Application of Municipal Fund

Application of Municipal Fund

1. (1) The moneys credited to the Municipal Fund shall be applied in payment of the following charges and expenses, namely:—
   • (a) the salaries and allowances of the Commissioner and other officers and servants of the Corporation and any contributions to provident funds, pension or gratuity which may become due under the rules for the time being in force;
   • (b) such expenses as may be incurred by the Corporation in the carrying out of the provisions of this Act;
   • (c) the interest and sinking fund charges on any loans raised by the Corporation;
   • (d) the payment of any sums falling due on any loan legally contracted by the Corporation;
   • (e) the payment of costs of audit of the Municipal Fund;
   • (f) the payment of any sum the payment of which is required by this Act or by any other law for the time being in force or which may have been passed by the Corporation and approved by the Government;
   • (g) such contributions to public institutions as may be approved by the Corporation.
2. (2) No payment of any sum out of the Municipal Fund shall be made unless the expenditure of the same is covered by a current budget grant and a sufficient balance of such budget grant is still available notwithstanding any reduction or transfer thereof which may have been made under the provisions of this Act: Provided that this sub-section shall not apply to payments in the following cases, namely:—
   • (i) refund of taxes and other moneys which the Corporation is authorised to make under this Act;
   • (ii) repayment of moneys belonging to contractors or other persons held in deposit and of moneys collected or credited to the Municipal Fund by mistake;
   • (iii) sums payable in any of the following circumstances:—
   • (a) under orders of the Government on failure of the Corporation to take any action required by this Act;
   • (b) under any other enactment for the time being in force;
   • (c) under a decree or order of a civil court;
   • (d) under any compromise of any claim, suit or other legal proceeding;
   • (e) on account of costs incurred in taking immediate action by the Commissioner or any other officer empowered in this behalf to avert a sudden emergency.