Chapter IV CONDUCT OF BUSINESS.

Provisions in regard to meetings of municipality and procedure. (1) There shall be held four ordinary general meetings in each year for the disposal of general business, in the months of January, April, July and October, respectively, and such other ordinary general meetings as the president may find necessary. It shall be the duty of the president to fix the dates for all ordinary general meetings. (2) The president may, whenever he thinks fit, and shall, upon the written request of not less than one-third of the councillors in the case of a motion of no confidence against the president or vice-president and one-fourth of the councillors in any other case and on a day not later than fifteen days after the presentation of such request, call a special general meeting. If the president fails to call a special general meeting as provided in this clause, the vice-president shall call such meeting on a day not later than thirty days after the presentation of such request: Provided that where the president and the vice-president fail to call such meeting, the Chief Officer shall make a report thereof to the Collector who shall call the meeting on a day not later than thirty days after the presentation of such report. (3) Seven clear days' notice of an ordinary general meeting, and three clear days' notice of a special general meeting, specifying the time and place at which such meeting is to be held and the business to be transacted thereat shall be served upon the councillors, and posted up at the municipal office or the local kacheri or some other public building in the municipal borough. The said notice shall include any motion or proposition where of a councillor shall have given written notice, not less than ten clear days previous to the meeting of his intention to bring forward thereat, and in the case of a special general meeting any motion or proposition mentioned in any written request made for such meeting. (4) Every meeting of a municipality shall, except for special reasons to be mentioned in the notice convening the meeting, be held in the building used as a municipal office by such municipality. (5) Every meeting shall, in the absence of both the president and vice-president be presided over by such one of the councillors present as may be chosen by the meeting to be chairman for the occasion, and such chairman shall exercise thereat the powers vested in the president by clause (a) of section 45. (6) Every meeting shall be open to the public unless the presiding authority deems any inquiry or deliberation pending before the municipality such as should be held in private: Provided that the said authority may at any time cause any person to be removed who interrupts the proceedings: Provided further that the presiding authority may cause to be removed from the meeting any councillor who does not obey his ruling. (7) If less than one-third of the whole number of councillors be present at a meeting at any time from the beginning to the end thereof, the presiding authority shall after waiting for not more than 30 minutes adjourn the meeting to such hour on the following or some other future day as he may reasonably fix; a notice of such adjournment shall be fixed up in the municipal office, and the business which would have been brought before the original meeting, had there been a quorum thereat, shall be brought before the adjourned meeting and may be disposed of at such meeting or at any subsequent adjournment thereof whether there be a quorum present or not. (8) Except with the permission of the presiding authority which permission shall not be given in the case of a motion or proposition to modify or cancel any resolution within three months after the passing thereof, no business shall be transacted and no proposition shall be discussed at any general meeting unless it has been entered in the notice convening such meeting or, in the case of a special general meeting, in the written request for such meeting. (2) The president may, whenever he thinks fit, and shall, upon the written request of not less than one-third of the councillors in the case of a motion of no confidence against the president or vice-president and one-fourth of the councillors in any other case and on a day not later than fifteen days after the presentation of such request, call a special general meeting. If the president fails to call a special general meeting as provided in this clause, the vice-president shall call such meeting on a day not later than thirty days after the presentation of such request: Provided that where the president and the vice-president fail to call such meeting, the Chief Officer shall make a report thereof to the Collector who shall call the meeting on a day not later than thirty days after the presentation of such report.

(3) Seven clear days' notice of an ordinary general meeting, and three clear days' notice of a special general meeting, specifying the time and place at which such meeting is to be held and the business to be transacted thereat shall be served upon the councillors, and posted up at the municipal office or the local kacheri or some other public building in the municipal borough. The said notice shall include any motion or proposition where of a councillor shall have given written notice, not less than ten clear days previous to the meeting of his intention to bring forward thereat, and in the case of a special general meeting any motion or proposition mentioned in any written request made for such meeting.

