Chapter XVI CONTROL

(1) The Deputy Commissioner or any Officer authorised in writing by him or any person empowered by the State Government in this behalf by a general or special order, may - (a) enter on, inspect and survey, or cause to be entered on, inspected and surveyed, any immoveable property occupied by any municipality or any work in progress under its direction ; (b) by order in writing addressed to the Executive Officer/ Secretary call for and inspect or cause to be inspected any book or document in the possession or under the control of any municipality and the member or the employee of the municipality in possession of such book or document shall immediately place such book or document shall immediately place such book or document at the disposal of the Executive Officer/ Secretary, who shall immediately comply with such order and shall immediately inform the President of the requisition. He shall also bring the matter to the notice of the municipality at its meeting next following; (c) by order in writing addressed to the Executive Officer/ Secretary require any such municipality to furnish within a specified period such statements, accounts, reports and copies of documents relating to the proceedings or duties of the municipalities as he may think fit to call for ; (d) inquire generally into the affairs of a municipality or with a view to ascertaining whether a municipal area is being satisfactorily administered, and for the purposes of such enquiry make use of any property of the municipality, and of the powers mentioned in clauses (a), (b) and (c), and the members and employees of the municipality shall render such assistance in the inquiry as may be deemed necessary. Explanation.- Any person so empowered shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860). (2) The Deputy Commissioner may record in writing for the consideration of any such municipality any observations that he may think proper in regard to the proceedings or duties of municipality. (3) Every municipality shall submit such periodical reports to the Deputy Commissioner or other authority as the State Government may direct.

Power to suspend execution of orders etc. (1) The State Government or the Director or the prescribed authority may by an order in writing and for reasons to be stated therein, suspend the execution of any resolution passed, order issued, licence or permission granted or prohibit the performance of any act by the municipality if in its opinion- (a) such resolution, order, licence, permission or act has not been legally passed, issued, granted or authorised; (b) such resolution, order, licence, permission or act is in excess of the powers conferred by this Act or is contrary to any law; or (c) the execution of such resolution or order, or the continuance in force of such licence or permission or the doing of such act is likely - (i) to cause loss, waste or misapplication of any money or damage to any property vested in the municipality ; (ii) to be prejudicial to the public health, safety or convenience; (iii) to cause injury or annoyance to the public or any class or body of person ; or (iv) to lead to a breach of peace. (2) Whenever an order is made by the Director or the prescribed authority under sub-section (1), it shall forthwith and in no case later than ten days from the date of order, forward to the State Government a copy of the order with the statement of the reasons for making it, and the State Government may confirm, set-aside or modify such order as it may deem fit.

(1) In case of emergency, the Deputy Commissioner may provide for the execution of any work, or the doing of any act which a municipality is empowered to execute or do, and the immediate execution or doing of which is, in his opinion necessary for the service or safety of the public and may direct that the expense, of executing the work or of doing the act shall be forthwith paid by the municipality. (2) Should the expenses be not so paid, the Deputy Commissioner may make an order directing the person having the custody of the balance of the municipal fund to pay the expenses, or so much thereof as may from time to time be possible from that balance, in priority to all other charges against the same.

Powers to provide for performance of duties in case of default of municipality. (1) When the Deputy Commissioner after due enquiry is satisfied that a municipality has made default in performing any duty imposed upon it by this Act or by any order or rule under this Act, he may, by an order in writing, fix a period of the performance of that duty ; and, should it not be performed within the period so fixed he may appoint some person to perform it, and may direct that the expenses thereof shall be paid, within such time as he may fix, by the municipality. (2) Should the expenses be not so paid, the Deputy Commissioner may make an order directing the person having the custody of the balance of the municipal fund to pay the expenses, or so much thereof as may from time to time be possible from that balance in priority to all other charges against the same.

Action of Deputy Commissioner to be immediately reported. When the Deputy Commissioner makes an order under section 264 or section 265, he shall forthwith forward to the Director a copy thereof, with a statement of reasons for making it with such explanation, if any, as the municipality of such municipal area may wish to offer and the Director may thereupon confirm, modify or rescind the order : Provided that if an officer subordinate to Deputy Commissioner under the delegated powers makes an order under section 264 or section 265, the power of confirmation, modification or recision of such order shall vest in the Deputy Commissioner, who shall before exercising such power, consider the explanation of the committee of such municipality which it may wish to offer and the Director may thereupon confirm, modify or rescind the order.

