Penalty for councillor, officer or servant of a municipality being interested in contract, etc., with that municipality.

(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.