(4) Every meeting of a municipality shall, except for special reasons to be mentioned in the notice convening the meeting, be held in the building used as a municipal office by such municipality.

(5) Every meeting shall, in the absence of both the president and vice-president be presided over by such one of the councillors present as may be chosen by the meeting to be chairman for the occasion, and such chairman shall exercise thereat the powers vested in the president by clause (a) of section 45.

(6) Every meeting shall be open to the public unless the presiding authority deems any inquiry or deliberation pending before the municipality such as should be held in private: Provided that the said authority may at any time cause any person to be removed who interrupts the proceedings: Provided further that the presiding authority may cause to be removed from the meeting any councillor who does not obey his ruling.

(7) If less than one-third of the whole number of councillors be present at a meeting at any time from the beginning to the end thereof, the presiding authority shall after waiting for not more than 30 minutes adjourn the meeting to such hour on the following or some other future day as he may reasonably fix; a notice of such adjournment shall be fixed up in the municipal office, and the business which would have been brought before the original meeting, had there been a quorum thereat, shall be brought before the adjourned meeting and may be disposed of at such meeting or at any subsequent adjournment thereof whether there be a quorum present or not.

(8) Except with the permission of the presiding authority which permission shall not be given in the case of a motion or proposition to modify or cancel any resolution within three months after the passing thereof, no business shall be transacted and no proposition shall be discussed at any general meeting unless it has been entered in the notice convening such meeting or, in the case of a special general meeting, in the written request for such meeting. The order in which any business or proposition shall be brought forward at such meeting shall be determined by the presiding authority who in case it is proposed by any member to give priority to any particular item of such business or to any particular proposition, shall put the proposal to the meeting and be guided by the majority of votes given for or against the proposal.

(9) In every municipality there shall be kept in Gujarati minutes of the names of the councillors and of the officers of Government or of a panchayat, if any, present under the provisions of clause (14), and of the proceedings at each general meeting in a book to be provided for this purpose; such minutes shall be signed, as soon as practicable, by the presiding authority and shall at all reasonable times be open to inspection by any inhabitant of the municipal borough. If any councillor expresses a desire at the meeting that the mode in which he voted or the nature of his vote should be recorded, the minutes shall specify the fact accordingly.

(10) Save as otherwise provided by or under this Act, all questions shall be decided by a majority of votes of the councillors present and voting, the presiding authority having a second or casting vote in all cases of equality of votes. Votes shall be taken and result recorded in such manner as may be prescribed by rules in that behalf for the time being in force under clause (a) of section 271.

(11) Any general meeting may, with the consent of a majority of the councillors present, be adjourned from time to time to a later hour on the same day or to any other day; but no business shall be transacted at any adjourned meeting, other than that left undisposed of at the meeting from which the adjournment took place. A notice of such adjournment posted in the Municipal office shall be deemed sufficient notice of the adjourned meeting.

(12) No resolution of a municipality shall be modified or cancelled within three months after the passing thereof, except by a resolution supported by not less than one-half of the whole number of councillors and passed at a general meeting, whereof notice shall have been given fulfilling the requirements of clause (3) and setting forth fully the resolution which it is proposed to modify or cancel at such meeting and the motion or proposition for the modification or cancellation of such resolution.

(13) Except for reasons which the presiding authority deems urgent, no business relating to any work which is being executed for the municipality by a Government executive engineer or to any educational mater shall be transacted at any meeting of a municipality unless, at least fifteen days previous to such meeting a letter has been addressed to the said executive engineer or to the deputy educational inspector of the district, informing him of the intention to transact such business thereat, and of the motions or propositions to be brought forward concerning such business.

