The Punjab Municipal Act, 1999 Complete Act - Bare Act

THE PUNJAB MUNICIPAL ACT, 1999

(1) This Act may be called the Punjab Municipal Act, 1999.

(2) It extends to the whole of the State of Punjab excluding Cantonment areas therein.

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint in this behalf.

In this Act unless the context otherwise requires :-

(1) "Ad hoc Committee" means an Ad hoc Committee constituted by a Municipality under section 67;

(2) "Annual Value" means the value of any land or building fixed in accordance with the provisions of this Act and the regulations made thereunder for the purpose of assessment to property taxes;

(3) "Audit Authority" means the Examiner, Local Fund Accounts, Punjab;

(4) "Backward Classes" means such Backward Classes as the Government may, from time to time, by notification, declare;

(5) "balance sheet" means the balance sheet of the Municipality prepared under section 160;

(6) "budget estimate" means the budget estimate of the Municipality prepared under section 154;

(7) "budget grant" means the total sum entered on the expenditure side of budget estimate under a major head and adopted by the Municipality and includes any sum by which such budget grant may be increased or reduced by transfer from or to other heads in accordance with the provisions of this Act and the rules and regulations made thereunder;

(8) "building" means any shop, house, hut, outhouse, stable, a factory, an industrial shed and a temporary structure erected by means of tents and any other structure including structures raised for entertainment purposes whether roofed or not and whether used for the purposes of human habitation or otherwise and whether of masonry, bricks, wood, mud, thatch, metal or any other material whatever, and includes a wall and a well;

(9) "Chief Officer of a Municipality" or "Chief Officer" means "

(i) in relation to a Municipal Corporation, the Commissioner; and

(ii) in relation to a Municipal Council or a Nagar Panchayat, the Executive Officer;

(10) "City" means a larger urban area deemed to be a City under section 6;

(11) "Class A smaller urban area", "Class B smaller urban area" and "Class C smaller urban area" means a smaller urban area classified as such by the Government under Section 10;

(12) "Commissioner" means the Commissioner of the Municipal Corporation appointed under section 79;

(13) "Councillor" means a member of Municipal Corporation referred to in clause (35);

(14) "Dangerous disease" means-

(i) Cholera, plague, chicken-pox, small-pox, tuberculosis, leprosy, enteric fever, cerebrospinal meningitis, diphtheria, dengue fever, acquired immunodeficiency syndrome (AIDS), hepatitis B and C, cerebral malaria and viral pneumonia; and

(ii) any other epidemic, endemic or infectious disease which the Government may, in relation to any municipal area or group of municipal areas, by notification, declare to be a dangerous disease for the purpose of this Act;

(15) "Debenture" means the debenture referred to in Section 146;

(16) "Deputy Commissioner" means the Deputy Commissioner of the district and includes an Additional Deputy Commissioner or any other person authorised by the Government to perform the functions of the Deputy Commissioner under this Act;

(17) "Deputy Mayor" means the Deputy Mayor of a Municipal Corporation elected under section 23;

(18) "Director" means the officer appointed by the Government to perform the functions of the Director, Local Government, under this Act, and includes an Additional Director, Local Government, a Joint Director, Local Government, or any other officer of the Government authorised by it to perform the functions of the Director, under this Act;

(19) "Divisional Commissioner" means the Commissioner of the Division in which the Municipal Corporation is situated;

(20) "electoral roll" means the electoral roll for the municipal area prepared in accordance with the provisions of the Punjab State Election Commission Act, 1994 (Punjab Act 19 of 1994);

(21) "Establishment Schedule" means the Establishment Schedule of the Municipality prepared under section 154;

(22) "Executive Officer" means the Executive Officer of a Municipal Council or a Nagar Panchayat, as the case may be;

(23) "ex-officio member" means a member referred to in Clause (b) of section 18, or clause (b) of section 35, or clause (b) of section 52, as the case may be;

(24) "Finance Commission" means the Punjab Finance Commission constituted under sub-section (1) of section 3 of the Punjab Finance Commission for Panchayats and Municipalities Act, 1994 (Punjab Act 8 of 1994);

(25) "Financial statement" means the financial statement of the Municipality prepared under section 159;

(26) "Government" means the Government of the State of Punjab;

(27) "Hazardous process" means the hazardous process defined in Clause (cb) of section 2 of the Factories Act, 1948 (Act 63 of 1948);

(28) "highly polluting industry" means such industry as the Government may, having regard to the nature of pollution caused by it, by notification, declare to be a highly polluting industry;

(29) "Industrial Township" means the area specified as such under the first proviso to sub-section (1) of section 17 or under the first proviso to sub-section (1) of section 34 or under the first proviso to sub-section (1) of section 51, as the case may be;

(30) "land" includes benefits to arise out of land, things attached to the earth or permanently fastened to anything attached to the earth and rights created by law over any street;

(31) "Larger urban area" means a larger urban area specified as such under section 5;

(32) "Local Authority" includes a Municipal Corporation, or a Municipal Council or a Nagar Panchayat constituted under this Act, a Gram Panchayat, a Panchayat Samiti and a Zila Parishad constituted as such under the Punjab Panchayati Raj Act, 1994 (Punjab Act 9 of 1994), and a Town Improvement Trust constituted as such under the Punjab Town Improvement Act, 1922 (Punjab Act 4 of 1922), as the case may be;

(33) "market value" means in the case of a land the present value of the land and in the case of a building, the estimated cost of erecting the building as assessed under this Act, and the rules or regulations made thereunder;

(34) "Mayor" means the Mayor of a Municipal Corporation elected under section 23;

(35) "Member" in relation to a Municipal Corporation or a Municipal Council or a Nagar Panchayat means a member thereof and includes elected, ex officio and nominated members;

(36) "misconduct" means violation of the Code of Conduct prescribed by rules;

(37) "multi-storeyed building" means a building consisting of four storeys and above or a building exceeding an height of twelve metres irrespective of the number of its storeys;

(38) "Municipal Accounts Committee" in relation to a Municipal Corporation or a Class 'A' Municipal Council, means the Municipal Accounts Committee constituted under section 167;

(39) "Municipal Area" means the territorial area of a Municipal Corporation, or a Municipal Council or a Nagar Panchayat, as the case may be;

(40) "Municipal Assessment Book" means the Municipal Assessment Book maintained under section 196;

(41) "Municipal Corporation" means a Municipal Corporation constituted under section 17 for a larger urban area and includes the Municipal Corporation duly constituted under the Punjab Municipal Corporation Act, 1976, existing immediately before the commencement of this Act;

(42) "Municipal Council" means a Municipal Council constituted under section 34 for a smaller urban area and includes the Municipal Council duly constituted under the Punjab Municipal Act, 1911, existing immediately before the commencement of this Act;

(43) "Municipal Fund" means the Municipal Fund constituted under section 137;

(44) "Municipal Property Tax Committee" means the Municipal Property Tax Committee constituted under section 187;

(45) "Municipal Services" means the Municipal Services constituted under section 108;

(46) "Municipality" means an institution of self-government and defined as "

(i) a Municipal Corporation in clause (41);

(ii) a Municipal Council in clause (42); and

(iii) a Nagar Panchayat in clause (47);

(47) "Nagar Panchayat" means a Nagar Panchayat constituted under section 51, and includes the Nagar Panchayat duly constituted under the Punjab Municipal Act, 1911 existing immediately before the commencement of this Act;

(48) "Nationalised Bank" means a bank specified in column 2 of the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Act 5 of 1970);

(49) "non-residential building" means any building referred to in clauses (b) to (i) of sub-section (2) of section 398;

(50) "notification" means a notification published in the Official Gazette of the Government;

(51) "Nuisance" includes any act, omission or thing which causes or is likely to cause injury, danger, annoyance or offence to the sense of sight, smell, hearing or which is or may be dangerous to the life or injurious to health or property;

(52) "occupier" includes any person for the time being paying or liable to pay to the owner the rent or fee or contractual payment of adjustment of rent or fee or any portion thereof or damages on account of the occupation of any land or building, and also includes a rent-free tenant:

Provided that an owner living in or otherwise using his own land or building shall be deemed to be the occupier thereof;

(53) "Official Gazette" means the Official Gazette of the State of Punjab;

(54) "owner" includes the person for the time being receiving the rent of any land or building or any part thereof, whether on his own account or as agent or trustee for any person or society or for any religious or charitable purpose, or as a receiver who would receive such rent if the land or building or any part thereof were let to a tenant;

(55) "other employees" means the employees including Clerks, lower in rank to the posts contained in the Municipal Services constituted under section 108;

(56) "population" means the population as ascertained at the last preceding census of which the relevant figures have been published;

(57) "premises" means any land or building or part of a building and includes "

(a) the garden, ground and out-houses, if any, appertaining to a building, or part of building; and

(b) any fitting affixed to a building or part of a building for the more beneficial enjoyment thereof;

(58) "prescribed" means prescribed by rules made under this Act;

(59) "President" means the President of a Municipal Council or of a Nagar Panchayat, as the case may be;

(60) "Proceedings Books" means the Proceedings Book maintained under section 84;

(61) "public street" means any street which vests in the Municipality as a public street or the soil below the surface of which vests in the Municipality or which under the provisions of this Act becomes, or is declared to be a public street;

(62) "Region" means an area declared as such in the State for the purpose of administration of the Municipalities;

(63) "Regional Deputy Director, Local Government" means the officer appointed by the Government to perform the functions of the Regional Deputy Director, Local Government, under this Act;

(64) "regulation" means a regulation made by the Municipal Corporation or the Municipal Council or the Nagar Panchayat, as the case may be, under this Act;

(65) "residential building" means a residential building referred to in clause (a) of sub-section (2) of section 398;

(66) "revenue generated from tax and other sources" in, -

(a) clause (ii) of the proviso of sub-section (1) of section 3;

(b) clause (ii) of the proviso to sub-section (1) of section 8; and

(c) clause (ii) of the proviso to sub-section (1) of section 13, shall not include "

(i) the taxes distributed to the Municipalities under section 177;

(ii) loans and grants from the Government; and

(iii) loans and grants from the Government of India or any other institution or source;

(67) "rule" means a rule made by the Government under this Act;

(68) "Scheduled Caste" means the Scheduled Caste specified in respect of the State of Punjab in the Constitution (Scheduled Caste) Order, 1950, for the time being in force;

(69) "Secretary" means the Secretary of a Municipal Corporation, appointed under section 84;

(70) "section" means a section of this Act;

(71) "Senior Deputy Mayor" means the Senior Deputy Mayor of a Municipal Corporation, elected under section 23;

(72) "Senior Vice-President" means the Senior Vice-President of a Class 'A' or a Class 'B' Municipal Council, as the case may be;

(73) "smaller urban area" means the smaller urban area specified as such under section 9;

(74) "Standing Committee" means, -

(i) the Standing Committee of a Municipal Corporation constituted under Section 20; or

(ii) the Standing Committee of a Class 'A' or Class 'B' Municipal Council constituted under section 37, as the case may be;

