7.(1) When, by a notification under section 4, any local area forming part of a cantonment ceases to be under the control of a particular Board and is immediately placed under the control of some other local authority, such portion of the cantonment fund and other property vesting in the Board and such portion of the liabilities of the Board, as the Government may, by general or special order, direct, shall be transferred to that other local authority. (2) When, in like manner, any local area forming part of a cantonment cases to be under the control of a particular Board and is not immediately placed under the control of some other local authority, such portion of the cantonment fund and other property vesting in the Board shall vest in Government, and such portion of the liabilities of the Board shall be transferred to the Government, as the Government may, by general or special order, direct.