(14) (a) The executive engineer, deputy educational inspector and the assistant director of public health, and the civil surgeon in a district or any other Government officer or any officer of a panchayat when charged with any of the duties of a, health officer therein, shall have the right of being present at any meeting of such municipality with the consent of the municipality, each of them may take part at such meeting in the discussion or consideration of any question on which, in virtue of the duties of his office, he considers his opinion or the information which he can supply will be useful to such municipality : Provided that the said officers shall not be entitled to vote upon any such question. (b) If it shall appear to a municipality that the presence of the executive engineer, deputy educational inspector, assistant director of public health or civil surgeon in the district or any other Government officer or any officer of a pachayat is desirable for the purpose aforesaid at any meeting of such municipality, it shall be competent to such municipality, by letter addressed to such officer not less than fifteen days previous to the intended meeting to require his presence thereat; and the said officer unless prevented by sickness; or other reasonable cause, shall be bound to attend such meeting: Provided that such officer on receipt of such letter may, if unable to be present himself, instruct a deputy or assistant or other competent subordinate as to his views, and may sent him to the meeting as his representative instead of appearing thereat in person.

The chief officer shall be present at every meeting of the municipality, and may with the permission of the president or of the municipality make an explanation or a statement of facts in regard to any subject under discussion at such meeting. but shall not to vote upon or make any proposition at such meeting.

(1) In every municipality there shall be a committee called the Executive Committee consisting of such number of councillors not being more than twelve nor less than six, as the municipality may determine and elected by the municipality in accordance with rules framed under clause (a) of section 271. The members so elected shall hold office for a period of one year. (2) The Executive Committee shall exercise the functions allotted to it under this Act and subject to any limitations prescribed by the municipality especially in this behalf or generally by rules made under clause (a) of section 271 and to the provisions of sections 49, 54 and 55 shall exercise all the powers of the municipality.

(1) In every municipality notified by the State Government in this behalf, there shall be a committee called the Pilgrim Committee consisting of four councillors of whom one shall be the President of the municipality and the other three shall be elected in accordance with rules made under clause (a) of section 271 and of two persons appointed by the State Government, both of whom may be salaried servants of the Government. (2) The members of the Pilgrim Committee shall hold office for the duration of the municipality and thereafter up to the date on which the new Pilgrim Committee is constituted in accordance with the provisions of this section. (3) In the case of supersession of the municipality or of the Pilgrim Committee, a new Pilgrim Committee shall be constituted by the Director such Committee shall consist of six persons nominated by the Director and shall continue until the municipality is reestablished, and a new Pilgrim Committee is constituted in accordance with the provisions of this section, or in case of supersession of the Pilgrim Committee, until the Pilgrim Committee is reestablished. (4) The Pilgrim Committee shall manage and administer the Pilgrim fund established under proviso (c) to section 82 and shall exercise the powers and perform the duties of the municipality in respect of the said fund and of works constructed or maintained out of the said fund and shall exercise such other powers and perform such other duties as may be allotted to it by the municipality subject to such limitations and restrictions as may be prescribed by the municipality by rules made in this behalf under clause (b) of section 271. (5) All the provisions of this Act relating to the duties, powers, liabilities, dis-qualifications and disabilities of councillors shall be applicable, so far as may be, to the members nominated on the Pilgrim Committee. (6) In the event of the death, resignation, disqualification, disability or removal of a nominated member previous to the expiry of his term of office, the vacancy shall be filled up by the appointment of a person thereto who hold office so long only as the person in whose place he is appointed would have held it if the vacancy had not occurred. (7) Section 63 shall not apply to the Pilgrim Committee provided that the municipality shall have power at any time, to call for any extract from any proceedings of the Pilgrim Committee and for any return, statement of account or report concerning or connected with any matter with which the Pilgrim Committee deals and every such requisition shall, without unreasonable delay, be complied with by the Pilgrim Committee. (8) The provisions of sections 77, 78 and 79 shall, so far as may be, apply to the Pilgrim Fund Account and the Pilgrim Committee shall, with respect to the preparation and submission to the municipality of its annual budget follow the following procedure, namely:- The Pilgrim Committee shall in sufficient lime submit its annual budget and all alterations there in to the municipality for consideration, and if the municipality agree to it, for its incorporation in the general municipal budget. If the municipality do not agree to the budget as framed by the Pilgrim Committee, they shall return it to the Pilgrim Committee for reconsideration, either in whole or in part, together with any alterations, which they may recommend, and if the Pilgrim Committee agrees to those alterations, the budget so altered shall be incorporated in the general municipal budget. If the municipality and the Pilgrim Committee fail to reach an agreement, the budget with a statement of the points in dispute, shall be referred by the municipality to the Director whose decision on such points shall be final (9) The provisions of sections 257, 258, 259, 262 and 263 shall apply to a Pilgrim Committee and in their application to a Pilgrim Committee, the said sections shall be construed so far as may be, as if for the word " municipality " occurring in the said sections, the words "Pilgrim Committee" were substituted.

