ORDER : SANJAY YADAV, J. 1. With consent of learned counsel for the parties, the matter is finally heard. 2. Petitioner, a Nagar Parishad, constituted under the provisions of the M.P. Municipalities Act 1961 (for short 1961 Act) being aggrieved by the action of respondent No. 1 in notifying the auction of 13 shops, has filed this petition. 3. It is contended that the petitioner Parishad came into existence by virtue of Gazette Notification dated 12.8.2011 by the State Government under the provisions of Section 5(1)(b) of 1961 Act comprising entire area of Gram Panchayat, Saikheda and Gram Panchayat Bamhori Khurd. That the Parishad came to be constituted with the Election held in December 2014, consisting of a President and 15 members. It is contended that after the notification dated 12.8.2011 and the Parishad being constituted, entire assets and liabilities of respective Gram Panchayats vested with the Parishad. It is urged that ignoring this aspect Gram Sabha Saikheda passed a resolution on 2.10.2011 of taking into possession 13 shops newly constructed over Khasra Nos. 456,457 and 458, total area ad-measuring 6.770 hectares and took recourse to auction the same on lease. It is urged that as entire assets vested with the Nagar Parishad a resolution was passed by it on 21.1.2016 that Janpad Panchayat has no authority in law to auction the shops as they do not fall within their jurisdiction, territorial and administrative. Since the Collector, Narsingpur had failed to take steps to stop auction, petitioner has filed this petition. 4. That while issuing notice on 1.2.2016 the effect of Notice Inviting Tender was stayed. 5. Respondents on being served, have filed return. 6. Respondent No. 2 has chosen to adopt the return filed by Janpad Panchayat Saikheda. It is stated that on 4.5.2009 when Parishad was not in existence, Collector Narsingpur granted permission for construction of a shopping complex over the land in question from the fund of Janpad Panchayat. The construction was to be through the agency of Rural Engineering Service. That a resolution to that effect was passed on 11.6.2009. That Collector granted approval for handing over possession of land in question on 25.6.2011. The construction work was completed on 28.9.2011 and the completion certificate was issued. That having been transferred the land in question, Respondent Panchayat had bear the expenses towards diversion and lease rent. That a resolution to that effect was passed on 11.6.2009. That Collector granted approval for handing over possession of land in question on 25.6.2011. The construction work was completed on 28.9.2011 and the completion certificate was issued. That having been transferred the land in question, Respondent Panchayat had bear the expenses towards diversion and lease rent. Taking shelter of clause (d) of Section 7 of 1961 Act, it is urged that the right accrued in favour of Janpad stood protected. For these reasons, respondent No. 1 justified their action. 7. Considered the rival contention. 8. The issue which crops up for consideration is whether it will be lawful for the Janpad Panchayat to claim right, title and interest over the property in question after the constitution of Nagar Parishad and vesting of the assets with it by operation of law. And, whether by virtue of Clause (d) of Section 5(1) of 1961 Act, the right, title and interest of the Janpad Panchayat is protected. 9. Section 5(1)(b) of the 1961 Act mandates that there shall be constituted a Nagar Parishad for a transitional area, that is to say, an area in transition from a rural area to an urban area. Second proviso to sub section (1) of Section 5 provides that when an area is notified to be a transitional area, the Gram Panchayat having jurisdiction over such area shall continue to function until a duly elected Nagar Parishad is constituted under 1961 Act. 10. Furthermore, sub section (3) of Section 1 of 1961 Act extends the applicability of the said Act to the smaller urban area or a transitional area, as the case may be, from the date on which they are notified as such under Section 5. 11. Section 7 of the 1961 Act envisages the effect of establishing Municipality for local area which causes to be Town Area or Panchayat. The consequences which ensues, which we are presently concern with, i.e, clause (b) and (k) are that: "(b) there shall be constituted a committee in accordance with the provision of Section 15 to exercise the powers of the Council pending its constitution; .. The consequences which ensues, which we are presently concern with, i.e, clause (b) and (k) are that: "(b) there shall be constituted a committee in accordance with the provision of Section 15 to exercise the powers of the Council pending its constitution; .. (k) on the application of this Act to any area under sub-section (3) of Section 1, the authority or any institution if performing the municipal functions shall cease to perform such functions and all assets and liabilities of such authority or institution shall vest in the Municipal Council or Nagar Panchayat, as the case may be, constituted under this Act; 12. Though Section 15 has been omitted by M.P.Act 17 of 1994 w.e.f, 30/5/1994 as would carry forward clause (b); however, clause "k" (above) which is inserted by M.P.Act 18 of 1997 w.e.f, 21/4/1997 stipulates in clear terms that on the application of the 1961 Act to any area under sub section (3) of Section 1 the Authority or any institution, which includes Panchayat as it performs Municipal functions, i.e, it deals with the affairs relating to local governance of the inhabitants of a Panchayat areas, ceases to perform such functions. Besides, ceasing of Municipal functions, even the assets and liabilities of such institution vests in the Nagar Parishad constituted under the Act of 1961. 13. In the case at hand, with the notification under Section 5(1)(b) on 12.8.2011, constitution of Nagar Parishad Saikheda, comprising entire area of Gram Panchayat Saikheda and Gram Panchayat, Bamhori Khurd not only their (i.e. Panchayati) administrative functions ceased to exist but also the assets and liabilities vested with the Nagar Parishad. With the vesting of the assets in Nagar Parishad, the necessary corollary which falls is that the institution having right, title and even the interest in such assets is diverted thereof. 14. With the vesting of the assets in Nagar Parishad, the necessary corollary which falls is that the institution having right, title and even the interest in such assets is diverted thereof. 14. Though the respondents have taken shelter of the stipulation contained in clause (d) of Section 7 which provides for : (d) any appointment, notification, notice, tax, order, scheme licences, permission, rule, bye-law or form made, issued imposed or granted under the Bhopal State Town area Act, 1954 (XIV of 1954), or the Panchayat law before the specified date in respect of such local area shall so far as it is not inconsistent with the provisions of this Act continue, to be in force and be deemed to have been made, issued imposed or granted in respect of the Municipality until it is superseded or modified by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted under this Act; 15. The expression "so far as it is not inconsistent with the provisions of this Act", makes it ample clear that with the constitution of Nagar Parishad Saikheda, Clause (k) of Section 7 instantly comes into effect because of sub Section (3) of Section 1 of 1961 Act. The expression takes away the effect of clause (d) when read with clause (k) which will have the over riding effect. A reference can be had of the decision in Satya Narayan Sharma v. State of Rajasthan AIR 2001 SC 2856 wherein it is observed that expression like 'notwithstanding anything contained in the Act' is construed to take away the effect of any provision of the Act in which the provision appear. What is true of the expression 'notwithstanding any thing contained in this Act' is equally true for the expression 'So far as it is not inconsistent with the provision of this Act'. 16. In view of above analysis, with the vesting of assets in Nagar Parishad constituted vide notification dated 12.8.2011, Gram Panchayat or the Janpad Panchayat as the case may be is divested of Municipal functions and assets and liabilities of Gram/Janpad Panchayat Saikheda. The impugned action by Janpad/Gram Panchayat Saikheda of auctioning 13 shops is contrary to the statute, therefore cannot be approved of. Accordingly, quashed. 17. The impugned action by Janpad/Gram Panchayat Saikheda of auctioning 13 shops is contrary to the statute, therefore cannot be approved of. Accordingly, quashed. 17. Petitioner being the owner of the property in question are at liberty to deal with the same in larger public interest and in the interest of revenue. 18. Petition is allowed to the extent above. No costs.