Chapter – II) Succession of Local Governments #
3. Succession of the defunct local governments. –(1) Each local government shall succeed:
(a) such property of a defunct local government located within the limits of its local area which, in view of the Secretary, is required by it for the due discharge of any function under this Act;
(b) such officers and servants of a defunct local government who, in the view of the Secretary, are required by it for the discharge of any function under this Act; and
(c) such rights, funds, claims or liabilities or portions thereof which, in the view of the Secretary, were respectively raised, made or accrued by a defunct local government in relation to areas comprising its local area.
(2) Subject to subsection (3), the Secretary shall, having regards to the circumstances appertaining to each case, determine the share of a local government where:
(a) any property of a defunct local government is required by two or more local governments for the discharge of a function under this Act;
(b) any officer or servant of a defunct local government is required by two or more local governments for the discharge of a function under this Act; and
(c) any fund, claim or liability or portion thereof which was respectively raised, made or accrued by a defunct local government in relation to areas comprising the local areas of two or more local governments.
(3) No local government shall, unless otherwise provided by the Secretary, succeed to any property, right, fund, claim or liability or portion thereof of a defunct local government which does not pertain to a function assigned to it under this Act:
provided that all properties, rights, funds, claims and liabilities of a defunct local government which pertain to a function not assigned to any local government under this Act shall be succeeded to by the Government.
(4) The Secretary shall, by a general or special order, provide for the manner of succession and discharge of liabilities, if any, of a defunct local government.
(5) The Secretary shall assign all properties, rights, funds, claims or liabilities among local governments under this section and all disputes relating to this matter shall be referred to and decided by it and such decision shall be final.
Explanation: For the purpose of this section, the term “property” shall include any land, building, office, work, facility, amenity, vehicle, equipment, plant, store or apparatus.
| NOTES: | ||||
| PARI MATERIA PROVISIONS | ||||
| PLGA 2013 | PLGA 2019 | PLGO 2021 | PLGA 2022 (Act No. XIII of 2022) | PLGA 2022 (Act No. XXXIII of 2022) |
| s. | s. | s. | s. | s. |
| 3 | 4 | 4 | 3 | 3 |
Comments
Local areas of the local governments i.e. Metropolitan Corporations demarcated under section 7 of the Act and Union Councils delimited by the Election Commission of Pakistan under Sections 10 and 11 of the Act are different from the local areas of the defunct local governments constituted under the Punjab Local Government Act, 2013. The offices of the defunct local governments constituted under the PLGA, 2013 are bound to provide public / municipal services in their respective local areas till the time elected local governments under the Act are established. The newly established local governments pursuant to conduct of elections by the Election Commission of Pakistan under Section 42 of the Act read with Article 140A (2) of the Constitution shall be able to perform functions and exercise powers, respectively, assigned and conferred under the Act only after an effective succession of properties, officers and servants as well as rights, funds, claims or liabilities or portions thereof. A local government is a perpetual succession phenomenon under the Act and the due to changed local areas of the local governments elected under the Act, they, besides utilizing properties and enjoying rights of the defunct local governments, shall also fulfill all contractual obligations and discharge liabilities of the defunct local areas falling within their local areas. The Hon’ble Lahore High Court in the judgment reported as 2006 CLC 1090 in the matter of “Bashir Ahmad and another v.Tehsil Municipal Administration through Tehsil Nazim, Faisalabad and 3 others”, disposed of the issue of outstanding liability of the defunct local government by the successor local government in the following manner:
“3. I have heard the learned counsel for the petitioners and have examined the record, appended herewith. By introduction of District Governments through Punjab Local Government Ordinance, 2001, respondent No.1 has been taken over by Town Municipal Administration and by virtue of section 180 of the Ordinance (ibid) all the properties, assets and liabilities of local councils namely Metropolitan Corporations, Municipal Corporations, District Councils, Municipal Committees etc. were to be succeeded by the bodies nominated therein and by virtue of its clause (a) City District Government was to take over Municipal Corporations in the concerned City Districts, thus, all the liabilities which were to be discharged by respondent No.1 have now to be fulfilled A by the City District Government, Faisalabad. Rights of the petitioners to compensation and their entitlement stand already determined by this Court vide order, dated 3-7-2003, which shall be read as part of this judgment. Respondents had not denied ownership of the petitioners over their Shops Nos.60 and 62 in Faisal Market, Dijkot Road, Faisalabad, which were pulled down and land beneath was included in the expanded area of abutting road, thus, there appears to be no lawful excuse for the respondents in not providing the compensation as in report submitted by respondent No.1. City District Government, Faisalabad, being successor of Municipal Corporation, Faisalabad, is accordingly liable to compensate the petitioners.
4. For the reasons noted above, instant petition is accepted and City District Government, Faisalabad, is directed to allot/allocate alternate land/plots to the petitioners in lieu of their properties utilized for expansion of Dijkot Road, Faisalabad, besides awarding them compensation for the structure pulled down by them. The determination and allocation shall be done by the Nazim concerned, after hearing the petitioners within a period of four months, in accordance with law. Compliance report shall be submitted to Deputy Registrar (Judicial) of this Court. There will be no order as to costs.”