(75) "State Election Commission" means the Election Commission established under section 3 of the Punjab State Election Commission Act, 1994 (Punjab Act 19 of 1994);

(76) "street" shall mean any road, footway, square, court, alley, gully or passage, accessible, whether permanently or temporarily to the public, and whether a thoroughfare or not; and shall include every vacant space, notwithstanding that it may be private property and partly or wholly obstructed by any gate, post, chain or other barrier, if houses, shops or other buildings abut thereon, and if it is used by any persons as means of access to or from any public place or thoroughfare, whether such persons be occupiers of such building or not, but shall not include any part of such space which the occupier of any such buildings has right at all hours to prevent all other persons from using as aforesaid, and shall include also the drains or gutters therein, or on either side, and the land, whether covered or not by any pavement, verandah or other erection, upto the boundary of any abutting property not accessible to the public;

(77) "Subject Committee" means the Subject Committee of a Municipal Corporation or a Class A Municipal Council constituted under section 66;

(78) "trade effluent" includes any liquid, gaseous or solid substance which is discharged from any premises used for carrying on any industry, operation or process, or treatment and disposal system other than domestic sewage;

(79) "transitional area" means a transitional area specified as such under section 14;

(80) "utility agency" means any utility agency which provides service of any kind to the public including any department of Government of India or the State Government, any public sector undertaking or private organisation;

(81) "valuation register" means the valuation register maintained under section 186;

(82) "Vice President" means the Vice-President of a Municipal Council or of a Nagar Panchayat, as the case may be;

(83) "ward" means a territorial constituency provided under section 54;

(84) "Wards Committee" means a Wards Committee constituted under section 64; and

(85) "year" means a year commencing on the first day of April of a calendar year and ending on the 31st day of March, of the succeeding calendar year.

In this Act unless the context otherwise requires :-

(1) "Ad hoc Committee" means an Ad hoc Committee constituted by a Municipality under section 67;

(2) "Annual Value" means the value of any land or building fixed in accordance with the provisions of this Act and the regulations made thereunder for the purpose of assessment to property taxes;

(3) "Audit Authority" means the Examiner, Local Fund Accounts, Punjab;

(4) "Backward Classes" means such Backward Classes as the Government may, from time to time, by notification, declare;

(5) "balance sheet" means the balance sheet of the Municipality prepared under section 160;

(6) "budget estimate" means the budget estimate of the Municipality prepared under section 154;

(7) "budget grant" means the total sum entered on the expenditure side of budget estimate under a major head and adopted by the Municipality and includes any sum by which such budget grant may be increased or reduced by transfer from or to other heads in accordance with the provisions of this Act and the rules and regulations made thereunder;

(8) "building" means any shop, house, hut, outhouse, stable, a factory, an industrial shed and a temporary structure erected by means of tents and any other structure including structures raised for entertainment purposes whether roofed or not and whether used for the purposes of human habitation or otherwise and whether of masonry, bricks, wood, mud, thatch, metal or any other material whatever, and includes a wall and a well;

(9) "Chief Officer of a Municipality" or "Chief Officer" means "

(i) in relation to a Municipal Corporation, the Commissioner; and

(ii) in relation to a Municipal Council or a Nagar Panchayat, the Executive Officer;

(10) "City" means a larger urban area deemed to be a City under section 6;

(11) "Class A smaller urban area", "Class B smaller urban area" and "Class C smaller urban area" means a smaller urban area classified as such by the Government under Section 10;

(12) "Commissioner" means the Commissioner of the Municipal Corporation appointed under section 79;

(13) "Councillor" means a member of Municipal Corporation referred to in clause (35);

(14) "Dangerous disease" means-

(i) Cholera, plague, chicken-pox, small-pox, tuberculosis, leprosy, enteric fever, cerebrospinal meningitis, diphtheria, dengue fever, acquired immunodeficiency syndrome (AIDS), hepatitis B and C, cerebral malaria and viral pneumonia; and

(ii) any other epidemic, endemic or infectious disease which the Government may, in relation to any municipal area or group of municipal areas, by notification, declare to be a dangerous disease for the purpose of this Act;

(15) "Debenture" means the debenture referred to in Section 146;

(16) "Deputy Commissioner" means the Deputy Commissioner of the district and includes an Additional Deputy Commissioner or any other person authorised by the Government to perform the functions of the Deputy Commissioner under this Act;

(17) "Deputy Mayor" means the Deputy Mayor of a Municipal Corporation elected under section 23;

(18) "Director" means the officer appointed by the Government to perform the functions of the Director, Local Government, under this Act, and includes an Additional Director, Local Government, a Joint Director, Local Government, or any other officer of the Government authorised by it to perform the functions of the Director, under this Act;

(19) "Divisional Commissioner" means the Commissioner of the Division in which the Municipal Corporation is situated;

(20) "electoral roll" means the electoral roll for the municipal area prepared in accordance with the provisions of the Punjab State Election Commission Act, 1994 (Punjab Act 19 of 1994);

(21) "Establishment Schedule" means the Establishment Schedule of the Municipality prepared under section 154;

(22) "Executive Officer" means the Executive Officer of a Municipal Council or a Nagar Panchayat, as the case may be;

(23) "ex-officio member" means a member referred to in Clause (b) of section 18, or clause (b) of section 35, or clause (b) of section 52, as the case may be;

(24) "Finance Commission" means the Punjab Finance Commission constituted under sub-section (1) of section 3 of the Punjab Finance Commission for Panchayats and Municipalities Act, 1994 (Punjab Act 8 of 1994);

(25) "Financial statement" means the financial statement of the Municipality prepared under section 159;

(26) "Government" means the Government of the State of Punjab;

(27) "Hazardous process" means the hazardous process defined in Clause (cb) of section 2 of the Factories Act, 1948 (Act 63 of 1948);

(28) "highly polluting industry" means such industry as the Government may, having regard to the nature of pollution caused by it, by notification, declare to be a highly polluting industry;

(29) "Industrial Township" means the area specified as such under the first proviso to sub-section (1) of section 17 or under the first proviso to sub-section (1) of section 34 or under the first proviso to sub-section (1) of section 51, as the case may be;

(30) "land" includes benefits to arise out of land, things attached to the earth or permanently fastened to anything attached to the earth and rights created by law over any street;

(31) "Larger urban area" means a larger urban area specified as such under section 5;

(32) "Local Authority" includes a Municipal Corporation, or a Municipal Council or a Nagar Panchayat constituted under this Act, a Gram Panchayat, a Panchayat Samiti and a Zila Parishad constituted as such under the Punjab Panchayati Raj Act, 1994 (Punjab Act 9 of 1994), and a Town Improvement Trust constituted as such under the Punjab Town Improvement Act, 1922 (Punjab Act 4 of 1922), as the case may be;

(33) "market value" means in the case of a land the present value of the land and in the case of a building, the estimated cost of erecting the building as assessed under this Act, and the rules or regulations made thereunder;

(34) "Mayor" means the Mayor of a Municipal Corporation elected under section 23;

(35) "Member" in relation to a Municipal Corporation or a Municipal Council or a Nagar Panchayat means a member thereof and includes elected, ex officio and nominated members;

(36) "misconduct" means violation of the Code of Conduct prescribed by rules;

(37) "multi-storeyed building" means a building consisting of four storeys and above or a building exceeding an height of twelve metres irrespective of the number of its storeys;

(38) "Municipal Accounts Committee" in relation to a Municipal Corporation or a Class 'A' Municipal Council, means the Municipal Accounts Committee constituted under section 167;

(39) "Municipal Area" means the territorial area of a Municipal Corporation, or a Municipal Council or a Nagar Panchayat, as the case may be;

(40) "Municipal Assessment Book" means the Municipal Assessment Book maintained under section 196;

(41) "Municipal Corporation" means a Municipal Corporation constituted under section 17 for a larger urban area and includes the Municipal Corporation duly constituted under the Punjab Municipal Corporation Act, 1976, existing immediately before the commencement of this Act;

(42) "Municipal Council" means a Municipal Council constituted under section 34 for a smaller urban area and includes the Municipal Council duly constituted under the Punjab Municipal Act, 1911, existing immediately before the commencement of this Act;

(43) "Municipal Fund" means the Municipal Fund constituted under section 137;

(44) "Municipal Property Tax Committee" means the Municipal Property Tax Committee constituted under section 187;

(45) "Municipal Services" means the Municipal Services constituted under section 108;

(46) "Municipality" means an institution of self-government and defined as "

(i) a Municipal Corporation in clause (41);

(ii) a Municipal Council in clause (42); and

(iii) a Nagar Panchayat in clause (47);

(47) "Nagar Panchayat" means a Nagar Panchayat constituted under section 51, and includes the Nagar Panchayat duly constituted under the Punjab Municipal Act, 1911 existing immediately before the commencement of this Act;

(48) "Nationalised Bank" means a bank specified in column 2 of the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Act 5 of 1970);

(49) "non-residential building" means any building referred to in clauses (b) to (i) of sub-section (2) of section 398;

(50) "notification" means a notification published in the Official Gazette of the Government;

(51) "Nuisance" includes any act, omission or thing which causes or is likely to cause injury, danger, annoyance or offence to the sense of sight, smell, hearing or which is or may be dangerous to the life or injurious to health or property;

(52) "occupier" includes any person for the time being paying or liable to pay to the owner the rent or fee or contractual payment of adjustment of rent or fee or any portion thereof or damages on account of the occupation of any land or building, and also includes a rent-free tenant:

Provided that an owner living in or otherwise using his own land or building shall be deemed to be the occupier thereof;

(53) "Official Gazette" means the Official Gazette of the State of Punjab;

(54) "owner" includes the person for the time being receiving the rent of any land or building or any part thereof, whether on his own account or as agent or trustee for any person or society or for any religious or charitable purpose, or as a receiver who would receive such rent if the land or building or any part thereof were let to a tenant;

(55) "other employees" means the employees including Clerks, lower in rank to the posts contained in the Municipal Services constituted under section 108;

(56) "population" means the population as ascertained at the last preceding census of which the relevant figures have been published;

(57) "premises" means any land or building or part of a building and includes -

(a) the garden, ground and out-houses, if any, appertaining to a building, or part of building; and

(b) any fitting affixed to a building or part of a building for the more beneficial enjoyment thereof;

(58) "prescribed" means prescribed by rules made under this Act;

(59) "President" means the President of a Municipal Council or of a Nagar Panchayat, as the case may be;

(60) "Proceedings Books" means the Proceedings Book maintained under section 84;

(61) "public street" means any street which vests in the Municipality as a public street or the soil below the surface of which vests in the Municipality or which under the provisions of this Act becomes, or is declared to be a public street;

(62) "Region" means an area declared as such in the State for the purpose of administration of the Municipalities;

(63) "Regional Deputy Director, Local Government" means the officer appointed by the Government to perform the functions of the Regional Deputy Director, Local Government, under this Act;

(64) "regulation" means a regulation made by the Municipal Corporation or the Municipal Council or the Nagar Panchayat, as the case may be, under this Act;

(65) "residential building" means a residential building referred to in clause (a) of sub-section (2) of section 398;