Power of State Government to give directions. The State Government may issue directions to any municipality for carrying out the purposes of this Act and in particular with regard to,- (a) various uses to which any land with a municipal area may be put; (b) repayment of debts and discharging of obligations ; (c) collection of taxes ; (d) observance of rules and bye-laws ; (e) adoption of development measures and measures for promotion of public safety, health, convenience and welfare ; (f) sanitation and cleanliness ; (g) establishment and maintenance of fire brigade ; (h) execution of any work in public interest.

(1) When a municipal area is constituted under this Act, the State Government may appoint a person to exercise the powers, discharge the duties and perform the function of the municipality for a period not exceeding two years or until the municipality is established whichever is earlier and he shall for the purposes aforesaid be deemed to be the municipality. (2) The person so appointed under sub-section (1) shall comply with such directions as may be given to him by the State Government, from time to time, for carrying the said purposes.

(1) The State Government and the Director or the prescribed authority acting under the orders of the State Government, shall be bound to require that the proceedings of municipalities shall be in conformity with law and with the rules in force under any enactment for the time being applicable to Himachal Pradesh generally or the areas over which the municipality have authority. (2) The State Government may exercise all powers necessary for the performance of this duty, and may among other things by order in writing, annul or modify and proceeding which it may consider not to be in conformity with law or with such rules as aforesaid, or for the reasons which would in its opinion justify an order by the Director or any prescribed authority under section 263. (3) The Director or the prescribed authority may, within his jurisdiction for the same purpose, exercise such powers as may be conferred upon him by the rules made in this behalf by the State Government.

General powers of State Government. Notwithstanding anything contained in this Act, the State Government shall have the power of reversing or modifying any order of any officer of the State Government passed or purporting to have been passed under this Act, if it considers to be not in accordance with the said Act, or the rules or to be for any reason inexpedient, and generally for carrying out the purposes of the Act the State Government shall exercise over its officers all powers of superintendence, direction and control : Provided that the power of reversing or modifying any order of any officer of the State Government shall not apply to the orders passed in an election by the authorised officer or the District Judge.

Power of State Government to dissolve municipality for default, abuse of powers, etc. (1) If at any time, it appears to the State Government or the prescribed authority that a municipality is persistently making the default in the performance of the duties imposed on it by or under this Act or under any other law for the time being in force, or exceeds or abuses its powers or fails to carry out any order of the State Government or the competent authority, the State Government or the prescribed authority, may, after such enquiry as it may deem fit, by an order dissolve such municipality and may order a fresh constitution thereof. (2) No order under sub-section (1) shall be passed unless reasonable opportunity has been given to the municipality for furnishing its explanation. The notice calling explanation shall be addressed to the President of the municipality and shall be served in the manner prescribed. The reply of the municipality to the notice shall be supported by the resolution of the municipality. (3) On dissolution of municipality under sub-section (1), the following consequences shall ensure, namely:- (a) all the members, President and Vice-President shall vacate their offices with effect from the date of such order ; (b) all powers and duties of the municipality shall, until the municipality is re-constituted, be exercised and performed by such person or committee of persons as the State Government or the prescribed authority may appoint in this behalf and where a committee of persons is so appointed, the State Government or the prescribed authority shall also appoint a head of such committee; and (c) where a committee is appointed under clause (b), any member of such committee duly authorised by it may issue or institute or defend any action at law on behalf of or against the municipality. (4) Any person appointed to exercise and perform the powers and duties of municipality during the period of dissolution may receive from the fund of the municipality concerned such payment for his service as the State Government may, by order, determine. (5) A municipality dissolved under sub-section (1) shall be re-constituted in accordance with the provisions of this Act within six months of its dissolution. Such re-constituted municipality shall function for the remaining term of the municipality: Provided that if the unexpired period is less than six months, the municipality shall not be reconstituted for this period.