(1) Notwithstanding anything contained in sub-section (2) of section 53, other committees consisting of such number of councillors as the municipality may decide, may be appointed to exercise the powers and perform the duties of the municipality in respect of any purpose not being, where a Pilgrim Committee is appointed, powers or duties referred to in section 54. The executive committee shall not exercise any powers or perform any duties which such Committee has been appointed to exercise or perform. (2) The members of such committees shall be elected by the municipality in accordance with the rules framed under clause (a) of section 271 and such members shall hold office for a period of one year.

Consultative Committees. A municipality may from time to time appoint such other committees consisting of such councilors as it thinks fit, and may refer to such committees for enquiry and report or for opinion such special subjects relating to the purposes of this Act as the municipality shall think fit, and may at any time discontinue or alter the constitution of any such Committee. The municipality may direct that the report of any such committee shall be made to the executive committee, or to a committee appointed under section 55 instead of to the municipality.

When person other than Councillors may serve on Committees. Duties, etc., of such persons. Notwithstanding anything contained in this Act, it shall be lawful for a municipality from time to time by a resolution supported by not less than one half of the whole number of councillors, to elect as members of any committee appointed under section 56, any person of either sex, who is not a councillor but who in the opinion of such municipality possesses special qualifications for serving on such committee or who represents any authority or interests : Provided that the number of persons so elected on any Committee shall not exceed one-third of the total number of the members of such Committee. All the provisions of this Act relating to the duties, powers, liabilities, disqualifications and disabilities of councillors shall be applicable so far as may be to such persons.

Casual Vacancies, re-eligibility. A vacancy occurring in an Executive Committee or in a committee appointed under section 55 shall, as soon as possible, and a vacancy occurring in any other committee may, be filled up by the election of a member thereto subject to the same provisions as those under which the member whose place is to be filled up was elected. A person elected under this section shall hold office so long only as the person in whose place he is elected would have held it if the vacancy had not occurred. No person shall be ineligible at any time for election as a member of any such committee on the ground that he has, previously been a member of that committee.

(1) Ex-officio and appointed Chairman. (3) Non-attendance of Chairman. (1) The president or vice-president, if elected a member of any committee, shall be ex-officio chairman thereof: Provided that in the case of a Pilgrim Committee, the President shall be Ex-offico Chairman thereof. (2) A municipality may appoint a Chairman for a Committee of which there is no ex-officio Chairman. (3) A committee of which there is an ex-officio Chairman or a chairman appointed by the municipality, shall, at each meeting which such chairman does not attend, appoint from its members a chairman for such meeting. (4) A committee, of which there is no ex-officio Chairman or a chairman appointed by the municipality, shall appoint from time to time a chairman from the members of such committee.

(1) Procedure at meetings. (2) Meeting and adjournment of committees. (3) Quorum. (1) The provision of clauses (4), (9) and (14) of section 51 shall be complied with in all proceedings of committees as if meetings of committees were included in all references to meetings, of municipality contained in those provisions, and as if for the word "municipality" where it occurs in clause (9) of section 51 and the proviso to sub-clause (c) of clause (14) thereof, there was substituted the word "committee". If the chairman of any committee has been absent from the municipal borough for a period exceeding fifteen days, the president or vice-president may, in his absence, call a meeting thereof. (2) A committee may meet and adjourn as it thinks proper; but the chairman of a committee may whenever he thinks fit, and shall, upon the written request of the president of the municipality or of not less than two members of the committee and for a date not more than two days after the presentation of such request, call a special meeting of such committee. (3) No business shall be transacted at any meeting of a committee unless more than one-third of the members of the committee be present thereat.