(66) "revenue generated from tax and other sources" in, -

(a) clause (ii) of the proviso of sub-section (1) of section 3;

(b) clause (ii) of the proviso to sub-section (1) of section 8; and

(c) clause (ii) of the proviso to sub-section (1) of section 13, shall not include -

(i) the taxes distributed to the Municipalities under section 177;

(ii) loans and grants from the Government; and

(iii) loans and grants from the Government of India or any other institution or source;

(67) "rule" means a rule made by the Government under this Act;

(68) "Scheduled Caste" means the Scheduled Caste specified in respect of the State of Punjab in the Constitution (Scheduled Caste) Order, 1950, for the time being in force;

(69) "Secretary" means the Secretary of a Municipal Corporation, appointed under section 84;

(70) "section" means a section of this Act;

(71) "Senior Deputy Mayor" means the Senior Deputy Mayor of a Municipal Corporation, elected under section 23;

(72) "Senior Vice-President" means the Senior Vice-President of a Class 'A' or a Class 'B' Municipal Council, as the case may be;

(73) "smaller urban area" means the smaller urban area specified as such under section 9;

(74) "Standing Committee" means, -

(i) the Standing Committee of a Municipal Corporation constituted under Section 20; or

(ii) the Standing Committee of a Class 'A' or Class 'B' Municipal Council constituted under section 37, as the case may be;

(75) "State Election Commission" means the Election Commission established under section 3 of the Punjab State Election Commission Act, 1994 (Punjab Act 19 of 1994);

(76) "street" shall mean any road, footway, square, court, alley, gully or passage, accessible, whether permanently or temporarily to the public, and whether a thoroughfare or not; and shall include every vacant space, notwithstanding that it may be private property and partly or wholly obstructed by any gate, post, chain or other barrier, if houses, shops or other buildings abut thereon, and if it is used by any persons as means of access to or from any public place or thoroughfare, whether such persons be occupiers of such building or not, but shall not include any part of such space which the occupier of any such buildings has right at all hours to prevent all other persons from using as aforesaid, and shall include also the drains or gutters therein, or on either side, and the land, whether covered or not by any pavement, verandah or other erection, upto the boundary of any abutting property not accessible to the public;

(77) "Subject Committee" means the Subject Committee of a Municipal Corporation or a Class A Municipal Council constituted under section 66;

(78) "trade effluent" includes any liquid, gaseous or solid substance which is discharged from any premises used for carrying on any industry, operation or process, or treatment and disposal system other than domestic sewage;

(79) "transitional area" means a transitional area specified as such under section 14;

(80) "utility agency" means any utility agency which provides service of any kind to the public including any department of Government of India or the State Government, any public sector undertaking or private organisation;

(81) "valuation register" means the valuation register maintained under section 186;

(82) "Vice President" means the Vice-President of a Municipal Council or of a Nagar Panchayat, as the case may be;

(83) "ward" means a territorial constituency provided under section 54;

(84) "Wards Committee" means a Wards Committee constituted under section 64; and

(85) "year" means a year commencing on the first day of April of a calendar year and ending on the 31st day of March, of the succeeding calendar year.

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Chapter II - MUNICIPAL AREAS LARGER URBAN AREAS

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In this Act unless the context otherwise requires :-

(1) "Ad hoc Committee" means an Ad hoc Committee constituted by a Municipality under section 67;

(2) "Annual Value" means the value of any land or building fixed in accordance with the provisions of this Act and the regulations made thereunder for the purpose of assessment to property taxes;

(3) "Audit Authority" means the Examiner, Local Fund Accounts, Punjab;

(4) "Backward Classes" means such Backward Classes as the Government may, from time to time, by notification, declare;

(5) "balance sheet" means the balance sheet of the Municipality prepared under section 160;

(6) "budget estimate" means the budget estimate of the Municipality prepared under section 154;

(7) "budget grant" means the total sum entered on the expenditure side of budget estimate under a major head and adopted by the Municipality and includes any sum by which such budget grant may be increased or reduced by transfer from or to other heads in accordance with the provisions of this Act and the rules and regulations made thereunder;

(8) "building" means any shop, house, hut, outhouse, stable, a factory, an industrial shed and a temporary structure erected by means of tents and any other structure including structures raised for entertainment purposes whether roofed or not and whether used for the purposes of human habitation or otherwise and whether of masonry, bricks, wood, mud, thatch, metal or any other material whatever, and includes a wall and a well;

(9) "Chief Officer of a Municipality" or "Chief Officer" means -

(i) in relation to a Municipal Corporation, the Commissioner; and

(ii) in relation to a Municipal Council or a Nagar Panchayat, the Executive Officer;

(10) "City" means a larger urban area deemed to be a City under section 6;

(11) "Class A smaller urban area", "Class B smaller urban area" and "Class C smaller urban area" means a smaller urban area classified as such by the Government under Section 10;

(12) "Commissioner" means the Commissioner of the Municipal Corporation appointed under section 79;

(13) "Councillor" means a member of Municipal Corporation referred to in clause (35);

(14) "Dangerous disease" means-

(i) Cholera, plague, chicken-pox, small-pox, tuberculosis, leprosy, enteric fever, cerebrospinal meningitis, diphtheria, dengue fever, acquired immunodeficiency syndrome (AIDS), hepatitis B and C, cerebral malaria and viral pneumonia; and

(ii) any other epidemic, endemic or infectious disease which the Government may, in relation to any municipal area or group of municipal areas, by notification, declare to be a dangerous disease for the purpose of this Act;

(15) "Debenture" means the debenture referred to in Section 146;

(16) "Deputy Commissioner" means the Deputy Commissioner of the district and includes an Additional Deputy Commissioner or any other person authorised by the Government to perform the functions of the Deputy Commissioner under this Act;

(17) "Deputy Mayor" means the Deputy Mayor of a Municipal Corporation elected under section 23;

(18) "Director" means the officer appointed by the Government to perform the functions of the Director, Local Government, under this Act, and includes an Additional Director, Local Government, a Joint Director, Local Government, or any other officer of the Government authorised by it to perform the functions of the Director, under this Act;

(19) "Divisional Commissioner" means the Commissioner of the Division in which the Municipal Corporation is situated;

(20) "electoral roll" means the electoral roll for the municipal area prepared in accordance with the provisions of the Punjab State Election Commission Act, 1994 (Punjab Act 19 of 1994);

(21) "Establishment Schedule" means the Establishment Schedule of the Municipality prepared under section 154;

(22) "Executive Officer" means the Executive Officer of a Municipal Council or a Nagar Panchayat, as the case may be;

(23) "ex-officio member" means a member referred to in Clause (b) of section 18, or clause (b) of section 35, or clause (b) of section 52, as the case may be;

(24) "Finance Commission" means the Punjab Finance Commission constituted under sub-section (1) of section 3 of the Punjab Finance Commission for Panchayats and Municipalities Act, 1994 (Punjab Act 8 of 1994);

(25) "Financial statement" means the financial statement of the Municipality prepared under section 159;

(26) "Government" means the Government of the State of Punjab;

(27) "Hazardous process" means the hazardous process defined in Clause (cb) of section 2 of the Factories Act, 1948 (Act 63 of 1948);

(28) "highly polluting industry" means such industry as the Government may, having regard to the nature of pollution caused by it, by notification, declare to be a highly polluting industry;

(29) "Industrial Township" means the area specified as such under the first proviso to sub-section (1) of section 17 or under the first proviso to sub-section (1) of section 34 or under the first proviso to sub-section (1) of section 51, as the case may be;

(30) "land" includes benefits to arise out of land, things attached to the earth or permanently fastened to anything attached to the earth and rights created by law over any street;

(31) "Larger urban area" means a larger urban area specified as such under section 5;

(32) "Local Authority" includes a Municipal Corporation, or a Municipal Council or a Nagar Panchayat constituted under this Act, a Gram Panchayat, a Panchayat Samiti and a Zila Parishad constituted as such under the Punjab Panchayati Raj Act, 1994 (Punjab Act 9 of 1994), and a Town Improvement Trust constituted as such under the Punjab Town Improvement Act, 1922 (Punjab Act 4 of 1922), as the case may be;

(33) "market value" means in the case of a land the present value of the land and in the case of a building, the estimated cost of erecting the building as assessed under this Act, and the rules or regulations made thereunder;

(34) "Mayor" means the Mayor of a Municipal Corporation elected under section 23;

(35) "Member" in relation to a Municipal Corporation or a Municipal Council or a Nagar Panchayat means a member thereof and includes elected, ex officio and nominated members;

(36) "misconduct" means violation of the Code of Conduct prescribed by rules;

(37) "multi-storeyed building" means a building consisting of four storeys and above or a building exceeding an height of twelve metres irrespective of the number of its storeys;

(38) "Municipal Accounts Committee" in relation to a Municipal Corporation or a Class 'A' Municipal Council, means the Municipal Accounts Committee constituted under section 167;

(39) "Municipal Area" means the territorial area of a Municipal Corporation, or a Municipal Council or a Nagar Panchayat, as the case may be;

(40) "Municipal Assessment Book" means the Municipal Assessment Book maintained under section 196;

(41) "Municipal Corporation" means a Municipal Corporation constituted under section 17 for a larger urban area and includes the Municipal Corporation duly constituted under the Punjab Municipal Corporation Act, 1976, existing immediately before the commencement of this Act;

(42) "Municipal Council" means a Municipal Council constituted under section 34 for a smaller urban area and includes the Municipal Council duly constituted under the Punjab Municipal Act, 1911, existing immediately before the commencement of this Act;

(43) "Municipal Fund" means the Municipal Fund constituted under section 137;

(44) "Municipal Property Tax Committee" means the Municipal Property Tax Committee constituted under section 187;

(45) "Municipal Services" means the Municipal Services constituted under section 108;

(46) "Municipality" means an institution of self-government and defined as -

(i) a Municipal Corporation in clause (41);

(ii) a Municipal Council in clause (42); and

(iii) a Nagar Panchayat in clause (47);

(47) "Nagar Panchayat" means a Nagar Panchayat constituted under section 51, and includes the Nagar Panchayat duly constituted under the Punjab Municipal Act, 1911 existing immediately before the commencement of this Act;

(48) "Nationalised Bank" means a bank specified in column 2 of the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Act 5 of 1970);

(49) "non-residential building" means any building referred to in clauses (b) to (i) of sub-section (2) of section 398;

(50) "notification" means a notification published in the Official Gazette of the Government;

(51) "Nuisance" includes any act, omission or thing which causes or is likely to cause injury, danger, annoyance or offence to the sense of sight, smell, hearing or which is or may be dangerous to the life or injurious to health or property;

(52) "occupier" includes any person for the time being paying or liable to pay to the owner the rent or fee or contractual payment of adjustment of rent or fee or any portion thereof or damages on account of the occupation of any land or building, and also includes a rent-free tenant:

Provided that an owner living in or otherwise using his own land or building shall be deemed to be the occupier thereof;

(53) "Official Gazette" means the Official Gazette of the State of Punjab;

