished in public af-
fairs or those who have special knowle dge or practical experience in re-
spect of municipal administration."
Section 5. - In sub-section (2) - 
(i)  in the first proviso, for "forty and more than fifty", substitute "twenty";
(ii) omit second proviso.
For Section 6, substitute -
"6.  Reservation of seats for women, Scheduled Castes and backward
classes. - (1) Seats shall be reserved for women belonging to the Scheduled
Castes, from amongst the seats reserved under sub-section (4) of Section 5 for the
Scheduled Castes the number of such seats being determined by the Administrator
by an order published in the Official Gazette, which shall not be less than one-
third of the total number of seats reserved for the Scheduled Castes.
(2)  Seats shall be reserved for women, the number of such seats being deter-
mined by an order published in the Official Gazette by the Administrator which
shall not be less than one-third (including the number of seats reserved for women
belonging to the Scheduled Castes) of the total number of seats to be filled up by
direct election :
Provided that the seats reserved for the Scheduled Castes or for women (in-
cluding those belonging to the Scheduled Castes) shall be allotted by ro-
tation to different wards in such a manner as the Administrator may, by
Order published in the Official Gazette in this behalf, determine.
(3) The reservation of seats under sub-section (4) of Section 5 and under sub-
section (1) of this section shall cease to have effect on the expiration of the period
specified in Article 334 of the Constitution.
(4) The Administrator may, if he considers it necessary, by an order published
in the Official Gazette, direct that such number of seats as may be specified in the
order shall be reserved in favour of backward classes of citizens :
Provided that, when a backward class is deleted by an order of the Adminis-
Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule 5 
trator, the member elected from such class shall not cease to hold office
merely as a result of such deletion and shall hold office as he would have
held had the deletion not been made."
For Section 7, substitute -
"7.  Duration of the Corporation.  - (1) The Corporation, unless sooner dis-
solved under Section 407, shall continue for five years from the date appointed for
its first meeting and no longer.
(2) An election to constitute the Corporation shall be completed -
(a)  before the expiry of its duration specified in sub-section (1);
(b) before the expiration of a period of six months from the date of its disso-
lution :
Provided that where the remainder of the period for which the dissolved
Corporation would have continued is less than six months, it shall not
be necessary to hold any election under this sub-section for constituting
the Corporation for such period.
(3) The Corporation constituted upon its dissolution before the expiration of its
duration shall continue only for the remainder of the period for which the dis-
solved corporation would have continued under sub-section (1) had it not been so
dissolved."
Section 8. - For sub-section (2), substitute -
"(2) The Administrator shall, by an order in the Official Gazette, determine,-
(a) the number of wards; and
(b) extent of each ward.
(3) The Election Commission shall, by an Order in the Official Gazette, deter-
mine the wards in which seats shall be reserved for the Scheduled Castes,
for women and the manner in which seats shall be rotated under the proviso
to sub-section (2) of Section 6."
For Section 10, substitute -
"10.  Election to the Corporation. - (1) The superintendence, direction and
control of preparation of the electoral rolls for, and the conduct of all elec-
tions to the Corporation shall be vested in the Election Commission ap-
pointed under Section 7 of the Delhi Municipal Corporation Act, 1957 (6
of 1957), and the Election Commission so appointed under that section
shall be responsible for the functions conferred on the Election Commis-
sion under this sub-section.
(2) The Administrator shall, when so requested by the Election Commission;
make available to that Commission su ch staff which the Administrator
considers necessary for the discharge of the functions conferred on the
Commission by sub-section (1)."
Section 12. - In clause (a), for "twenty five years" substitute "twenty- one years".
Section 13, -
(i) in sub-section (1), after clause (1), insert -
"(m) if he is so disqualified by or under any law for the time being  in force
for the purposes of elections to the House of the People : 
6     Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule
Provided that no person shall be disqualified on the ground that he is less
than twenty five years of age, if he has attained the age of twenty one
years;
(n) if he is so disqualified by or  under any law made by Parliament.";
(ii) in sub-section (2), after clause (c), insert -
"(d) a person shall not be disqualified for being nominated as a member of
the Corporation on the ground that he holds office of profit for the pur-
poses of election to the House of the People under any law for the time
being in force.".