Suspension of office bearer of municipalities. (1) The prescribed authority may suspend from office any office bearer- (a) against whom charges have been framed in any criminal proceeding under Chapters V-A, VI, IX-A, X, XII, sections 302, 303, 304-B, 305, 306, 312 to 318, 336-A, 336-B, 373 to 377 of Chapter XVI, sections, 395 to 398, 408, 409, 458 to 460 of Chapter XVII and Chapter XVIII of the Indian Penal Code, 1860 (45 of 1860) or under any law for the time being in force for prevention of adulteration of food stuff and drugs, suppression of immoral traffic in women and children and protection of civil rights ; or (b) who has been served with a notice alongwith a charge sheet to show cause under this Act for his removal from the office. (2) Where the inspection or an audit report discloses the mis-appropriation, mis-utilization or embezzlement of municipal funds by an office bearer of a municipality and the prescribed authority is satisfied that continuance in office of such a person will prejudice the enquiry under section 273 and apprehends tempering with record and witnesses may suspend such a person and in case he is in possession of any record, money or any property of the municipality, order him to hand-over such records, money or property to the Executive Officer/ Secretary of the municipality. (3) The order of suspension under sub-section (1) or (2) shall be reported to the State Government within a period of ten days and shall be subject to such orders as the State Government may deem fit to pass. If the order of suspension is not confirmed by the State Government within ninety days from the date of receipt of such report it shall be deemed to have been revoked. (4) In the event of both the President and Vice-President of a municipality being suspended under sub-section (1) or sub-section (2), the municipality shall nominate one of the elected members of the municipality who is the senior most in age, to hold the office of President or Vice-President as the case may be, and such shall perform all the duties and exercise all the powers of President or Vice-President, as the case may be, during the period for which suspension continues. (5) A person who has been suspended under sub-section (1) or sub-section (2) shall also forthwith stand suspended from the office of member or office bearer of any other municipality or standing committee or District Planning Committee or any other Committee of which he is a member or office bearer. Such person shall also be disqualified for being elected, under the Act during his suspension.

Removal of office bearers of municipality. (1) The State Government or the prescribed authority may after such enquiry as it may deem fit to make at any time, remove an office bearer - (a) if he has incurred any disqualification under this Act ; (b) if he has been guilty of mis-conduct in the discharge of his duties; or (c) if he refuses to act or becomes incapable of acting or is adjudged as insolvent ; (d) if he without reasonable cause absents himself from more than three successive consecutive meetings of the municipality or its committees ; (e) if his continuance in office is undesirable in the interest of the public : Provided that no person shall be removed unless he has been given an opportunity to show cause why he should not be removed from his office. Explanation.- For the purposes of this sub-section "misconduct" shall include - (a) any action which adversely affects - (i) the sovereignty, unity and integrity of India ; or (ii) the harmony and the spirit of common brotherhood amongst all the people of State transcending religious, linguistic, regional, caste or sectional diversity ; or (iii) the dignity of women ; or (b) gross negligence in the discharge of the duties under this Act; and (c) the failure of the President to convene the meeting of the municipality, at regular intervals as specified under this Act. (2) A person who has been removed under sub-section (1) shall forthwith cease to be a member of other municipality or Standing Committee or District Planning Committee or any other committee of which he is a (5) A person who has been suspended under sub-section (1) or sub-section (2) shall also forthwith stand suspended from the office of member or office bearer of any other municipality or standing committee or District Planning Committee or any other Committee of which he is a member or office bearer. Such person shall also be disqualified for being elected, under the Act during his suspension. 273. Removal of office bearers of municipality. (1) The State Government or the prescribed authority may after such enquiry as it may deem fit to make at any time, remove an office bearer - (a) if he has incurred any disqualification under this Act ; (b) if he has been guilty of mis-conduct in the discharge of his duties; or (c) if he refuses to act or becomes incapable of acting or is adjudged as insolvent ; (d) if he without reasonable cause absents himself from more than three successive consecutive meetings of the municipality or its committees ; (e) if his continuance in office is undesirable in the interest of the public : Provided that no person shall be removed unless he has been given an opportunity to show cause why he should not be removed from his office. Explanation.- For the purposes of this sub-section "misconduct" shall include - (a) any action which adversely affects - (i) the sovereignty, unity and integrity of India ; or (ii) the harmony and the spirit of common brotherhood amongst all the people of State transcending religious, linguistic, regional, caste or sectional diversity ; or (iii) the dignity of women ; or (b) gross negligence in the discharge of the duties under this Act; and (c) the failure of the President to convene the meeting of the municipality, at regular intervals as specified under this Act. (2) A person who has been removed under sub-section (1) shall forthwith cease to be a member of other municipality or Standing Committee or District Planning Committee or any other committee of which he is a member, such person shall also be disqualified for a period of six years to be elected as office bearer of a municipality under this act.