(54) "owner" includes the person for the time being receiving the rent of any land or building or any part thereof, whether on his own account or as agent or trustee for any person or society or for any religious or charitable purpose, or as a receiver who would receive such rent if the land or building or any part thereof were let to a tenant;

(55) "other employees" means the employees including Clerks, lower in rank to the posts contained in the Municipal Services constituted under section 108;

(56) "population" means the population as ascertained at the last preceding census of which the relevant figures have been published;

(57) "premises" means any land or building or part of a building and includes -

(a) the garden, ground and out-houses, if any, appertaining to a building, or part of building; and

(b) any fitting affixed to a building or part of a building for the more beneficial enjoyment thereof;

(58) "prescribed" means prescribed by rules made under this Act;

(59) "President" means the President of a Municipal Council or of a Nagar Panchayat, as the case may be;

(60) "Proceedings Books" means the Proceedings Book maintained under section 84;

(61) "public street" means any street which vests in the Municipality as a public street or the soil below the surface of which vests in the Municipality or which under the provisions of this Act becomes, or is declared to be a public street;

(62) "Region" means an area declared as such in the State for the purpose of administration of the Municipalities;

(63) "Regional Deputy Director, Local Government" means the officer appointed by the Government to perform the functions of the Regional Deputy Director, Local Government, under this Act;

(64) "regulation" means a regulation made by the Municipal Corporation or the Municipal Council or the Nagar Panchayat, as the case may be, under this Act;

(65) "residential building" means a residential building referred to in clause (a) of sub-section (2) of section 398;

(66) "revenue generated from tax and other sources" in, -

(a) clause (ii) of the proviso of sub-section (1) of section 3;

(b) clause (ii) of the proviso to sub-section (1) of section 8; and

(c) clause (ii) of the proviso to sub-section (1) of section 13, shall not include -

(i) the taxes distributed to the Municipalities under section 177;

(ii) loans and grants from the Government; and

(iii) loans and grants from the Government of India or any other institution or source;

(67) "rule" means a rule made by the Government under this Act;

(68) "Scheduled Caste" means the Scheduled Caste specified in respect of the State of Punjab in the Constitution (Scheduled Caste) Order, 1950, for the time being in force;

(69) "Secretary" means the Secretary of a Municipal Corporation, appointed under section 84;

(70) "section" means a section of this Act;

(71) "Senior Deputy Mayor" means the Senior Deputy Mayor of a Municipal Corporation, elected under section 23;

(72) "Senior Vice-President" means the Senior Vice-President of a Class 'A' or a Class 'B' Municipal Council, as the case may be;

(73) "smaller urban area" means the smaller urban area specified as such under section 9;

(74) "Standing Committee" means, -

(i) the Standing Committee of a Municipal Corporation constituted under Section 20; or

(ii) the Standing Committee of a Class 'A' or Class 'B' Municipal Council constituted under section 37, as the case may be;

(75) "State Election Commission" means the Election Commission established under section 3 of the Punjab State Election Commission Act, 1994 (Punjab Act 19 of 1994);

(76) "street" shall mean any road, footway, square, court, alley, gully or passage, accessible, whether permanently or temporarily to the public, and whether a thoroughfare or not; and shall include every vacant space, notwithstanding that it may be private property and partly or wholly obstructed by any gate, post, chain or other barrier, if houses, shops or other buildings abut thereon, and if it is used by any persons as means of access to or from any public place or thoroughfare, whether such persons be occupiers of such building or not, but shall not include any part of such space which the occupier of any such buildings has right at all hours to prevent all other persons from using as aforesaid, and shall include also the drains or gutters therein, or on either side, and the land, whether covered or not by any pavement, verandah or other erection, upto the boundary of any abutting property not accessible to the public;

(77) "Subject Committee" means the Subject Committee of a Municipal Corporation or a Class A Municipal Council constituted under section 66;

(78) "trade effluent" includes any liquid, gaseous or solid substance which is discharged from any premises used for carrying on any industry, operation or process, or treatment and disposal system other than domestic sewage;

(79) "transitional area" means a transitional area specified as such under section 14;

(80) "utility agency" means any utility agency which provides service of any kind to the public including any department of Government of India or the State Government, any public sector undertaking or private organisation;

(81) "valuation register" means the valuation register maintained under section 186;

(82) "Vice President" means the Vice-President of a Municipal Council or of a Nagar Panchayat, as the case may be;

(83) "ward" means a territorial constituency provided under section 54;

(84) "Wards Committee" means a Wards Committee constituted under section 64; and

(85) "year" means a year commencing on the first day of April of a calendar year and ending on the 31st day of March, of the succeeding calendar year.

Section 3 - Declaration of intention to specify a larger urban area

(1) The Government may, after making such inquiry, as it may deem fit, and having regard to, -

(a) the population of any urban area;

(b) the density of population therein;

(c) the revenue generated for the local administration of such area;

(d) the percentage of employment in non-agricultural activities in such area;

(e) the economic importance of such area; and

(f) such other factors, as may be prescribed;

by notification, declare its intention to specify, such area to be a larger urban area:

Provided that no such declaration shall be made unless, -

(i) the population of such area is three lakhs or more; and

(ii) the revenue generated from tax and other sources exceeds such amount per capita per annum as may be specified by the Government, by notification, from time to time.

(2) A copy of the notification shall be published in at least two leading newspapers of which one shall be in the regional language and a copy of the notification shall also be affixed in a conspicuous place at the office of the Deputy Commissioner and at such other places as the Government may direct.

Section 4 - Submission of Objections

Any inhabitant of the area in respect of which a notification has been published under section 3, may, if he objects to anything contained in the notification, submit his objection in writing to the Government within a period of thirty days from the date of publication of the notification, and the Government shall take into consideration all such objections.

Section 5 - Specification of larger urban area

On the expiry of a period of thirty days from the date of publication of the notification issued under section 3 and after consideration of the objections submitted under section 4, the Government may, by notification, specify such area or part thereof to be a larger urban area :

Provided that any area which has been constituted as a City under the Punjab Municipal Corporation Act, 1976, and existing as such, immediately before the commencement of this Act shall be deemed to have been specified as a larger urban area under this Act.

Section 6 - Larger urban area to be deemed a City

Where any area is specified as a larger urban area, the Government shall, by notification, declare such larger urban area to be a municipal area and thereafter such larger urban area shall be deemed to be a City.

Section 7 - Declaration of intention to include in, or exclude from a, larger urban area, any area or to convert a smaller urban area into a larger urban area and consequences thereof

(1) The Government may, after consultation with the Municipal Corporation or the Municipal Council, as the case may be and subject to the provisions of section 3, by notification, declare its intention, -

(a) to include within a larger urban area, any area adjacent thereto; or

(b) to exclude from a larger urban area, any area comprised therein; or

(c) specify a smaller urban area to be a larger urban area; or

(d) specify a larger urban area to be a smaller urban area.

(2) Every such notification shall define the limits of the area to which it relates.

(3) When a notification is issued under sub-section (1), the provisions of sub-section (2) of section 3 relating to the publication of a copy of notification, and of section 4 relating to the submission of objections, shall apply.

(4) On the expiry of a period of thirty days from the date of publication of the notification referred to in sub-section (1) and after consideration of the objections, which may be submitted, the Government may, by notification, -

(a) include with a larger urban area, any area adjacent thereto; or

(b) exclude from a larger urban area, any area comprised therein; or

(c) specify a smaller urban area to be a larger urban area; or

(d) specify a larger urban area to be a smaller urban area.

(5) Where any area within the territorial jurisdiction of any local authority, other than a Municipal Corporation, is included in a larger urban area, -

(a) the provisions of this Act, and except as the Government may, by notification, otherwise direct, all rules, regulations, notifications, orders, directions and powers, made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such larger urban area, shall apply to, and shall be deemed to have been imposed in, the area so included;

(b) the Government may, by notification, issue such orders as it may deem fit,-

(i) as to the transfer to the Municipal Corporation, or disposal otherwise of, the assets or institutions of such local authority in the area so included; and

(ii) as to the discharge of the liabilities, if any, of such local authority relating to such assets or institutions.

(6) Where any area is excluded from a larger urban area and included within the territorial jurisdiction of any other local authority, -

(a) the provisions of this Act or any rules, regulations, notifications, orders, directions, powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such larger urban area shall cease to apply and shall cease to be imposed in the area so excluded;

(b) the Government may, by notification, issue such orders as it may deem fit, -

(i) as to the transfer to such local authority, or disposal otherwise of, the assets or institutions of the Municipal Corporation of such larger urban area; and

(ii) as to the discharge of the liabilities, if any, of such Municipal Corporation relating to such assets or institutions.

(7) Upon the issue of a notification under sub-section (4), specifying any smaller urban area to be a larger urban area, -

(a) the notification referred to in section 9, insofar as it specifies such smaller urban area, shall stand rescinded and such smaller urban area, shall cease to exist; and

(b) the provisions of this Act as may be applicable to a larger urban area shall, with such modifications as may be specified by the Government, apply in the area so specified :

Provided that the members of the Municipal Council of such smaller urban area shall, subject to the provisions of section 55, be deemed to be the members of the Municipal Corporation of the larger urban area and continue to function as such until the expiry of the duration of the Municipal Council or until a Municipal Corporation is constituted therefor, whichever is earlier.

(8) Upon the issue of a notification under sub-section (4) specifying a larger urban area to be a smaller urban area, -

(a) the notification referred to in section 5, in-so-far as it specifies such larger urban area, shall stand rescinded and such larger urban area, shall cease to exist; and

(b) the provisions of this Act relating to a smaller urban area shall apply in the area so specified :

Provided that the members of the Municipal Corporation of such larger urban area shall, subject to the provisions of section 55, be deemed to be the members of the Municipal Council of the smaller urban area and continue to function as such until the expiry of the duration of the Municipal Corporation or until a Municipal Council is constituted therefor, whichever is earlier.

Section 8 to 12 - SMALLER URBAN AREAS

(1) The Government may, after consultation with the Municipal Corporation or the Municipal Council, as the case may be and subject to the provisions of section 3, by notification, declare its intention, -

(a) to include within a larger urban area, any area adjacent thereto; or

(b) to exclude from a larger urban area, any area comprised therein; or

(c) specify a smaller urban area to be a larger urban area; or

(d) specify a larger urban area to be a smaller urban area.

(2) Every such notification shall define the limits of the area to which it relates.

(3) When a notification is issued under sub-section (1), the provisions of sub-section (2) of section 3 relating to the publication of a copy of notification, and of section 4 relating to the submission of objections, shall apply.

(4) On the expiry of a period of thirty days from the date of publication of the notification referred to in sub-section (1) and after consideration of the objections, which may be submitted, the Government may, by notification, -

(a) include with a larger urban area, any area adjacent thereto; or

(b) exclude from a larger urban area, any area comprised therein; or

(c) specify a smaller urban area to be a larger urban area; or

(d) specify a larger urban area to be a smaller urban area.