After Section 13, insert -
"13A.  Decisions on questions as to disqualification of members. - (1) If any
question arises as to whether a member has become subject to any disqualifica-
tions mentioned in Section 13, the question shall be referred for decision of the
Administrator and his decision shall be final."
Section 15, - 
(i) omit sub-section (2);
(ii) in sub-section (3), for "Director", substitute "Administrator".
Section 16, -
(i) in sub-section (1), for "Director", substitute "Administrator";
(ii) in the proviso to sub-section (1), for "four", substitute "six";
(iii) in sub-section (2), -
(a) in the opening portion, for "Scheduled Castes", substitute "Scheduled
Castes, backward classes or for the women, as the case may be,";
(b) after the words "Scheduled Castes" occurring at the end, add "back-
ward classes or be a woman".
Section 17, -
(a) Omit "or co-opted" and "or co-option";
(b) for "Director", substitute "Election Commission".
Section 35. - In sub-section (1), omit "other than an associated councillor".
After Section 35, insert -
"35A.  Vacation of seats in case of multiple membership.  - No councillor
shall be a member both of the Corporati on and Parliament and if a person is so
chosen, then at the expiration of fourteen days from the date of the publication in
the Gazette of India, or as the case may be, in the Official Gazette whichever is
later, that he has been so chosen that person’s seat in Parliament shall become va-
cant unless he has previously resigned his seat in the Corporation."
Section 36. - For sub-section (1), substitute -
"(1) If a councillor becomes subject to any of the disqualifications mentioned
in Section 13, his seal shall thereupon become vacant.
(1A) If during three successive months, a councillor is, without permission of
the Corporation, absent from all meetings thereof, the Corporation may de-
clare his seat vacant."
Section 38, -
Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule 7 
(a) for sub-sections (1), (2) and (2A), substitute -
"(1) The Corporation shall, at its first meeting in each year, elect one of its
elected members to be the Chairperson to be known as the Mayor and the
other two such members to be the Senior Deputy Mayor and the Deputy
Mayor of the Corporation :
Provided that during the duration of the Corporation, the office of the
Mayor shall be reserved in favour of a member who is a woman for the
first and the fourth year of the Corporation and in favour of a member
belonging to a Scheduled Caste in the third year of the Corporation";
(b) after sub-section (3), insert -
"(3A) If the vacancy be a casual vacancy in the office of the Mayor and is
reserved for a woman or for a member belonging to the Scheduled
Caste, the vacancy shall be filled by electing one of the councillors
from amongst women or members of the Scheduled Castes, as the case
may be.";
(c) for sub-section (6), substitute -
"(6) The Mayor may obtain reports from the Commissioner on any matter
connected with the municipal government of Chandigarh."
After Section 41, insert
"41A Wards Committees.  - (1) There shall be constituted such number of
Wards Committees consisting of one or more wards, within the territorial area of
the Corporation as the Administrator may, from time to time, by order published
in the Official Gazette, determine.  The order shall indicate the name of the Wards
Committee and also the extent of the area comprised within the jurisdiction of
such Committee.
(2)  Each Wards Committee shall consist of 
(a) all the councillors, elected from the wards in the territorial jurisdiction
of the Committee;
(b) the person, if any, nominated by the Administrator, under clause (ii) of
sub-section (3) of Section 4 if his name is registered as an elector
within the territorial limits of the Committee;
(c) such number of persons, as may be prescribed, to be nominated by the Ad-
ministrator.
41B.  Chairperson of Wards Committee. - (1) The Wards Committee shall, at
its meeting in each year, elect one of its members who is a councillor to be Chair-
person :
Provided that where a Wards Committee consists of one ward only, the coun-
cillor representing that ward in the Corporation shall be the Chairperson of
that Committee.
(2) The Chairperson of the Wards Committee shall hold office from the date of
his election until the election of his successor in office unless in the meantime, he
resigns his office as Chairperson.
