As from the date of the establishment of the Council, the Punjab Municipal Act,1911,(Punjab Act 3 of 1911) as applicable to New Delhi, shall cease to have effect within New Delhi.

Notwithstanding the provisions of sub-section (1) of this section,-

any appointment, notificaton, order, scheme, rule, form, notice or bye-law or issued, and any licence or permission granted under the Act referred to in sub-section (1) of this section and in force immediately before the establishment of the Council, shall, inso far as it is not inconsistent with the provisions of this Act continue in force and be deemed to have been made, issued or granted, under the provisions of this Act, unless and until it is superseded by any appointment, notification, order, scheme, rule, form notice or bye-law made or issued or any licence or permission granted under the said provisions;