Power to institute, defend suits, etc.

(1) Subject to the general control of the Council, the Chief Officer may — (a) institute and prosecute any suit or other proceeding for any claim or demand on behalf of the Council or for any injury to any property, rights or privileges of the Council; (b) withdraw from or compromise or compound any suit or any claim or demand which has been instituted or made on behalf of the council; (c) institute, withdraw from or compromise or compound any suit or proceeding for the recovery of expenses or compensation claimed to be due to the Council; (d) defend, admit or compromise or compound any appeal against a rateable value or tax; (e) defend any suit or other legal proceedings brought against the Council or any municipal officer or servant in respect of anything done or omitted to be done by them, respectively in their official capacity; (f) admit or compromise any claim, suit or legal proceeding brought against the Council or any municipal officer or servant, in respect of anything done or omitted to be done as aforesaid: Provided that — (i) if any sanction in the making of any contract is required by this Act, the like sanction shall be obtained for compounding or compromising any claim or demand arising out of such contract; (ii) if any such suit is in respect of land leased or sold under sub-section (3) of section 168 or in respect of any immovable property sold or leased for a term exceeding three years or other-wise transferred, it shall not be lawful for the Council to compound or compromise in respect of the suit except with the previous sanction of the Director. (2) A Council may make compensation out of the municipal fund to any person sustaining any damage by reason of the exercise of any of the powers vested in it, its committees, officers or servants under this Act. (3) The expenses of any civil proceedings prosecuted or defended on behalf of the Council shall be payable from the municipal fund.