(3) On the occurrence of any casual vacancy in the office of the Chairperson, the
Wards Committee shall, within one month of occurrence of such a vacancy, elect
one of its members who is a councillor as Chairperson :
Provided that where a vacancy has arisen on the resignation or death of the only
8     Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule
councillor on the Committee, the Administrator may appoint any other
councillor as Chairperson of the Ward Committee till election is held to fill
the vacancy in due course.
41C.  Resignation of Chairperson and members of Wards Committee. - (1)
Any member of the Wards Committee may resign his office by writing under his
hand addressed to the Chairperson and delivered to the Commissioner and the
Chairperson may resign his office by writing under his hand addressed to the
Mayor and delivered to the Commissioner.
(2) A resignation under sub-section (1) shall take effect from the date specified
for the purpose in writing referred to in that sub-section, or if no such date is speci-
fied, from the date of its receipt by the Chairperson or the Commissioner,
whichever is later.
41D.  Functions of Wards Committee. - (1) Subject to the provisions of this
Act, a Wards Committee shall exercise the powers and perform the functions as
may be determined from time to time by the Corporation by resolution.
(2) When any question arises as to whether any matter falls within the purview
of the Wards Committee or the Corporation it shall be referred to the Corporation
and its decision thereon shall be final.
41E. Special Committees. - (1) The Administrator may, by order published in
the Official Gazette constitute one or more Special Committees in addition to
Wards Committees and the Committees referred to in Section 42, as he thinks fit
for the exercise of any power or discharge of any function which the Corporation
may, by resolution delegate to them or  for inquiring into, reporting or advising
upon any matter which the Corporation may refer to them.
(2) Any such Committee may consist of one or more councillors and such other
persons having special knowledge or prac tical experience as the Administrator
may nominate representing various interests which he may think fit, such as in-
dustry, commerce, labour, literature, science, art and social services.
41F.  Constitution of District Planning Committees. - (1) There shall be con-
stituted in the district, A District Pl anning Committee to consolidate the plans
prepared by the Corporation and the Panchayats in the District, and to prepare a
draft development plan for district as a whole.
(2) The manner in which the seats in the District Planning Committee consti-
tuted under sub-section (1) shall be filled, the functions which may be assigned to
such Committee and the manner in which the Chairperson of such Committee
shall be chosen, shall be as prescribed by the Government, subject, however, to
the provisions of Article 243ZD of the Constitution.
(3)  In preparing the draft development plan of the district, the District Commit-
tee shall have regard to -
(i) the matter of common interest between the Panchayats and Municipalities
in the district including special planning, sharing of water and other physi-
cal and natural resources, the integrated development of infrastructure and
environment conservation; and 
(ii) the extent and type of available resources whether financial or otherwise.
(4) While preparing the draft development plan of the district, the District Plan-
Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule 9 
ning Committee shall consult such institutions and organisations as the Govern-
ment may, by order, specify.
(5) The Chairperson of District Planning Committee shall forward the draft de-
velopment plan as recommended by such Committee to the Government.
(6) Any matter relating to a Committee constituted under Section 41A or this
section, not expressly provided in this Act, the same may be provided in the rules
made in this behalf."
Section 42, -
(a) omit sub-sections (1), (2), (4) and proviso to sub-section (5);
(b) in sub-section (3), omit "a Building and",
Section 44, -
(a) in clause (q), add at the end "except such important parks and stadia as may
be specified by the Administrator by an order issued in this behalf";
(b) after clause (i), insert -
"(ii) the preparation of plans for economic development and social jus-
tice;".
Section 45. - In the opening portion, for "The Corporation", substitute -
"Subject to any general or special orders of the Administrator from time to
time, the Corporation".
Section 47, -
(i) for sub-section (1), substitute -
"(1) The Administrator shall by notification in the Official Gazette, appoint a
suitable office as the Commissioner of the Corporation.
(1A) The reporting authority on the work and conduct of the Commissioner
shall be the Adviser to the Administrator and reviewing and accepting
authority shall be the Administrator.";
(ii) after second proviso to sub-section (1), add -
Provided also that where the Commissioner holds a lien on any service under
any Government, the Administrator may at any time replace his services
at the disposal of that Government.";
(iii) in sub-section (3) -
(a) omit clause (a);
(b) omit "by giving a notice of at least one month to the Corporation".