(5) Where any area within the territorial jurisdiction of any local authority, other than a Municipal Corporation, is included in a larger urban area, -

(a) the provisions of this Act, and except as the Government may, by notification, otherwise direct, all rules, regulations, notifications, orders, directions and powers, made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such larger urban area, shall apply to, and shall be deemed to have been imposed in, the area so included;

(b) the Government may, by notification, issue such orders as it may deem fit,-

(i) as to the transfer to the Municipal Corporation, or disposal otherwise of, the assets or institutions of such local authority in the area so included; and

(ii) as to the discharge of the liabilities, if any, of such local authority relating to such assets or institutions.

(6) Where any area is excluded from a larger urban area and included within the territorial jurisdiction of any other local authority, -

(a) the provisions of this Act or any rules, regulations, notifications, orders, directions, powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such larger urban area shall cease to apply and shall cease to be imposed in the area so excluded;

(b) the Government may, by notification, issue such orders as it may deem fit, -

(i) as to the transfer to such local authority, or disposal otherwise of, the assets or institutions of the Municipal Corporation of such larger urban area; and

(ii) as to the discharge of the liabilities, if any, of such Municipal Corporation relating to such assets or institutions.

(7) Upon the issue of a notification under sub-section (4), specifying any smaller urban area to be a larger urban area, -

(a) the notification referred to in section 9, insofar as it specifies such smaller urban area, shall stand rescinded and such smaller urban area, shall cease to exist; and

(b) the provisions of this Act as may be applicable to a larger urban area shall, with such modifications as may be specified by the Government, apply in the area so specified :

Provided that the members of the Municipal Council of such smaller urban area shall, subject to the provisions of section 55, be deemed to be the members of the Municipal Corporation of the larger urban area and continue to function as such until the expiry of the duration of the Municipal Council or until a Municipal Corporation is constituted therefor, whichever is earlier.

(8) Upon the issue of a notification under sub-section (4) specifying a larger urban area to be a smaller urban area, -

(a) the notification referred to in section 5, in-so-far as it specifies such larger urban area, shall stand rescinded and such larger urban area, shall cease to exist; and

(b) the provisions of this Act relating to a smaller urban area shall apply in the area so specified :

Provided that the members of the Municipal Corporation of such larger urban area shall, subject to the provisions of section 55, be deemed to be the members of the Municipal Council of the smaller urban area and continue to function as such until the expiry of the duration of the Municipal Corporation or until a Municipal Council is constituted therefor, whichever is earlier.

Section 8 - Declaration of intention to specify a smaller urban area

(1) The Government may, after making such inquiry as it may deem fit, and having regard to the factors mentioned in clauses (a), (b), (c), (d), (e) and (f) of sub-section (1) of section 3, by notification, declare its intention to specify any area to be a smaller urban area:

Provided that no such declaration shall be made unless, -

(i) the population of such area is fifteen thousand or more but is less than three lakhs, and

(ii) the revenue generated from tax and other sources exceeds such amount per capita per annum as may be specified by the Government by notification from time to time.

(2) When a notification is issued under sub-section (1) the provisions of sub-section (2) of section 3 relating to the publication of a copy of the notification, and of section 4 relating to the submission of objections, shall apply.

Section 9 - Specification of smaller urban area

On the expiry of a period of thirty days from the date of publication of the notification and after consideration of the objections submitted, the Government may, by notification, specify such area or part thereof to be a smaller urban area :

Provided that any area specified as smaller urban area under the Punjab Municipal Act, 1911 (Punjab Act 3 of 1911), and existing as such immediately before the commencement of this Act shall be deemed to have been specified as a smaller urban area under this Act.

Section 10 - Classification of smaller urban area

(1) Every smaller urban area shall be classified by the Government, by notification, as a "Class 'A' smaller urban area" or a "Class 'B' smaller than area" or a "Class 'C' smaller urban area" :

Provided that no such classification shall be made unless, -

(a) in the case of a Class 'A' smaller urban area, the population of such area is one lakh or more, but is less than three lakhs;

(b) in the case of Class 'B' smaller urban area, the population of such area is fifty thousand or more, but is less than one lakh; and

(c) in the case of a Class 'C' smaller urban area, the population of such area is fifteen thousand or more, but is less than fifty thousand.

(2) Notwithstanding anything contained in sub-section (1) but subject to the provisions of clause (i) and clause (ii) of the proviso to sub-section (1) of section 8, the Government may, if it thinks it necessary so to do, having regard to the financial viability, and the level of services required to be provided in a Class 'A' smaller urban area or a Class 'B' smaller urban area or a Class 'C smaller urban area, specify, by notification, from time to time, the minimum per capita per annum revenue required to be generated from taxes and other sources in such smaller urban area.

(3) The Government may, having regard to the factors mentioned in clause (a), clause (b) or Clause (c) of the proviso to sub-section (1), or in sub- section (2) after consultation with the Municipal Council concerned, by notification at any time, change the classification.

Section 11 - Notification of Municipal area

Where any urban area is specified to be a smaller urban area under section 9, the Government shall, by notification, declare such smaller urban area to be a municipal area, and a Class 'A' smaller urban area, or a Class 'B' smaller urban area or a Class 'C' smaller urban area shall be declared as a Class 'A' municipal area, or a Class 'B' municipal area, or a Class 'C municipal area, as the case may be :

Provided that an area specified as a smaller urban area under the Punjab Municipal Act, 1911 (Punjab Act 3 of 1911) and a Municipal Council of the first class, or the second class, or the third class, as the case may be, constituted for the area so specified and existing as such immediately before the commencement of this Act, -

(a) shall be deemed to be a Class 'A' smaller urban area, or a Class 'B' smaller urban area, or a Class 'C smaller urban area, as the case may be, classified under this Act; and

(b) the Municipal Council constituted under the Punjab Municipal Act, 1911, for each such smaller urban area shall, be deemed to be the Municipal Council constituted for such area under this Act.

Section 12 - Declaration of intention to include in, or exclude from, a smaller urban area, any area or to specify a smaller urban area as a transitional area or withdraw a smaller urban area from the operation of the Act and consequences thereof

(1) The Government may, after consultation with the Municipal Council and subject to the provisions of section 8 and section 10 by notification declare its intention, -

(a) to include within a smaller urban area, any area adjacent thereto; or

(b) to exclude from a smaller urban area, any area comprised therein; or

(c) to specify a small urban area to be a transitional area; or

(d) to withdraw a smaller urban area altogether from the operation of this Act. (2) Every such notification shall define the limits of the area to which it relates.

(3) When a notification is issued under sub-section (1), the provisions of sub-section (2) of section 3 relating to the publication of a copy of the notification, and of section 4 relating to the submission of objections, shall apply.

(4) On the expiry of a period of thirty days from the date of publication of the notification referred to in sub-section (1) and after consideration of the objections, if any submitted, the Government may, by notification, -

(a) include within a smaller urban area, any area adjacent thereto; or

(b) exclude from a smaller urban area, any area comprised therein; or

(c) specify a smaller urban area to be a transitional area; or

(d) withdraw a smaller urban area altogether from the operation of this Act.

(5) Where any area within the territorial jurisdiction of any local authority, other than a Municipal Council, is constituted as, or included in, a smaller urban area, -

(a) the provisions of this Act, and except as the Government may, by notification, otherwise direct, all rules, regulations, notifications, orders, directions and powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such smaller urban area shall apply to, and shall be deemed to have been imposed in, the area so constituted or included;

(b) the Government may, by notification, issue such orders as it may deem fit,-

(i) as to the transfer to the Municipal Council, or disposal otherwise of, the assets or institutions of such local authority in the area so constituted or included, and

(ii) as to the discharge of the liabilities, if any, of such local authority relating to such assets or institutions.

(6) Where any area is excluded from a smaller urban area and included in the area within the territorial jurisdiction of any other local authority, -

(a) the provisions of this Act or any rules, regulations, notifications, orders, directions and powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such smaller urban area shall cease to apply and shall cease to be imposed in the area so excluded;

(b) the Government may, by notification, issue such orders, as it may deem fit,-

(i) as to the transfer to such local authority, or disposal otherwise of, the assets or institutions of the Municipal Council of the smaller urban area; and

(ii) as to the discharge of the liabilities, if any, of such Municipal Council relating to such assets or institutions.

(7) Upon the issue of a notification under sub-section (4) specifying any smaller urban area to be transitional area, -

(a) the notification referred to in section 9, in so far as it specifies such smaller urban area shall stand rescinded and such smaller urban area shall cease to exist; and

(b) the provisions of this Act relating to transitional area shall apply in the area so specified :

Provided that the members of the Municipal Council of such smaller urban area shall, subject to the provisions of section 55, be deemed to be the members of the Nagar Panchayat of the transitional area and continue to function as such until the expiry of the duration of the Municipal Council or until a Nagar Panchayat is constituted therefor, whichever is earlier.

(8) Upon the issue of a notification under sub-section (4), withdrawing any smaller urban area altogether from the operation of this Act, -

(a) the provisions of this Act and all notifications, rules, regulations, orders, directions and powers issued, made or conferred thereunder, shall cease to apply to such area;

(b) the Municipal Fund and all other property vested in the Municipal Council shall vest in the Government and the liabilities of the Municipal Council shall stand transferred to the Government;

(c) any right, privilege, obligation or liability acquired, accrued to or incurred by the Municipal Council immediately before such withdrawal, shall vest in or be enforceable against the Government:

Provided that any tax, fee or other amount due from any person to the Municipal Council, shall be recoverable by the Government as an arrear of land revenue.

(d) all suits, prosecutions, and other legal proceedings instituted or which might have been instituted by or against the Municipal Council, may be continued or instituted by or against the Government;

(e) the posts of officers and employees of the Municipal Council shall be deemed to have been abolished and consequently the cadre of the Municipal Services constituted under section 108 comprising any such posts, shall be deemed to have been correspondingly reduced :

Provided that the Government shall provide alternative employment in other municipalities to the persons becoming surplus consequent to such abolition or reduction and for that purpose the Government can direct any municipality to appoint a person on a post to which he may be found suitable by the Government.

Section 13 to 16 - TRANSITIONAL AREAS

(1) The Government may, after consultation with the Municipal Council and subject to the provisions of section 8 and section 10 by notification declare its intention, -

(a) to include within a smaller urban area, any area adjacent thereto; or

(b) to exclude from a smaller urban area, any area comprised therein; or

(c) to specify a small urban area to be a transitional area; or

(d) to withdraw a smaller urban area altogether from the operation of this Act. (2) Every such notification shall define the limits of the area to which it relates.

(3) When a notification is issued under sub-section (1), the provisions of sub-section (2) of section 3 relating to the publication of a copy of the notification, and of section 4 relating to the submission of objections, shall apply.

(4) On the expiry of a period of thirty days from the date of publication of the notification referred to in sub-section (1) and after consideration of the objections, if any submitted, the Government may, by notification, -

(a) include within a smaller urban area, any area adjacent thereto; or

(b) exclude from a smaller urban area, any area comprised therein; or

(c) specify a smaller urban area to be a transitional area; or

(d) withdraw a smaller urban area altogether from the operation of this Act.