The State Government may, at any time for the purpose of satisfying itself as to the legality or the propriety of any resolution passed or order made by a municipality or any order purported to have been made under the provisions of this Act or the rules or the bye-laws made thereunder, call for and examine record relating to such resolution or order, as the case may be, and may pass such order in reference thereto as it thinks fit : Provided that no resolution or order shall be varied or reversed without affording a reasonable opportunity of being heard to the parties interested unless the Government is satisfied that such a resolution or order has been vitiated by unlawful consideration.

Power of inspection and supervision. (1) The Director may inspect the work, of municipalities and exercise the following powers :- (a) call for proceedings of any municipality or any extract of any book or document in the possession or statement of accounts or report ; (b) require a municipality to take into consideration any objection which appears to him to exist to the doing of anything which is about to be done or is being done by such municipality or any information which appears to him to necessitate the doing of anything by such municipality or within such period as he might fix ; (c) order a duty to be performed within a specified period if a municipality has made default in the performance of any duty and if such duty is not performed within the specified period to appoint a person to perform such duty and direct that the expenses thereof shall be paid by the defaulting municipality within such period as he might fix; (d) call for meetings of the municipality or any of its committees if no meeting of the municipality or its committees has been held as per the Act or rules. (2) The municipality may appeal to the Government against any order under clause (c) of sub-section (1) by the Director within thirty days from the date of the order.

Technical supervision and inspections. The heads of Departments concerned and the Officers incharge of the departments at the District level or Divisional level may inspect works or development schemes relating to that department under the control of any municipality and also to inspect relevant documents pertaining to such works or development schemes in the manner specified by the Government. (2) The scope of such inspections may cover technical aspects including feasibility, economic viability, the technical quality of work and the expenditure being incurred. (3) The notes of inspections by such officers after such inspections shall be forwarded to the Executive Officer or the Secretary of the concerned municipality for appropriate action.

Taking over of certain branches or departments of the municipality. When the State Government, after due enquiry, is satisfied that a municipality has committed default in as much as its particular branch or a department is incompetent of performing or does not adequately perform any of all of its functions, it may take over the control of such branch or department or the municipality under its control and may appoint additional staff, if necessary, for the efficient discharge of the functions of such branch or department and may direct that the expenses thereof shall be paid by the municipality within such time as the State Government may fix in this behalf.

Disputes. (1) In the event of any dispute arising between two or more municipalities or municipality and any other local authority in any matter in which they are jointly interested such dispute shall be referred to the State Government and the decision of the State Government thereon shall be final : Provided that if the dispute between a municipality and cantonment board the decision of the State Government shall be subject to approval of the Central Government. (2) The State Government, may, by rules made under this Act, regulate the relations between municipalities or municipality and other local authority in matters in which they are jointly interested.