Section 50 - Omit "for a term not exceeding two months".
Sections 65 and 66. - Omit "ad hoc" wherever it occurs.
For Section 71, substitute -
71.  Appointment of certain officers.  - (1) The Administrator shall appoint
suitable officers to be respectively, the Municipal Engineer, the Municipal Health
Officer, the Municipal Chief Accountant, the Municipal Secretary and the Mu-
nicipal Chief Auditor and may appoint one or more Assistant Commissioners and
such other officer or officers of a status equivalent to or higher than the status of
any of the officers specified earlier in this sub- section as the Administrator may
10     Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule
deem fit on such monthly salaries and allowances, if any, as may be fixed by the
Administrator. 
(2) The Municipal Chief Auditor shall not be eligible for any office under the
Corporation after he has ceased to hold his office.
71A. Schedule or permanent posts and creation of temporary posts.  - (1)
The Commissioner shall, from time to time prepare and lay before the Corpora-
tion two Schedules of posts other than those specified in Section 71 setting forth
the designations and grades of municipal officers and other municipal employees
who should be maintained permanently in the service of the Corporation indicat-
ing therein the salaries, fees and allowances which are proposed to be paid to such
officers and other employees.
(2)  Of the two Schedules referred to in sub-section (1), the first Schedule shall
deal with the category β€˜A’ posts and the second Schedule with other posts.
(3) The Corporation may sanction the two Schedules either without modifica-
tions or with such modifications as it thinks fit and thereafter may amend them if
it thinks it necessary.  Such sanction or amendment shall be subject to the ap-
proval of the Administrator.
(4)  The Commissioner may create for a period not exceeding six months any
group β€˜B’, β€˜C’ and β€˜D’ posts.
71B.  Power to make appointments. - (1) Subject to the provisions of Section
71, the power of appointing municipal officers and other municipal employees
whether temporarily or permanent shall vest in the Commissioner.
(2)  The claims of the members of the Scheduled Castes and backward classes
of citizens shall be taken into consideration consistently with the maintenance of
efficiency of administration, in the making of appointment of municipal officers
and other municipal employees. 
71C.  Recruitment. - (1) Notwithstanding anything contained in Section 71B,
the direct recruitment to various posts may be made by the Administrator through
such agencies as may be prescribed by him."
Section 75. - In clause (b), for "sub-section (7) of Section 71", substitute -
"the Schedules referred to in Section 71A".
After Section 84, insert -
"84A. The Finance Commission. - (1) The Finance Commission constituted
under Section 107A of the Delhi Municipal Corporation Act, 1957 (66 of 1957)
shall also be responsible, for the purposes of this Act, to review the financial po-
sition of the Corporation and to make recommendations to the Administrator as
to -
(a) the principles which should govern.
(i) the determination of taxes, duties, tolls and fees which may be assigned
to or appropriated by the Corporation;
(ii) the grant-in-aid to the Corporation from the Consolidated Fund of In-
dia;
(b) the measures needed to improve the financial position of the Corporation.
Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule 11 
(c) any other matter referred to the Finance Commission by the Administrator
in the interest of sound functioning of the Corporation.
(2) The Commission shall determine their procedure and shall have such powers
in the performance of their functions as may be prescribed.
(3) The Administrator shall cause every recommendation made by the Commis-
sion under this section together with an explanatory memorandum as to the action
taken thereon to be laid before each House of Parliament."
Section 87, - 
(a) in sub-section (3) in clause (b) in the proviso, for "five hundred rupees",
substitute "ten thousand rupees";
(b) in sub-section (4), for "five thousand rupees", substitute "one lakh rupees".
Section 90, -
(a) in sub-section (1), omit clauses (b) and (c);
(b) in sub-section (6), after "Punjab Motor Vehicles Taxation Act, 1924",
"Punjab Entertainments Duty Act, 1955" and "Punjab Entertainment Tax
(Cinematograph Shows) Act, 1954", add respectively "as applicable to the
Union Territory of Chandigarh".
Omit Sections 113 to 117 (both inclusive).
