Provisions relating to contracts and tenders.

The Daman and Diu Municipalities Regulation 1994

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Statutory text

(1) In the case-(a) of every contract which will involve expenditure not covered by a budget grant, (b) of every contract the performance of which cannot be completed within the official year current at the date of the contract, - the sanction of the Council by a resolution pass@ at an ordinary meeting shall be necessary. (2)(a) Every contract under or for any purpose of this Regulation shall be made on behalf of the council by the Chief Officer; (b) No such contract which the Chief Officer is not empowered by this fiegulation to harry out without the approval or sanction of some other muncipal authority shall be made by him until or unless such approve1 or sanction has first of all been duly given; (c) No contract which will involve an expenditure exceeding Rs. 1586, shall be made by the Chief Officer unless otherwise authorised in this behalf by the Council, except with the approval or sanction of the Council; (d) Every contract made by the Chief Officer involving an expenditure exceeding 75 per cent of thi limit in clause (c) but not exceeding that limit shall be reported by him within fifteen days after the same has been made to the Council. (e) The foregoing provisipns of this section shall apply to every variation or discharge of a contract to the same extent as to an original contract.
(3) Every contract entered into 'by a Chief Officer on bqhalf of a Council shall be-entered into in such manner and form as would bind such Chief Officer if such contract were on his own behalf, and may in the like manner and form be varied or discharged: Provided that-(a) wherP any such conqract, if entered into by a chief Officer, would require to be under seal, the same shall be sealed with the common seal of the Council; (b) every contract for the execution of any work or for the supply or any material or goods which will involve an expenditure exceeding five hundred rupees shall be in writing and shall be sealed with the common seal of the Council and shall specify the work to be done or the materiala or goods to be supplied, as the case may be, the price to be paid for such work, materials or goods and in the ease of a contract for work, the time or times within which the same or specified portions thereof shall, be completed.
(4) The common seal of the Council shall not be affixed to any contract or other instrument except in the presence of two members of the Standing Committee who shall attach their signatures to the contract or instrument in token that the same was sealed in their presence. The signature of the said members shail be distinct from the signatures of any witnesses to the execution of any such contract or instrument.
(5) A contract not exkCuted in the manner provided in this section shall not be binding on the Council.
(6) Except as is otherwise providea in sub-section (2), a Chief officer shall before 'entering into any contract for the execution of any work or the supply of any materials or goods which will involve an expenditure exceeding one thousand rupees give notice by advertisement in a local newspaper, inviting tenders for such contract: Provided that at least clear seven days shall be allowed to elapse between the date of the publication of the advertisement in the newspaper inviting tenders and the last date fixed for the receipt of tenders by the Chief Officer.
(7) The Chief officer shall not be bound to accept any tender which may be made in pursuance of such natice, but may, with the approval of the Council, accept any of the tenders so made which appears to him, upon a yiew of all the ciycumstances, to be the most advantageous or may reject all the tenders kubmitted to him.
(8) A Council, after obtaining the approval of the Collector, may authorise the Chief Officer, for reasons which shall be recorded in its prgceedings, to enter into a contract without inviting tenders as herein provided or Without accepting any tenders which he may receive aftei, having infited them.
(9) A Chief Officer bhaill require' security for the due performance of 'every contract into which he enters under sub-secti~n (6) and may, in his discretion, require secprlgy for the due performance of any other contract info which he enters under this Regulation,

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