Chapter V MUNICIPAL PROPERTY AND FUND.

Power to acquire and hold property for the purposes of the Act. (1) A municipality may acquire and hold property both moveable and immovable, whether within or without the limits of the municipal borough.

(2) All property of the nature specified in the clauses to this section, not being specially reserved by the State Government, shall be vested in and belong to the municipality, and shall, together with all other property of whatever nature or kind, which may become vested in the municipality, be under its direction, management and control, and shall be held and applied by it as trustee, subject to the provisions and for the purposes of this Act :-

(a) All public town-walls, gates, markets, slaughter-houses manure and night soil depots.

(b) All public streams, tanks, reservoirs, cisterns, wells, springs, acqueducts, conduits, tunnels, pipes, pumps and other water works; and all bridges, buildings, engines, works materials and things connected with or appertaining to such water works ; and also any adjacent land, not being private property, appertaining to any public tank or well.

(c) All public sewers and drains; all sewers, drains, tunnels, culverts, gutters and water-courses in, alongside or under any street and all works, materials and things appertaining thereto; all dust, dirt, dung, ashes, refuse, animal matter, filth or rubbish of any kind collected by the municipality from the streets, houses, privies, sewers, cesspools or elsewhere.

(d) All public lamps, lam-posts and apparatus connected therewith, or appertaining thereto.

(e) All lands and public buildings transferred to it by the Government by gift or otherwise, for local public purposes.

(f) All public streets and the pavements, stones and other materials thereof and also all trees, erections, materials, implements and things provided for such streets:

Provided that lands and public building transferred to the municipality by the State Government under clause(e) shall not, unless otherwise expressly provided in the instrument of transfer, belong by right of ownership to the municipality but shall vest in it subject to the terms and conditions of the transfer, and on the breach of any of the said terms or conditions the lands with all things attached thereto, including all fixtures and structures thereon and the public buildings shall revest in the State Government and it shall be lawful for the State Government to resume possession thereof.

(3) Where any open site or waste, vacant or grazing land vesting in Government has been vested by Government in a municipality whether before or after the commencement of this Act, then it shall be lawful for the State Government to resume at any time such site or land, if it is required by it for any public purpose.

(4) In the event of the resumption of any land, building or site under sub-section (2) or (3) by the State Government otherwise than only for a breach of a condition on which the same was held by the municipality, the municipality shall be entitled to compensation equal to the value of any improvement of such land, building or site by municipality and such value shall be determined in accordance with the provisions of the Land Acquisition Act, 1894.

(1) In any municipal borough to which a survey of lands, other than lands ordinarily used for the purposes of agriculture only, has been or shall be extended under any law for the time being in force, where any property or any right in or over any property is claimed by or on behalf of the municipality, or by any person as against the municipality, it shall be lawful for the Collector after formal enquiry, of which due notice has been given, to pass an order deciding the claim.

(2) Any suit instituted in any civil court after the expiration of one year from the date of any order passed by the Collector under sub-section (1), or, if one or more appeals have been made against such order within the period of limitation, then from the date of any order passed by the final appellate authority, as determined according to section 204 of the Land Revenue Code, shall be dismissed (although limitation has not been set up as a defence) if the suit is brought to set aside such order or if the relief claimed is inconsistent with such order provided that the plaintiff has had due notice of such order,

(3) (a) The powers conferred by this section on a Collector may also be exercised by an Assistant or Deputy Collector or by a Survey Officer as defined in the Land Revenue Code.

(b) The formal enquiry referred to in this section shall be conducted in accordance with the provisions of the aforesaid Code.

(c) Any person shall be deemed to have had due notice of an enquiry or order under this section if notice thereof has been given in accordance with rules made in this behalf by the State Government.

All moneys received by or on behalf of a municipality by virtue of this or any other Act; all taxes, fines and penalties paid to or levied by it under this Act other than fines imposed by any Court; all proceeds of land or other property sold by the municipality, and all rents accruing from its land or property ; and all interest, profits and other moneys accruing by gift or transfer from the Government or private individuals or otherwise, shall constitute the municipal fund, and shall be held and dealt with in a similar manner to the property specified in section 80.