After Section 126 insert -
"126A. Prior approval of the Chief Administrator. - Notwithstanding any-
thing contained in Sections 122 to  125, every permission given by the
Commissioner shall be subject to the prio r approval of the Chief Administrator
appointed under clause (e) of Section 2 of the Capital of Punjab (Development and
Regulation) Act, 1952 (Punjab Act XXVII of 1952) and subject to such conditions
as the Chief Administrator may impose in this behalf."
Omit Section 127,
Section 152. - In the proviso to sub-section (1), for "one thousand rupees", sub-
stitute "ten thousand rupees".
Section 174. - Omit clause (c).
Section 225. - Omit sub-section (2).
Omit Sections 226 to 275 (both inclusive).
Omit Sections 286 to 312 (both inclusive).
Omit Sections 343 to 346 (both inclusive).
Section 397. - For sub-section (2), substitute -
"(2) Every rule, regulation or bye-law made under this Act shall be laid as
soons may be after it is made, before each House of Parliament, while it is
in session, for a total period of thirty days which may be comprised in one
session or in two or more successive sessions, and if, before the expiry of
the session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the rule, regu-
lation or bye-law or both the Houses agree that the rule, bye-law or regu-
lation should not be made, the rule, bye-law or regulation shall thereafter
12     Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule
have effect only in such modified form or be of no effect, as the case may
be, so, however, that any such modification or annulment shall be without
prejudice to the validity of anything previously done under that rule, regu-
lation or bye-law."
Section 399. - In sub-section (1), omit Parts B, C and D.
For Section 407, substitute -
"407.  Dissolution of Corporation. - (1) If, in the opinion of the Government,
the Corporation is not competent to perform its duties or persistently
makes default in the performance of duties imposed on it by or under this
Act or any other law for the time being in force or exceeds or abuses any
of its powers, the Government may, by an order published, along with the
reasons therefor, in the Official Gazette, dissolve such Corporation :
Provided that the Corporation shall be given a reasonable opportunity of being
heard before its dissolution.
(2)  When the Corporation is dissolved under sub-section (1), -
(i) all Councillors of the Corporation shall vacate their offices forthwith;
(ii) all powers and duties of the Corporation during its dissolution shall be ex-
ercised and performed by such persons or authority as the Government
may, by notification, appoint in his behalf; and 
(iii)  all property in possession of the Corporation shall be held by the Govern-
ment.
(3) Upon dissolution of the Corporation under sub-section (1), the Government
shall reconstitute the Corporation as specified under sub-section (1) of Section 4,
and election to reconstitute such Corporation shall be completed before the expi-
ration of a period of six months from the date of dissolution :
Provided that where the remainder of the period for which the dissolved Cor-
poration would have continued, is less than six months, it shall not be nec-
essary to hold any election under this sub-section for reconstituting the
Corporation for such period.
(4)  The Corporation reconstituted upon the dissolution of the existing Corpora-
tion before the expiration of its duration, shall continue only for the remainder of
the period for which the dissolved Corporation would have continued under Sec-
tion 7 had it not been so dissolved."
After Section 407, insert, -
"407A.  Appointment of a person to carry out the work of Corporation in
certain cases. - (1) All powers and duties of the Corporation may, till it remains
dissolved and is reconstituted shall be exercised and performed by such persons
or authority as the Government may appoint in this behalf.
(2) All properties vested in the Corpor ation shall till the Corporation remains
dissolved and is reconstituted shall vest in and devolve upon the Government."
After Section 424, insert -
"424A.  Application of the Capital of Punjab (Development and Regula-
tion) Act, 1952 and the Punjab New Capital (Periphery) Control Act, 1952.
- Notwithstanding anything contained in this Act, the provisions of the Capital of
Punjab (Development and Regulation) Act, 1952 (Punjab Act XXVII of 1952)
Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule 13 
and of the Punjab New Capital (Periphery) Control Act, 1952 (Punjab Act 1 of
1952) and the rules, regulations, bye-laws, notifications, orders, scheme, form or
notice made thereunder shall continue to be applicable in relation to the develop-
ment and regulation of the Union Territory of Chandigarh as immediately before
the commencement of the Punjab Muni cipal Corporation Law (Extension to
Chandigarh) Act, 1994."