(1) Procedure by circular. (2) Propositions when to be sent to Government of Panchayat officers for remarks. (3)Decisions how to be taken on propositions circulated. (4) And how to be recorded. (1) Notwithstanding anything contained in section 60, the chairman of a committee may, instead of convening a meeting, circulate a written proposition (1) Notwithstanding anything contained in section 60, the chairman of a committee may, instead of convening a meeting, circulate a written proposition of his own or of any other member of the committee or of any executive officer of the municipality for the observations and votes of the members of the committee. (2) Previous to circulating any such proposition as aforesaid, the chairman may it he thinks fit, and if the business to which it relates is of the nature described in clause (13) of section 51, shall obtain thereupon the remarks, if any, which any officer of the Government or of a panchayat whose presence the municipality would be entitled to require under the provisions of sub-clause (b) of clause (14) of section 51, desires to record. (3) The decision on any proposition so circulated shall be in accordance with the majority of voles of the members of the committee who vote upon it, unless a special meeting is convened to consider the said proposition on a request being made by not less than two members in respect of the proposition. (4) Every decision arrived at by a committee under this section shall be recorded in the minute book.

Subordination of committees to municipality. (1) A committed shall conform to any instructions that may from time to time be given to it by the municipality; the municipality may at any time call for any extract from any proceedings of any committee and for any return, statement, account or report in connection with any matter with which any committee has been authorized or directed to deal; every such requisition, shall, without unreasonable delay, be complied with by the committee so called upon. (2) Every order passed by an executive committee other than orders under sub-section (3) of section 108, shall be subject to such revision and open to such appeal as may be required or allowed in respect thereof by any rules of the municipality for the time being in force under section 271.

Powers, duties and functions may be delegated to officers whose expenses may be paid. Any powers or duties or executive functions which may be exercised or performed by or on behalf of the municipality may be delegated in accordance with rules to be made by the municipality in this behalf, to the president or to the vice-president or to the chairman of a committee, or to one or more stipendiary or honorary officers, but without prejudice to any powers that may have been conferred on the chief officer by this Act or on any committee by or under section 53, and each person, who exercises any power or performs any duty or function so delegated, may be paid all expenses necessarily incurred by him therein.

(1) A municipality may from time to time- (a) joint with any other municipality, cantonment authority, panchayat or committee appointed for a notified area or with any combination of such municipalities, authorities, panchayats or committees. (i) in appointing out of their respective bodies a joint committee for any purpose in which they are jointly interested, and in appointing a chairman of such committee; and (ii) in delegating to any such committee power to frame terms binding on each such body as to the construction and future maintenance of any joint work, and any power which might be exercised by any of such bodies; and (iii) in framing and modifying rules for regulating the proceedings of any such committee in respect of the purpose for which the committee is appointed; and (b) enter, subject to the sanction of the State Government, into an agreement with a municipality, cantonment authority, panchayat or committee or combination as aforesaid for the levy of tolls whereby tolls leviable by the bodies so contracting may be levied together instead of separately within the limits to the area subject to the control of the said bodies. (c) in order to obtain services of a technical nature join with any other neighbouring municipality or municipalities in appointing the same person in common posts respectively under each of the municipalities on such condition (including conditions as to the service of the persons) as may be agreed upon between the municipalities. (2) Where a municipality has requested the concurrence of any other local body under the provisions of sub-section (1) in respect of any matter and such body has refused to concur, the State Government may pass such orders as it may deem fit, requiring the concurrence of such body, not being a cantonment authority, in the matter aforesaid; and such body shall comply with such orders. (3) If any difference of opinion arises between bodies having joined or entered into an agreement for any purpose under this section, the decision thereupon of the State Government or of such officer as it appoints in this behalf, shall be final: Provided that if one of the bodies concerned is a cantonment authority, any such decision shall be subject to the concurrence of the Central Government.