(5) Where any area within the territorial jurisdiction of any local authority, other than a Municipal Council, is constituted as, or included in, a smaller urban area, -

(a) the provisions of this Act, and except as the Government may, by notification, otherwise direct, all rules, regulations, notifications, orders, directions and powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such smaller urban area shall apply to, and shall be deemed to have been imposed in, the area so constituted or included;

(b) the Government may, by notification, issue such orders as it may deem fit,-

(i) as to the transfer to the Municipal Council, or disposal otherwise of, the assets or institutions of such local authority in the area so constituted or included, and

(ii) as to the discharge of the liabilities, if any, of such local authority relating to such assets or institutions.

(6) Where any area is excluded from a smaller urban area and included in the area within the territorial jurisdiction of any other local authority, -

(a) the provisions of this Act or any rules, regulations, notifications, orders, directions and powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such smaller urban area shall cease to apply and shall cease to be imposed in the area so excluded;

(b) the Government may, by notification, issue such orders, as it may deem fit,-

(i) as to the transfer to such local authority, or disposal otherwise of, the assets or institutions of the Municipal Council of the smaller urban area; and

(ii) as to the discharge of the liabilities, if any, of such Municipal Council relating to such assets or institutions.

(7) Upon the issue of a notification under sub-section (4) specifying any smaller urban area to be transitional area, -

(a) the notification referred to in section 9, in so far as it specifies such smaller urban area shall stand rescinded and such smaller urban area shall cease to exist; and

(b) the provisions of this Act relating to transitional area shall apply in the area so specified :

Provided that the members of the Municipal Council of such smaller urban area shall, subject to the provisions of section 55, be deemed to be the members of the Nagar Panchayat of the transitional area and continue to function as such until the expiry of the duration of the Municipal Council or until a Nagar Panchayat is constituted therefor, whichever is earlier.

(8) Upon the issue of a notification under sub-section (4), withdrawing any smaller urban area altogether from the operation of this Act, -

(a) the provisions of this Act and all notifications, rules, regulations, orders, directions and powers issued, made or conferred thereunder, shall cease to apply to such area;

(b) the Municipal Fund and all other property vested in the Municipal Council shall vest in the Government and the liabilities of the Municipal Council shall stand transferred to the Government;

(c) any right, privilege, obligation or liability acquired, accrued to or incurred by the Municipal Council immediately before such withdrawal, shall vest in or be enforceable against the Government:

Provided that any tax, fee or other amount due from any person to the Municipal Council, shall be recoverable by the Government as an arrear of land revenue.

(d) all suits, prosecutions, and other legal proceedings instituted or which might have been instituted by or against the Municipal Council, may be continued or instituted by or against the Government;

(e) the posts of officers and employees of the Municipal Council shall be deemed to have been abolished and consequently the cadre of the Municipal Services constituted under section 108 comprising any such posts, shall be deemed to have been correspondingly reduced :

Provided that the Government shall provide alternative employment in other municipalities to the persons becoming surplus consequent to such abolition or reduction and for that purpose the Government can direct any municipality to appoint a person on a post to which he may be found suitable by the Government.

Section 13 - Declaration of intention to specify a transitional area

(1) The Government may, after making such inquiry as it may deem fit, and having regard to the factors, mentioned in clauses (a), (b), (c), (d), (d) and (f) of sub-section (1) of section 3, by notification, declare its intention to specify any area to be a transitional area :

Provided that no such declaration shall be made unless, -

(i) the population of such area is five thousand or more but is less than fifteen thousand, and

(ii) the revenue generated from tax and other sources exceeds such amount per capita per annum as may be specified by the Government by notification from time to time.

(2) When a notification, is issued under sub-section (1), the provisions of sub-section (2), of section 3 relating to the publication of a copy of the notification, and of section 4 relating to the submission of objections, shall apply.

Section 14 - Specification of transitional area

(1) On the expiry of a period of thirty days from the date of publication of the notification issued under section 13 and after consideration of the objections submitted, the Government may, by notification, specify such area, to be a transitional area :

Provided that any area which immediately before the commencement of this Act was deemed to have been specified as a transitional area under the Punjab Municipal Act, 1911 (Punjab Act 3 of 1911), shall be deemed to be a transitional area under this Act.

(2) Where any area is specified to be a transitional area under sub- section (1), the Government shall, by notification, declare such transitional area to be a municipal area.

Section 15 - Declaration of intention to include in, or exclude from, a transitional area, any area, or to specify a transitional area as a smaller urban area or withdraw such area from the operation of the Act and consequences thereof

(1) The Government may, after consultation with the Nagar Panchayat and subject to the provisions of section 13, by notification declare its intention, -

(a) to include within a transitional area, any area adjacent thereto; or

(b) to exclude from a transitional area, any area comprised therein; or

(c) to specify a transitional area to be a smaller urban area; or

(d) to withdraw a transitional area altogether from the operation of this Act.

(2) Every such notification shall define the limits of the area to which it relates.

(3) When a notification is issued under sub-section (1), the provisions of sub-section (2) of Section 3 relating to the publication of a copy of the notification, and of section 4 relating to the submission of objections, shall apply.

(4) On the expiry of a period of thirty days from the date of publication of the notification referred to in sub-section (1) and after consideration of the objections submitted, the Government may, be notification, -

(a) include within a transitional area any area adjacent thereto; or

(b) exclude from a transitional area, any area comprised therein; or

(c) specify a transitional area to be a smaller urban area; or

(d) withdraw a transitional area altogether from the operation of this Act.

(5) When any area within the jurisdiction of any local authority is included in a transitional area, -

(a) the provisions of this Act, and except as the Government may, by notification, otherwise direct, all rules, regulations, notifications, orders, directions and powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such transitional area, shall apply to, and shall be deemed to have been imposed in, the area so included;

(b) the Government may, by notification, issue such orders as it may deem fit,-

(i) as to the transfer to the Nagar Panchayat, or disposal otherwise, of assets or institutions of such local authority in the area so constituted or included; and

(ii) as to the discharge of the liabilities, if any, of such local authority relating to such assets or institutions.

(6) When any area is excluded from a transitional area and included within the jurisdiction of any other local authority, -

(a) the provisions of this Act or the rules, regulations, notifications, orders, directions, powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such transitional area shall cease to apply and shall cease to be imposed in the area so excluded;

(b) the Government may, by notification, issue such orders as it may deem fit,-

(i) as to the transfer to such local authority, or disposal otherwise of, the assets or institutions of the Nagar Panchayat of the transitional area; and

(ii) as to the discharge of the liabilities, if any, of such Nagar Panchayat relating to such assets or institutions.

(7) Upon the issue of a notification under sub-section (4), specifying a transitional area as a smaller urban area, -

(a) the notification referred to in s. 14, in so far as it specifies such transitional area, shall stand rescinded and such transitional area shall cease to exist; and

(b) the provisions of this Act as may be applicable to a smaller urban area shall, with such modifications as may be specified by the Government, apply in the area so covered :

Provided that the members of the Nagar Panchayat of such transitional area, shall subject to the provisions of Section 62, be deemed to be the members of the Municipal Council of the smaller urban area and continue to function as such until a Municipal Council is constituted therefor.

(8) Upon the issue of a notification under sub-section (4), withdrawing any transitional area altogether from the operation of this Act, -

(a) the provisions of this Act and all notifications, rules, regulations, orders, directions and powers issued, made or conferred there under shall cease to apply to such area;

(b) the Municipal Fund and all the other property vested in the Nagar Panchayat shall vest in the Government and the liabilities of the Nagar Panchayat, shall stand transferred to the Government;

(c) Any right, privilege, obligation or liabilities acquired, accrued to or incurred by the Nagar Panchayat immediately before such withdrawal shall vest in or be enforceable against the Government:

Provided that any tax, fee or other amount due from any person to the Nagar Panchayat shall be recoverable by the Government as an arrear of land revenue.

(d) all suits, prosecutions and other legal proceedings instituted or which might have been instituted by or against the Nagar Panchayat, may be continued or instituted by or against the Government;

(e) the posts of officers and employees of the Nagar Panchayat shall be deemed to have been abolished and consequently the cadre of the Municipal Services constituted under section 108 comprising any such posts shall be deemed to have been correspondingly reduced :

Provided that the Government shall provide alternative employment in other municipalities to the persons becoming surplus consequent to such abolition or reduction and for that purpose the Government can direct any municipality to appoint a person on a post to which he may be found suitable by the Government.

Chapter III - MUNICIPAL CORPORATIONS FOR LARGER URBAN AREAS

(1) The Government may, after consultation with the Nagar Panchayat and subject to the provisions of section 13, by notification declare its intention, -

(a) to include within a transitional area, any area adjacent thereto; or

(b) to exclude from a transitional area, any area comprised therein; or

(c) to specify a transitional area to be a smaller urban area; or

(d) to withdraw a transitional area altogether from the operation of this Act.

(2) Every such notification shall define the limits of the area to which it relates.

(3) When a notification is issued under sub-section (1), the provisions of sub-section (2) of Section 3 relating to the publication of a copy of the notification, and of section 4 relating to the submission of objections, shall apply.

(4) On the expiry of a period of thirty days from the date of publication of the notification referred to in sub-section (1) and after consideration of the objections submitted, the Government may, be notification, -

(a) include within a transitional area any area adjacent thereto; or

(b) exclude from a transitional area, any area comprised therein; or

(c) specify a transitional area to be a smaller urban area; or

(d) withdraw a transitional area altogether from the operation of this Act.

(5) When any area within the jurisdiction of any local authority is included in a transitional area, -

(a) the provisions of this Act, and except as the Government may, by notification, otherwise direct, all rules, regulations, notifications, orders, directions and powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such transitional area, shall apply to, and shall be deemed to have been imposed in, the area so included;

(b) the Government may, by notification, issue such orders as it may deem fit,-

(i) as to the transfer to the Nagar Panchayat, or disposal otherwise, of assets or institutions of such local authority in the area so constituted or included; and

(ii) as to the discharge of the liabilities, if any, of such local authority relating to such assets or institutions.

(6) When any area is excluded from a transitional area and included within the jurisdiction of any other local authority, -

(a) the provisions of this Act or the rules, regulations, notifications, orders, directions, powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such transitional area shall cease to apply and shall cease to be imposed in the area so excluded;

(b) the Government may, by notification, issue such orders as it may deem fit,-

(i) as to the transfer to such local authority, or disposal otherwise of, the assets or institutions of the Nagar Panchayat of the transitional area; and

(ii) as to the discharge of the liabilities, if any, of such Nagar Panchayat relating to such assets or institutions.

(7) Upon the issue of a notification under sub-section (4), specifying a transitional area as a smaller urban area, -

(a) the notification referred to in s. 14, in so far as it specifies such transitional area, shall stand rescinded and such transitional area shall cease to exist; and

(b) the provisions of this Act as may be applicable to a smaller urban area shall, with such modifications as may be specified by the Government, apply in the area so covered :

Provided that the members of the Nagar Panchayat of such transitional area, shall subject to the provisions of Section 62, be deemed to be the members of the Municipal Council of the smaller urban area and continue to function as such until a Municipal Council is constituted therefor.