After Section 428, insert -
"428A. Special provision as  to transferred functions.  - (1) In this section
"transferred functions" means such functions of the administration which on the
commencement of the Punjab Municipal Corporation Law (Extension to Chandi-
garh) Act, 1994, become the functions of the Corporation.
(2)  On and from the commencement of the Punjab Municipal Corporation Law
(Extension to Chandigarh) Act, 1994, - 
(a) all stores, articles and other movable properties belonging to the admini-
stration immediately before the specified date and utilised for or in connec-
tion with the transferred functions shall pass to and vest in the Corporation;
(b) all appointments, notifications, orde rs, schemes, rules, forms, notices or
bye-laws made or issued or any licence or permission granted by the ad-
ministration immediately before such specified date in connection with the
transferred functions shall continue in force and be deemed to have been
made, issued or granted by the Corporation unless and until they are super-
seded by any appointment, notification, order, scheme, rule, form, notice
or bye-law made or issued or any licence or permission granted by the Cor-
poration;
(c) all debts, obligations and liabilities incurred, all contracts entered into and
all matters and things engaged to be done by, with or for the administration
immediately before such specified date for or in connection with the trans-
ferred functions shall be deemed to have been incurred, entered into, en-
gaged to be done by, with or for, the Corporation;
(d) all assessments, valuations, measur ements or divisions made by the ad-
ministration immediately before su ch commencement or in connection
with the transferred functions shall continue in force and be deemed to
have been made by the Corporation unless and until they are superseded by
any assessment, valuation, measurement or division made by the Corpo-
ration;
(e) all rates, taxes, fees, rents and other sums of money due to the administra-
tion in relation to the transferred functions immediately before such com-
mencement shall be deemed to be due to the Corporation;
(f) all rates, fees, rents and other charges leviable in, or in relation to, the trans-
ferred functions shall, unless and until they are carried by the Corporation
continue to be levied at the same rate at which they are being levied by the
administration immediately before such commencement;
(g) all suits and transactions and othe r legal proceedings instituted or which
might have been instituted by or against the administration immediately
before such commencement for any ma tter in relation to the transferred
functions may be continued or instituted by or against the Corporation.
(h) every officer and other employee serving under the administration imme-
14     Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule
diately before such commencement in connection with the transferred
functions shall be transferred to and become an officer or other employee
of the Corporation with such designation as the Corporation may deter-
mine and hold office by the same tenure and at the same remuneration and
on the same terms and conditions of service as he would have held the
same if the Corporation had not been established and shall continue to do
so unless and until such tenure, remuneration and terms and conditions are
duly altered by the Corporation :
Provided that the tenure, remuneration and terms and conditions of service of
any such officer or other employee shall not be altered to his disadvantage
without the previous sanction of the Administrator :
Provided further that the Corporation may employ any such officer or em-
ployee in the discharge of such functions as it may think proper and every
such officer or other employee shall discharge those functions accord-
ingly.
(3) As soon as may be after the commencement of the Punjab Municipal Corpo-
ration Law (Extension to Chandigarh) Act, 1994, the Administrator shall decide,-
(a)  which stores, articles and other movable properties referred to in clause (a)
of sub-section (2) have been utilised by the administration for or in connec-
tion with the transferred functions;
(b) which debts, obligations, liabilities, contracts, matters and things referred
to in clause (c) of the said sub-section have been incurred, entered into, or
engaged to be done by, with or for the administration or in connection with
the transferred functions;
(c) which officers and other employees referred to in clause (h) of that sub-sec-
tion served under the administration in connection with the transferred
functions.’.
Omit Section 431.
Omit Schedule I.
Third Schedule - Omit "Sections 258, 259(1), 260(1), 263(4), 265, 266(1) and
(2), 268, 269, 270, 271, 272(1) and (2), 273(1), (2) and (3) and Section 274(1), and
the entries thereagainst in the second, third and fourth columns".
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Punjab Municipal Corp. Law (Extension to Chd.) Act, 1994, Schedule 15 

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