(1) A municipality shall be competent; subject to the restriction contained in sub-section (2), to lease, sell or otherwise transfer any moveable or immovable property which may, for the purposes of this Act, have become vested in or been acquired by it; and so far as is not inconsistent with the provisions and purposes of this Act, to enter into and perform all such contracts as it may consider necessary or expedient in order to carry into effect the said provisions and purposes. (2) In the case of every lease or sale of land under sub-section (1) of section 146, and of a lease of immovable property for a term exceeding ten years and of every sale or other transfer of such immovable property, the market value of which exceeds Rs. 1,00,000, the previous permission of the State Government is required : Provided that in the case of a lease or sale of land under sub-section (1) of section 146 no such permission shall be granted if such land forms a street or part of a street which has been declared to be a public street under section 148. (3) In the case- (a) of a lease for a period exceeding one year or of a sale or other transfer of immovable property the market value of which does not exceed Rs. 1,00,000 or contract for the purchase of any immovable property ; (b) of every contract which will involve expenditure not covered by a budget grant; (c) 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 municipality by a resolution passed at a general meeting is required. (4) In a municipality- (a) every contract under or for any purpose of this Act shall be made on behalf of the municipality by the chief officer ; (b) no such contract for any purpose which the chief officer is not empowered by this Act to carry out without the approval or sanction of some other municipal authority, shall be made by him until or unless such approval or sanction has first of all been duly given ; (c) no contract which will involve an expenditure exceeding Rs. 1,000 shall be made by the chief officer unless otherwise authorised in this behalf by the municipality except with the approval or sanction of the committee concerned; (d) every contract made by the chief officer involving an expenditure exceeding Rs. 500 and not exceeding Rs. 1,000 shall be reported by him, within fifteen days after the same has been made, to the committee concerned; (e) the foregoing provisions of this section shall apply to every variation or discharge of a contract to the same extent as to an original contract. (5) No contract shall be binding on a municipality unless the requirements of this section have been complied with.

Mode of executing contracts. (1) Every contract entered into by a chief officer on behalf of a municipality 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) where any such contract, if entered into by a chief officer, would require to be under seal, the same shall be sealed with the common seal of the municipality ; (b) every contract for the execution of any work for the supply of any materials or goods which will involve an expenditure exceeding Rs. 1,000, shall be in writing and shall be sealed with the common seal of the municipality and shall specify the work to be done or the materials or goods to be supplied, as the case may be, the price to be paid for such work, materials or goods and in the case of contract for work, the time or times within which the same or specified portions thereof shall be completed. (2) The common seal of the municipality shall not be affixed to any contract or other instrument except in the presence of two councillors, 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 councillors, shall be distinct from the signatures of any witnesses to the execution of any such contract or instrument. (3) A contract not executed in the manner provided in this section shall not be binding on the municipality.

Tenders to be invited for contracts involving expenditure exceeding Rs. 5,000. (1) Except as is otherwise provided in sub-section (3), 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 Rs. 5,000, give notice by advertisement in a newspaper, inviting tenders for such contract: Provided that where the work or supply involves an expenditure exceeding Rs. 20,000, the advertisement shall be published in such one or more daily newspapers as may be approved by the municipality : Provided further that atleast 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. (2) The chief officer shall not be bound to accept any tender which may be made in pursuance of such notice, but may, with the approval of the executive committee, accept any of the tenders so made which appears to him, upon a view of all the circumstances, to be the most advantageous or may for reasons recorded reject all the tenders submitted to him. (3) A municipality may authorise the chief officer, for reasons which shall be recorded in its proceedings, to enter into a contract without inviting tenders as herein provided or without accepting any tenders which he may receive after having invited them. (1) ... thousand rupees, give notice by advertisement in a newspaper, inviting tenders for such contract: Provided that where the work or supply involves an expenditure exceeding Rs. 20,000, the advertisement shall be published in such one or more daily newspapers as may be approved by the municipality : Provided further that atleast 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. (2) The chief officer shall not be bound to accept any tender which may be made in pursuance of such notice, but may, with the approval of the executive committee, accept any of the tenders so made which appears to him, upon a view of all the circumstances, to be the most advantageous or may for reasons recorded reject all the tenders submitted to him. (3) A municipality may authorise the chief officer, for reasons which shall be recorded in its proceedings, to enter into a contract without inviting tenders as herein provided or without accepting any tenders which he may receive after having invited them.