(8) Upon the issue of a notification under sub-section (4), withdrawing any transitional area altogether from the operation of this Act, -

(a) the provisions of this Act and all notifications, rules, regulations, orders, directions and powers issued, made or conferred there under shall cease to apply to such area;

(b) the Municipal Fund and all the other property vested in the Nagar Panchayat shall vest in the Government and the liabilities of the Nagar Panchayat, shall stand transferred to the Government;

(c) Any right, privilege, obligation or liabilities acquired, accrued to or incurred by the Nagar Panchayat immediately before such withdrawal shall vest in or be enforceable against the Government:

Provided that any tax, fee or other amount due from any person to the Nagar Panchayat shall be recoverable by the Government as an arrear of land revenue.

(d) all suits, prosecutions and other legal proceedings instituted or which might have been instituted by or against the Nagar Panchayat, may be continued or instituted by or against the Government;

(e) the posts of officers and employees of the Nagar Panchayat shall be deemed to have been abolished and consequently the cadre of the Municipal Services constituted under section 108 comprising any such posts shall be deemed to have been correspondingly reduced :

Provided that the Government shall provide alternative employment in other municipalities to the persons becoming surplus consequent to such abolition or reduction and for that purpose the Government can direct any municipality to appoint a person on a post to which he may be found suitable by the Government.

Section 16 - Municipal authorities of a larger urban area

The municipal authorities for the purposes of giving effect to the provisions of this Act in a larger urban area shall be,-

(a) the Municipal Corporation;

(b) the Standing Committee;

(c) the Mayor; and

(d) the Commissioner.

Section 17 to 19 - MUNICIPAL CORPORATIONS

The municipal authorities for the purposes of giving effect to the provisions of this Act in a larger urban area shall be,-

(a) the Municipal Corporation;

(b) the Standing Committee;

(c) the Mayor; and

(d) the Commissioner.

Section 17 - Constitution of Municipal Corporation

(1) For every larger urban area, there shall be constituted a Municipal Corporation :

Provided that a Municipal Corporation may not be constituted for such area or part thereof as the Government may, having regard to the size of the area and the municipal services being provided by an industrial establishment in that area and such other factors as the Government may think fit and subject to such conditions as the Government any think fit to impose, by notification, specify to be an Industrial Township :

Provided further that if the Government is of the opinion that the industrial establishment providing municipal services in an industrial township has failed to provide satisfactory municipal services or has failed to fulfill the conditions which the Government had imposed while specifying a larger urban area to be that industrial township, the Government may, after giving the concerned industrial establishment an opportunity to show cause, declare by notification that such area has ceased to be an industrial township, and constitute a Municipal Corporation there for.

(2) Every Municipal Corporation shall be a body corporate by the name of "The...........Municipal Corporation" and shall have perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of properties and may by the said name sue and be sued.

Section 18 - Composition of Municipal Corporation

Every Municipal Corporation shall have the following elected, ex officio and nominated members, namely :-

(a) such number of elected members, not being less than fifty and more than one hundred as the Government may, in the case of each Municipal Corporation, by rules, determine :

Provided that the number of elected members of a Municipal Corporation constituted under this Act, shall not be less than the number of elected members of the Municipal Corporation, existing immediately before the commencement of this Act; and

(b) the members of the Legislative Assembly of the State representing constituencies comprising the larger urban area or any part thereof, who shall be ex officio members.

Explanation 1. - If the constituency of a member of the Punjab Legislative Assembly comprises more than one larger urban area, he shall be an ex officio member in respect of the Municipal Corporation of each such larger urban area.

Explanation 2. - If any larger urban area falls in more than more such constituency, the member representing each such constituency shall be the ex officio member of the Municipal Corporation of such larger urban area.

Explanation 3. - A person who is elected as member of a Municipal Corporation shall not be considered to be an ex officio member if he is a member of the Punjab Legislative Assembly at the time of his election or becomes such member at any time thereafter and such person shall have all the rights and be subject to all the liabilities of an elected member; and

(c) Such number of members not exceeding five as may be nominated by the Government, by notification, from amongst the persons having special knowledge or experience in Municipal Administration :

Provided that the nominated members shall not have the right to vote in the meetings of the Municipal Corporation.

Section 19 - Term of office of Councillors of Municipal Corporation

The term of office of the Councillors of a Municipal Corporation shall be coterminous with the duration of the Municipal Corporation.

Section 20 to 22 - STANDING COMMITTEE

The term of office of the Councillors of a Municipal Corporation shall be coterminous with the duration of the Municipal Corporation.

Section 20 - Constitution of Standing Committee of Municipal Corporation

(1) In every Municipal Corporation there shall be a Standing Committee to be constituted by the Municipal Corporation within a period of sixty days from the date of the first meeting referred to in Section 55, consisting of the Mayor, the Senior Deputy Mayor, the Deputy Mayor and six other elected councillors.

(2) The members of the Standing Committee, other than the Mayor, the Senior Deputy Mayor and the Deputy Mayor shall be elected by the councillors of the Municipal Corporation from amongst the elected councillors through the system of proportional representation by means of single transferable vote, in such manner, as may be prescribed.

(3) The Mayor shall be Chairman of the Standing Committee.

(4) The Commissioner shall be the ex officio member of the Standing Committee, but he shall not have a right to vote.

(5) An officer not below the rank of an Executive Officer, appointed by the Government, shall be the Secretary to the Standing Committee.

(6) If the Municipal Corporation fails to constitute the Standing Committee under sub-section (1), within the period of sixty days referred to therein, the Divisional Commissioner shall hold election within thirty days of the expiry of the aforesaid period, to elect six members of the Standing Committee other than the Mayor, the Senior Deputy Mayor and the Deputy Mayor from amongst the elected councillors through the system of proportional representation by means of single transferable vote in such manner, as may be prescribed, and on the elections of these members, the Standing Comittee shall be deemed to have been constituted, as if it has been constituted under sub- section (1).

Section 21 - Term of office of Standing Committee

The term of office of the Standing Committee shall be two and a half years from the date of its constitution and the election of a new Standing Committee shall be held through the system of proportional representation by means of single transferable vote within a period of thirty days from the expiry of the term of the existing Standing Committee failing which the Divisional Commissioner shall hold election within a period of fifteen days to elect six members other than the Mayor, the Senior Deputy Mayor and the Deputy Mayor, from amongst the elected councillors :

Provided that the existing Standing Committee shall continue to function till the assumption of office by the new Standing Committee.

Section 22 - Powers functions and duties, etc. of the Standing Committee

(1) The powers functions and duties of the Standing Committee shall be such as are specified in this Act:

Provided that until the constitution of the Standing Committee after Municipal Corporation is constituted under this Act, the powers, functions and duties of the Standing Committee shall be exercised, performed and discharged by the Municipal Corporation.

(2) All questions coming before the meeting of the Standing Committee shall be determined by a majority of votes of the members present and voting; and in case of equality of votes, the Chairman shall have a right of a second or a casting vote :

Provided that the quorum necessary for the transaction of business at a meeting of the Standing Committee shall not be less than five members other than the Commissioner.

Section 23 to 33 - MAYOR, SENIOR DEPUTY MAYOR, DEPUTY MAYOR

(1) The powers functions and duties of the Standing Committee shall be such as are specified in this Act:

Provided that until the constitution of the Standing Committee after Municipal Corporation is constituted under this Act, the powers, functions and duties of the Standing Committee shall be exercised, performed and discharged by the Municipal Corporation.

(2) All questions coming before the meeting of the Standing Committee shall be determined by a majority of votes of the members present and voting; and in case of equality of votes, the Chairman shall have a right of a second or a casting vote :

Provided that the quorum necessary for the transaction of business at a meeting of the Standing Committee shall not be less than five members other than the Commissioner.

Section 23 - Election of Mayor, Senior Deputy Mayor and Deputy Mayor

(1) Subject to the provisions of section 59, the Municipal Corporation shall, in the prescribed manner, elect one of its elected Councillors to be the Mayor.

(2) The Municipal Corporation shall, in the prescribed manner, also elect two of its elected Councillors to be the Senior Deputy Mayor and the Deputy Mayor :

Provided that the elections of the Senior Deputy Mayor and the Deputy Mayor shall be held separately.

(3) The elections under sub-section (1) and sub-section (2), shall be conducted at a meeting of the Municipal Corporation to be convened immediately after the meeting held for making and subscribing oath or affirmation by the Councillors under section 114, but not later than one month from the date on which election of the Councillors is notified under section 71 of the Punjab State Election Commissioner Act, 1994 (Punjab Act 19 of 1994).

(4) The meeting for the election of the Mayor, the Senior Deputy Mayor and the Deputy Mayor, shall be convened and presided over by the Divisional Commissioner.

(5) If during the election of the Mayor, the Senior Deputy Mayor or the Deputy Mayor, as the case may be, there is an equality of votes between the candidates and the addition of a vote would entitle one of such candidates to be elected as the Mayor, the Senior Deputy Mayor or Deputy Mayor, as the case may be, Divisional Commissioner shall decide between such candidates, by lot, to be drawn in their presence in such manner, as may be prescribed and the candidate on whom the lot falls, shall be deemed to have received an additional vote.

(6) The Mayor, the Senior Deputy Mayor and the Deputy Mayor shall enter upon their duties as such, immediately after their elections.

Section 24 - Term of office of Mayor

The term of office of the Mayor shall be coterminus with the duration of the Municipal Corporation.

Section 25 - Term of office of Senior Deputy Mayor and Deputy Mayor

(1) The term of office of the Senior Deputy Mayor and the Deputy Mayor shall be two and a half years.

(2) The Senior Deputy Mayor or the Deputy Mayor shall, if otherwise qualified, be eligible for re-election also.

(3) The Senior Deputy Mayor or the Deputy Mayor, as the case may be, shall vacate his office if he ceases to be a Councillor.

Section 26 - Resignation of Mayor, Senior Deputy Mayor or Deputy Mayor

(1) The Mayor or the Senior Deputy Mayor or the Deputy Mayor may, at any time, by writing under this hand addressed to the Divisional Commissioner, resign his office.

(2) The resignation shall be delivered to the Divisional Commissioner either personally by the Mayor or the Senior Deputy Mayor or the Deputy Mayor, as the case may be, or by a person duly authorised in writing by the Mayor or the Senior Deputy Mayor or the Deputy Mayor, as the case may be.

(3) A copy of the resignation shall be sent to the Commissioner for placing it before the Municipal Corporation.

(4) The resignation shall take effect on the expiry of a period of fifteen days from the date of delivery of the resignation to the Divisional Commissioner :

Provided that the Mayor or the Senior Deputy Mayor or the Deputy Mayor, may withdraw his resignation within the said period of fifteen days.

Section 27 - Removal of Mayor

(1) A Mayor may be removed from his office by the Municipal Corporation by adopting a motion expressing want of confidence in the Mayor in accordance with the procedure laid down in this section.