Provided that-

(a) nothing in this section or in section 75 shall in any way affect any obligation accepted by or imposed upon any municipality by any declarations of trust executed by or on behalf of such municipality or by any scheme settled under the Charitable Endowments Act, 1890 or the Bombay Public Trusts Act, 1950, for the administration of any trust or by a trust of the nature specified in clause (b) of this proviso;

(b) subject to the condition that reasonable provision shall be made for the performance of all obligations imposed or that may be imposed on it by or under this Act or any other law for the time being in force, a municipality may, and where so required by the Director, shall, credit to a separate heading in the municipal accounts any portion of the municipal fund received or set apart by it specially for the purposes of schools or dispensaries or water works or fire-brigades or other such purposes as the Director in this behalf approves, and the municipality may apply any sums properly so credited exclusively to the special purposes for which such sums were received or set apart;

(c) (1) every municipality in which a tax on pilgrims resorting periodically to a shrine within its limits is levied shall, subject to the condition that reasonable provision shall be made for the purposes specified in clause (2), credit the proceeds of the said tax to a separate heading in the municipal account, to be called the "Pilgrim Fund Account."

(2) the purposes for which provision shall be made by a municipality before the proceeds of the pilgrim tax are credited to the Pilgrim Fund Accounts shall be the following, namely, the payment to the municipality of such percentage of the proceeds of the said tax as may be determined from time to time by the municipality with the approval of the Director for

(i) making reasonable provision for the performance of all obligations imposed or which may be imposed on it by or under this Act or any other law for the time being in force;

(ii) such general duties of the municipality as are connected with the health, convenience and safety of the said pilgrims; and

(iii) the cost of collection of the said tax.

(3) The sums credited under clause (1), shall be devoted to such works conducive to the health, convenience and safety of the said pilgrims as may be approved by the Director.

The municipal fund and all property vested in a municipality shall be applied for purposes of this Act within the limits of the municipal borough :

Provided always that it shall be lawful for the municipality with the sanction of the State Government or any officer duly authorised by it in this behalf,-

(a) to incur expenditure in the acquisition of land or in the construction, maintenance, repair or purchase of works beyond the said limits for the purpose of obtaining a supply of water required for the inhabitants of the municipal borough or of providing the supply of electrical energy for the use of the inhabitants of the said borough, or of establishing slaughter houses or places for the disposal of night soil or sewage or carcasses of animals or for drainage works or for the purpose of providing mechanically propelled transport facilities for the conveyance of the public or for the purpose of setting up of dairies or farms for the supply, distribution and processing of milk or milk products for the benefit of the inhabitants of the municipal borough or for any other purpose calculated to promote the health, safety or convenience of the inhabitants of the said borough; or

(b) to make a contribution towards expenditure incurred by any other local authority or out of any public funds for measures affecting the health, instruction, safety or convenience of the public and calculated to benefit the residents within the limits of the contributing municipality: or

(c) to create scholarships tenable outside the limits of the municipal borough:

Provided further, that nothing in this section or in any other provision of this Act shall be deemed to make it unlawful for a municipality when with such sanction as aforesaid it has constructed works beyond the limits of the municipal borough for the supply of water or electrical energy or for drainage as aforesaid-

(a) to supply or extend to or for the benefit of any person or buildings or lands in any place whether such place is or is not within the limits of the said borough, any quantity of water or electrical energy not required for the purposes of this Act within the said borough, or the advantages afforded by the system of drainage works, on such terms and conditions with regard to payment and to the continuance of such supply or advantages as shall be settled by agreement between the municipality and such person or the occupier or owner of such buildings or lands: or