Subject to the rules made by the municipality in this behalf, the chief officer shall require security for the due performance of every contract into which he enters under section 67 and may, in his discretion, require security for the due performance of any other contract into which he enters under this Act.

When there is any hindrance to the permanent or temporary acquisition by a municipality upon payment of any land or building required for the purposes of this Act, the State Government may, after obtaining possession of the same for itself under the Land Acquisition Act, 1894, vest such land or building in the municipality on its paying the compensation awarded and on its repaying to the State Government all costs incurred by the State Government on account of the acquisition.

(1) Every councillor shall be personally liable for the misapplication of any fund to which he shall have been a party, or which shall have happened through or been facilitated by gross neglect of his duty as a councillor: Provided that no councillor shall be personally liable in respect of any contract or agreement made, or for any expense incurred by, or on behalf of the municipality; the funds at the disposal of each municipality shall be liable for, and be charged with, all costs in respect of any contract or agreement and all such expenses. (2) If after giving the councillor concerned a reasonable opportunity for showing cause to the contrary, an officer authorised by the State Government is satisfied that the councillor was party to the misapplication of any fund of the municipality or that the misapplication is a direct consequence of misconduct or gross neglect on his part, the officer so authorised shall by an order in writing direct such councillor to pay to the municipality before a fixed date, the amount required to be reimbursed to it for such misapplication. (3) If the amount is not so paid, it shall be recovered as an arrear of land revenue and credited to the fund of the municipality. (4) Any person aggrieved by the decision or action of the officer so authorised may within one month from the date of such decision or action apply to the District Court for redress of his grievance and that Court after taking such evidence as it thinks necessary may confirm, modify or set aside the order and also make such order as to costs as it thinks proper in the circumstances.

(1) Any person who has directly or indirectly, by himself or his partner, any share or interest in any contract with, by or on behalf of a municipality, or in any employment with, under, by or on behalf of a municipality, other than as a municipal officer or servant, shall be disqualified for being an officer or servant of such municipality. (2) Any municipal officer or servant who shall acquire, directly or indirectly, by himself or his partner, any share or interest in any such contract or employment as aforesaid, shall cease to be a municipal officer or servant, and his office shall become vacant. (3) Nothing in this section shall apply to any such share or interest in any contract or employment with, under, by or on behalf of a municipality, as under clauses (i), (ii) and (iv) of sub-section (3) of section 11, it is permissible for a person to have without his being thereby disqualified from becoming a councillor.

(a) Any councillor who knowingly acquires directly or indirectly any share or interest in any contract or employment with, under, by or on behalf of a municipality of which he is a member, not being a share or interest such, as under section 11, it is permissible for a person to have without being thereby disqualified from becoming a councillor, and (b) any municipal officer or servant who knowingly acquires directly or indirectly any share or interest in any contract, or, except in so far as concerns his own employment with, under, by or on behalf of a municipality of which he is an officer or servant, not being a share or interest such as under clauses (i) and (iv) of sub-section (3) of section 11, it is permissible for a person to have without being thereby disqualified from becoming a councillor shall be liable, on conviction before a criminal court, to a fine which may extend to one thousand rupees.

Councillors etc. to be deemed public servants. (1) Every municipal councillor, officer or servant and every lessee of the levy of any municipal tax, and every servant or other person employed by any such lessee shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code. (2) The word "Government" in the definition of "legal remuneration" in section 161 of that Code shall, for purposes of sub-section (1) of this section, be deemed to include a municipality.