(2) Written notice of the intention to move a motion of no-confidence in the Mayor signed by not less than one-half of the total number of Councillors serving at that time excluding the nominated Councillors, alongwith a copy of the motion shall be delivered by any of the two Councillors signing the notice, to the Divisional Commissioner.

(3) On receiving the notice referred to in sub-section (2), the Divisional Commissioner shall convene a meeting of the Municipal Corporation for the consideration of the motion, which shall be held at the office of the Municipal Corporation, on the date and time appointed by the Divisional Commissioner for the purpose, which shall not be later than fourteen days from the date on which the said notice was delivered to him.

(4) The Divisional Commissioner shall send, not less than seven clear days before the date of the meeting, a notice of such meeting and of the date and the time appointed therefor to every Councillor excepting the nominated Councillors at his place of residence and shall at the same time cause such notice to be published in such manner as the Divisional Commissioner may deem fit and, thereupon, every member shall be deemed to have received the notice.

(5) The meeting convened for the aforesaid purpose shall be presided over by the Divisional Commissioner.

(6) The motion shall be deemed to have been carried only when it has been passed by a majority of the total number of councillors, excluding the nominated councillors, and by a majority of not less than two-thirds of the councillors, excluding the nominated councillors, present and voting.

(7) When a motion is carried under sub-section (6), the Mayor shall be deemed to have vacated his office.

(8) When a motion of no-confidence has been carried by the Municipal Corporation, the Divisional Commissioner shall send a report to the Government.

(9) No other business shall be transacted in the meeting convened for considering the no-confidence motion.

(10) A Mayor removed under this section, shall be eligible for re- election.

Section 28 - Suspension of Mayor

The Government may, -

(i) where the Mayor, prima facie appears to be guilty of, -

(a) encroachment or unauthorized occupation of any municipal property or land; or

(b) acting against the financial interests of the municipality; or

(c) an heinous crime or an offence involving moral turpitude and has remained under detention for more than 48 hours; or

(ii) where the continuation in office of the Mayor is prejudicial to public interest, suspend the Mayor:

Provided that the charges on which the Mayor was suspended shall be inquired into expeditiously within a period of one month;

Provided further that the period of suspension of the Mayor shall, in no case, exceed six months.

Section 29 - Removal of Mayor by Government

Notwithstanding anything contained in section 24, the Mayor may be removed from his office by the Government at any time by an order in writing on any of the ground or grounds mentioned in section 28 or on the ground of misuse of his powers or on persistent failure to perform his duties :

Provided that before passing any such order, a reasonable opportunity of being heard shall be given to the Mayor.

Section 30 - Election to fill the vacancy in the office of Mayor

(1) When a Mayor, -

(a) resigns his office under section 26; or

(b) is removed from his office by a motion of no-confidence under section 27; or

(c) is removed from his office by Government under section 29, a fresh election shall be held to fill up the vacancy within a period of fifteen days from the date of occurrence of the vacancy and the Mayor so elected, shall hold office only so long as the Mayor in whose place he is elected, would have held, had the vacancy not occurred :

Provided that if the vacancy so caused is a vacancy in the office of the Mayor reserved for the Scheduled Castes or Backward Classes of or Women under section 59, the person to fill the vacancy shall belong to the Scheduled Castes or Backward Classes or shall be a woman, as the case may be.

(2) A person removed from the office of the Mayor by the Government under section 29 shall not be eligible for re-election as Mayor during the duration of the Municipal Corporation.

(3) The provisions of sub-section (4) and sub-section (5) of section 23, shall apply in the case of such election.

Section 31 - Removal of Senior Deputy Mayor or Deputy Mayor by Municipal Corporation

(1) A Senior Deputy Mayor or a Deputy Mayor may be removed from his office by a resolution of the Municipal Corporation, passed at a special meeting convened for the purpose, by a majority of the total number of councillors excluding the nominated councillors, and by majority of not less than two- third of the councillors, excluding the nominated councillors, present and voting :

Provided that no such resolution shall be moved unless at least fourteen days notice has been given in the prescribed manner of the intention to move the resolution.

(2) The meeting convened for the purpose of removal of Senior Deputy Mayor or Deputy Mayour shall be presided over by the Divisional Commissioner.

(3) When a resolution is passed under sub-section (1), the Senior Deputy Mayor or the Deputy Mayor, as the case may be, shall be deemed to have vacated his office.

(4) A Senior Deputy Mayor or a Deputy Mayor, as the case may be, removed under sub-section (1), shall be eligible for re-election.

Section 32 - Election to fill the vacancy in the office of Senior Deputy Mayor or Deputy Mayor

When a Senior Deputy Mayor or a Deputy Mayor, as the case may be, -

(a) vacates his office under section 25; or

(b) resigns his office under section 26; or

(c) is removed from his office by a resolution by the Municipal Corporation under section 31, a fresh election shall be held to fill up the vacancy within a period of fifteen days from the date of occurrence of the vacancy and the Senior Deputy Mayor or the Deputy Mayor, as the case may be, so elected shall hold office for a period of two and a half years or till the expiry of the duration of Senior Deputy Mayour or Deputy Mayor, in whose place he is elected, whichever is earlier.

(2) The provisions of sub-section (4) and sub-section (5) of section '23 shall apply in the case of such election.

Chapter IV - MUNICIPAL COUNCILS FOR SMALLER URBAN AREAS

When a Senior Deputy Mayor or a Deputy Mayor, as the case may be, -

(a) vacates his office under section 25; or

(b) resigns his office under section 26; or

(c) is removed from his office by a resolution by the Municipal Corporation under section 31, a fresh election shall be held to fill up the vacancy within a period of fifteen days from the date of occurrence of the vacancy and the Senior Deputy Mayor or the Deputy Mayor, as the case may be, so elected shall hold office for a period of two and a half years or till the expiry of the duration of Senior Deputy Mayour or Deputy Mayor, in whose place he is elected, whichever is earlier.

(2) The provisions of sub-section (4) and sub-section (5) of section '23 shall apply in the case of such election.

Section 33 - Municipal authorities of a smaller urban area

The Municipal authorities for the purpose of giving effect to the provisions of this Act in a smaller urban area shall be, -

(a) in the case of a Class 'A' or Class 'B' smaller urban area, -

(i) the Municipal Council;

(ii) the Standing Committee;

(iii) the President; and

(iv) the Executive Officer;

(b) in the case of Class 'C smaller urban area, -

(i) the Municipal Council;

(ii) the President; and

(iii) the Executive Officer.

Section 34 to 39 - MUNICIPAL COUNCILS

The Municipal authorities for the purpose of giving effect to the provisions of this Act in a smaller urban area shall be, -

(a) in the case of a Class 'A' or Class 'B' smaller urban area, -

(i) the Municipal Council;

(ii) the Standing Committee;

(iii) the President; and

(iv) the Executive Officer;

(b) in the case of Class 'C smaller urban area, -

(i) the Municipal Council;

(ii) the President; and

(iii) the Executive Officer.

Section 34 - Constitution of Municipal Council

(1) For every Class 'A', or Class 'B' or Class 'C smaller urban area, there shall be constituted a Municipal Council :

Provided that a Municipal Council may not be constituted for such area or part thereof as the Government may, having regard to the size of the area and the municipal services being provided by an industrial establishment in that area and such other factors as the Government may think fit and subject to such conditions as the Government may think fit to impose, by notification, specify to be an Industrial Township :

Provided further that if the Government is of the opinion that the industrial establishment providing municipal services in an industrial township, has failed to provide satisfactory municipal services or has failed to fulfill the conditions, which the Government had imposed while specifying a smaller urban area to be that industrial township, the Government may, after giving the concerned industrial establishment, an opportunity to show cause, declare by notification that such area has ceased to be an industrial township and constitute a Municipal Council therefor.

(2) Every Municipal Council shall be a body corporate by the name of "The.....Municipal Council" and shall have perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold or dispose of properties, and may by the said name, sue and be sued.

Section 35 - Composition of Municipal Council

Every Municipal Council shall have the following elected, ex-officio and nominated members, namely :-

(a) such number of elected members not being, -

(i) in the case of a Class 'A' Municipal Council, less than twenty and more than fifty;

(ii) in the case of a Class 'B' Municipal Council, less than fifteen and more than thirty; and

(iii) in the case of a Class 'C Municipal Council, less than ten and more then fifteen, as the Government may, by rules, determine":

Provided that the number of elected members of Municipal Council constituted under this Act, shall not be less than the number of elected members of the Municipal Council existing immediately before the commencement of this Act; and

(b) the members of the Legislative Assembly of the State representing constituencies comprising the smaller urban area or any part thereof, who shall be the ex-officio members.

Explanation 1. - If the constituency of a member of the Punjab Legislative Assembly comprises more than one smaller urban area, he shall be an ex-officio member of the Municipal Council of such smaller urban area.

Explanation 2. - If any smaller urban area falls in more than one constituencies, the member representing each of such constituency shall be the ex-officio member of the Municipal Council of such smaller urban area.

Explanation 3. - A person who is elected as member of a Municipal Council, shall not be considered to be an ex-officio member if he is a member of the Punjab Legislative Assembly at the time of his election or becomes such member at any time thereafter and such person shall have all the rights and be subject to all the liabilities of an elected member; and

(c) Such number of members not exceeding three, as may be nominated by the Government, by notification from amongst the persons having special knowledge or experience in Municipal Administration :

Provided that the nominated members shall not have the right to vote in the meetings of the Municipal Council.

Section 36 - Term of office of members of Municipal Council

The term of office of the members of a Municipal Council shall be coterminous with the duration of the Municipal Council.

Section 37 - Constitution of Standing Committee of Municipal Council

(1) In every Class 'A' or Class 'B' Municipal Council, there shall be a Standing Committee to be constituted by the Municipal Council within a period of sixty days from the date of the first meeting referred to in section 55, consisting of, -

(a) in the case of a Class 'A' Municipal Council, the President, the Senior Vice President, the Vice President and four other elected members; and

(b) in the case of a Class "B" Municipal Council, the President, the Senior Vice President, the Vice President and two other elected members.

(2) The members of the Standing Committee, other than the President, the Senior Vice-President and the Vice-President, shall be elected by the members of the Municipal Council from amongst the elected members through the system of proportional representation by means of single transferable vote in such manner as may be prescribed.

(3) The President shall be the Chairman of the Standing Committee.

(4) The Executive Officer shall be the ex-officio Member Secretary of the Standing Committee, but he shall not have a right to vote.

(5) If a Class 'A' Municipal Council or a Class 'B' Municipal Council fails to constitute the Standing Committee under sub-section (1) within the period of sixty days referred to therein, the Deputy Commissioner shall hold election within thirty days of the expiry of the aforesaid period, to elect through the system of proportional representation by means of single transferable vote in such manner as may be prescribed,-

(a) in the case of a Class 'A' Municipal Council, four elected members other than the President, the Senior Vice-President and the Vice- President; and

(b) in the case of Class 'B' Municipal Council, two elected members, other than the President, the Senior Vice-President and the Vice- President, and on the election of these members, the Standing Committee shall be deemed to have been constituted, as if the same has been constituted under sub- section (1).