(b) to incur any expenditure, on such terms with regard to payment as may be settled as aforesaid, for the construction, maintenance, repairs or alteration of any connection pipes or any electric supply lines or other works necessary for the purposes of such supply or for the extension of such advantages. (c) to create scholarships tenable outside the limits of the municipal borough: Provided further, that nothing in this section or in any other provision of this Act shall be deemed to make it unlawful for a municipality when with such sanction as aforesaid it has constructed works beyond the limits of the municipal borough for the supply of water or electrical energy or for drainage as aforesaid- (a) to supply or extend to or for the benefit of any person or buildings or lands in any place whether such place is or is not within the limits of the said borough, any quantity of water or electrical energy not required for the purposes of this Act within the said borough, or the advantages afforded by the system of drainage works, on such terms and conditions with regard to payment and to the continuance of such supply or advantages as shall be settled by agreement between the municipality and such person or the occupier or owner of such buildings or lands: or (b) to incur any expenditure, on such terms with regard to payment as may be settled as aforesaid, for the construction, maintenance, repairs or alteration of any connection pipes or any electric supply lines or other works necessary for the purposes of such supply or for the extension of such advantages.

Power of municipality to extend service to persons or properties outside its limits when authorised by Government. (1) Notwithstanding anything contained in section 83 or any other provision of this Act, the State Government may, by general or special order authorise any municipality to, and thereupon such municipality may, extend to persons or properties beyond the municipal borough any service provided by the municipality within the said borough and specified in the order.

(2) No such extension shall be effected unless the municipality is satisfied that it will not render the service within the borough inadequte, and the extension shall be on such terms and conditions as shall be prescribed by bye-laws made in this behalf.

(3) A municipality may with the previous sanction of the State Government incur expenditure on education or medical relief outside its jurisdiction if its finances permit.

(1) If for the purpose of taking immediate steps for protecting life and property in any area affected by an outbreak of fire, or epidemic disease or any other natural calamity, the Collector or the Mamlatdar is satisfied that it is necessary to requisition any service, equipment or staff provided or maintained by any municipality within the municipal borough, the Collector or, as the case may be, the Mamlatdar may by order in writing direct the municipality to supply to the area such service, equipment and staff for such purpose and for such period as may be specified in the order and the municipality shall be bound to comply with the direction. (2) Where any direction is issued to a municipality under sub-section (1), the municipality shall subject to the provisions of sub-section (3) be entitled to the cost of supplying the service, equipment and staff in pursuance of the direction. (3) (a) The sum payable to the municipality under sub-section (2) by way of cost shall be determined by the officer making requisition under sub-section (1). (b) If the area to which the service, equipment and staff are so supplied, is within the local limits of any municipality, gram panchayat or nagarpanchayat, such municipality, gram panchayat or, as the case may be, nagarpanchayat shall be liable to pay to the municipality the sum determined under clause (a) and shall pay the same to the municipality within such period as the Officer determining the sum directs. In any other case, the sum determined under clause (a) shall be paid to the municipality by the State Government. (4) If any area beyond the municipal borough is affected by an outbreak of fire or epidemic disease or any other natural calamity and the municipality is satisfied that for protecting life and property in that area it is necessary to take immediate steps to supply to the area any of its services, equipment and staff then whether a requisition under sub-section (1) has been made or not, it shall be lawful for the municipality to supply to the area free of cost such service, equipment and staff as it may deem fit.

Deposit of funds and investment of surplus funds. (1) Subject to the provisions of sub-sections (2) and (3), all moneys constituting municipal fund received by or on behalf of a municipality shall be deposited in the Government treasury or such other place or security as may be prescribed by the rules of the municipality. (2) A municipality may keep on hand cash upto such limit as may be prescribed by the rules of the municipality. (3) It shall be lawful for a municipality to deposit with the State Bank of India or such other Bank as may hereafter be appointed to conduct the business of Government treasury at Ahmedabad or in any other Scheduled Bank or in any Co-operative Bank or with the sanction of the State Government in any bank in the State of Gujarat, any surplus funds in its hands which may not be required for current charges, and to invest such funds in public securities in the name of the municipality and from time to time, to dispose of such securities as may be necessary. Explanation.-For the purposes of this sub-section, a Scheduled Bank shall mean a bank included in the Second Schedule to the Reserve Bank of India Act. 1934.