(1) Acts, and proceedings of municipality and committee not vitiated by disqualifications, etc., of members thereof. (2) Proceedings presumed to be good and valid. (1) No disqualification of or defect in the election or appointment of any person acting as councillor or as the President or presiding authority of a general meeting or as a chairman or member of a committee appointed under this Act shall be deemed to vitiate any act or proceeding of the municipality or of any such committee, as the case may be, in which such person has taken part, wherever the majority of persons, parties to such act or proceeding were entitled to act. No resolution of a municipality or of any committee appointed under this Act shall be deemed invalid on account of any irregularity in the service of notice, upon any councillor or member, provided that the proceedings of the municipality or committee, were not prejudicially affected by such irregularity. (2) Until the contrary is proved, every meeting of a municipality or of a committee appointed under this Act in respect of proceedings whereof a minute has been made and signed in accordance with this Act, shall be deemed to have been duly convened and held and all the members of the meeting shall be deemed to have been duly qualified; and where the proceedings are the proceedings of a committee, such Committee shall be deemed to have been duly constituted and to have had the power to deal with the matters referred to in the minute.

Accounts of the receipts and expenditure of every municipality shall be kept in accordance with the Municipal Account Code subject to such modifications as the State Government may in each case direct.

(1) A municipality shall have prepared and laid before it, at its periodical general meetings, complete accounts of the receipts and expenditure of the municipality since the 1st day of April last preceding, and at a general meeting which shall be held on such day between the 10th January and the 15th of March as may be fixed in this behalf by the rules of the municipality a complete account of the actual and expected receipts and expenditure for the financial year ending or the 31st March next following together with a budget estimate of the income and expenditure of the municipality for the financial year to commence on the 1st April next following.

(2) The municipality shall thereupon decide upon the appropriation and the ways and means contained in the budget of the year to commence on the 1st April next following. The budget so sanctioned may be varied or altered from time to time, as circumstances may render desirable, at a special general meeting called for the purpose :

Provided that the executive committee or any other committee appointed under the Act may, within the budget so sanctioned, sanction re-appropriations not exceeding Rs. 5,000 from one sub-head to another or from one minor head to another minor head under the same major head and controlled by the same committee. A statement of such a re-appropriations shall be submitted to the municipality at every quarterly general meeting.

(3) Save as provided in sub-section (2), no sum shall be expended by or on behalf of the municipality unless such sum is included in the budget estimate which has been sanctioned and in force at the time of incurring the expenditure.

(4) The municipality shall at the general meeting in April or after audit of the past year's accounts, if such audit has not before that general meeting taken place pass the accounts of the past year.

(1) Independently of the audit provided for under the provisions of the Gujarat Local Fund Audit Act 1963, the municipal accounts may be audited at intervals and by such agency as may be prescribed in the rules of the municipality.

(2) Notwithstanding anything contained in sub-section (1), the municipal accounts shall be audited at any time, if the State Government so directs.

(3) The auditor shall, for the purposes of his office, have access to all the accounts and other records of the municipality.

(4) Notwithstanding anything contained in the preceding subsections, the State Government shall entrust the Comptroller and Auditor General of India the technical guidance and supervision over the audit of the municipality.

(5) The State Government shall cause the audit report under the Gujarat Local Fund Audit Act, 1963 referred to in sub-section (1) alongwith the report of the Comptroller and Auditor General of India on technical guidance and supervision as referred to in sub-section (4), to be laid before the Stale Legislature.

A municipality shall, as soon as the accounts of the past year have been prepared, transmit to the State Government or any officer duly authorized by it in this behalf, a copy thereof, or an account in such forms as the State Government may prescribe, and shall furnish such details and vouchers relating to the same as the State Government or such officer may from time to time direct.

Publication of accounts. The quarterly and annual accounts, receipts and expenditure, and the budget, when sanctioned, shall be open to public inspection, and shall be published in such manner as the municipality may prescribe in this behalf.