(1) The State Government may frame forms for any proceeding of a municipality and may make any rules consistent with this Act to carry out the purposes thereof and in particular and without prejudice to the generally of the foregoing power make rules- (a) with respect to the powers and duties of municipalities; (b) as to the division of municipal area into wards, or of the inhabitants into classes, or both ; (c) as to the number of representatives proper for each ward and class; (d) as to the priority to be given to the several duties to the municipality ; (e) as to the authority on which money may be paid from the municipal fund ; (f) as to the formation and working of municipal fire brigades and the provisions of implements, machinery or means of communicating intelligence for the efficient discharge of their duties by such brigades ; (g) as to the conditions on which property may be acquired by the municipality or on which property vested in the municipality may be transferred by sale, mortgage, lease, exchange or otherwise ; (h) as to the intermediate office or offices, if any, through which correspondence, between municipality or members of municipality and the State Government or officers of that Government shall pass; (i) for the preparation of plans and estimates for works partly or wholly to be constructed at the expenses of municipalities, and for the preparation and periodical revision of maps and registers made under section 58 and for the authorities by which and the conditions, subject to which such plans, estimates, maps and registers are to be prepared and sanctioned ; (j) for the regulation of contracts with electric supply companies for the supply of electric energy ; (k) for the assessment and collection of, and for the compounding for, refunding or limiting refunds of taxes imposed under this Act, and for preventing evasion of the same; and for fixing the fees payable for notices of demand ; (l) as to the conditions on which a municipality may receive animals or articles into a bounded ware-house and as to the agreements to be signed by traders or others wishing to deposit animals or articles therein ; (m) as to the accounts to be kept by municipalities as to the conditions on which such accounts are to be open to inspection by inhabitants paying any tax under this Act, as to the manner in which such accounts are to be audited and published, and as to the powers of the auditors in respect of dis-allowance and surcharge ; (n) as to the preparation of estimates of income and expenditure of municipalities, and as to the persons by whom, and the conditions subject to which, such estimates may be sanctioned ; (o) as to returns, statements and reports to be submitted by municipalities ; (p) as to the powers to be exercised by Deputy Commissioners under section 269 and the powers to be exercised by such Local Self Government Directorate as the State Government may establish ; (q) as to the language in which business shall be transacted, proceedings, recorded and notices issue; (r) as to the publication of notices ; (s) to regulate the proceedings of persons empowered to accept composition under section 248 for alleged offence ; (t) mode of assessment, apportionment of compensation under section 156 amongst, and payment to, the persons entitled thereto ; (u) mode of communication of the order under section 156 to the persons affected thereby ; (v) the manner in which the compost is to be made ; (w) as to the establishment of training institutions for employees of municipalities and course of training for different classes of employees ; (x) as to the imposition of fine where owners do not take advantage of any amenities provided by the municipalities, such as electricity, tap water supply, sewerage etc. ; (y) as to regulate the charges to be paid to the safai mazdoors engaged in house scavenging ; (z) to regulate the re-erection and setting up of substantial boundary marks, defining the limits or altered limits of the area subject to its authority ; (za) as to the penalty for cutting streets or removal of obstruction or encumbrances obstructing streets or drains ; (zb) as to the exemption to a municipality from liability to any forfeiture, penalty or damages for cutting of the supply of water or not supplying water in cases of draught or other unavoidable cause or accident, etc.; (zc) as to regulate the licencing of markets, forming of markets, collection of rents and fees and removal of such persons who occupy stalls or space in an unauthorised manner ; (1) (o) as to returns, statements and reports to be submitted by municipalities ; (p) as to the powers to be exercised by Deputy Commissioners under section 269 and the powers to be exercised by such Local Self Government Directorate as the State Government may establish ; (q) as to the language in which business shall be transacted, proceedings, recorded and notices issue; (r) as to the publication of notices ; (s) to regulate the proceedings of persons empowered to accept composition under section 248 for alleged offence ; (t) mode of assessment, apportionment of compensation under section 156 amongst, and payment to, the persons entitled thereto ; (u) mode of communication of the order under section 156 to the persons affected thereby ; (v) the manner in which the compost is to be made ; (w) as to the establishment of training institutions for employees of municipalities and course of training for different classes of employees ; (x) as to the imposition of fine where owners do not take advantage of any amenities provided by the municipalities, such as electricity, tap water supply, sewerage etc. ; (y) as to regulate the charges to be paid to the safai mazdoors engaged in house scavenging ; (z) to regulate the re-erection and setting up of substantial boundary marks, defining the limits or altered limits of the area subject to its authority ; (za) as to the penalty for cutting streets or removal of obstruction or encumbrances obstructing streets or drains ; (zb) as to the exemption to a municipality from liability to any forfeiture, penalty or damages for cutting of the supply of water or not supplying water in cases of draught or other unavoidable cause or accident, etc.; (zc) as to regulate the licencing of markets, forming of markets, collection of rents and fees and removal of such persons who occupy stalls or space in an unauthorised manner ; (zd) as to the constitution of committees consisting of official and non-official members at Divisional and District headquarters, to examine and discuss the annual accounts and the reports of the municipalities and to suggest remedial measures thereto ; (ze) as to the manner in which the seats in the District Planning Committee shall be filled in ; (zf) as to the manner in which the chairpersons of the District Planning Committee shall be chosen ; (zg) as to the functions relating to the District Planning Committees ; (zh) generally for carrying out the purposes of this Act. (2) The rules under sub-section (1) may among other matters provide, (i) for reservation of seats in "municipalities" ; (ii) for determination of number of elected members in municipalities. (3) The Municipal Account Code at present in operation in the municipalities in the State of Himachal Pradesh shall be deemed to have been made in pursuance of the powers conferred upon the State Government by sub-section (1) of this section. (4) In making rules under clauses (f) and (k) of sub-section (1), the State Government may direct that a breach of any provision thereof shall be punished with a fine which shall not be less than fifty rupees and more than five hundred rupees. (5) All rules made under this Act shall be subject to previous publication. (6) A rule under this section may be general for all municipal areas or may be special for the whole or any part of any one or more municipalities as the State Government directs.