Chapter III TRANSACTION OF BUSINESS BY THE MUNICIPAL COUNCIL

(1) The municipal council shall ordinarily hold at least one meeting in every month for the transaction of business, which shall be called an ordinary general meeting. (2) The president may, whenever he thinks fit, and shall, upon the written request of not less than one-third of the whole number of councillors and for a date not more than fifteen days after the presentation of such request, call a special general meeting. (3) If the president fails to call a special general meeting as provided in sub-section (2), the vice-president or one-third of the whole number of councillors may call such meeting for a day not more than thirty days after the presentation of such request and require the chief officer or the municipal commissioner to give notice to the councillors and take such action as may be necessary to convene the meeting. (4) Any meeting may be adjourned until the next or any subsequent date, and an adjourned meeting may be further adjourned in like manner.

Seven clear days’ notice of an ordinary general meeting, and three clear days’ notice, or in case of great urgency, notice of such shorter period as is reasonable, of a special general meeting, specifying the time and place at which such meeting is to be held and the business to be transacted threat, shall be given by the chief officer or the municipal commissioner to the councillors, and posted up at the municipal office. The said notice shall include any motion or proposition which a councillor shall have given written notice, not less than ten 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: Provided that the motion or proposition in respect of which notice is given shall relate to matters connected with the municipal administration and shall not be inconsistent with the provisions of this Act.

Place of holding meetings and maintenance of order thereat. (1) Every meeting of a municipal council shall, except for reasons to be specified in the notice convening the meeting, be held in the building used as a municipal office by such municipal council. (2) The president or the person presiding over a meeting shall preserve order thereat and shall have all powers necessary for the purpose of preserving such order. (3) The president or the person presiding over a meeting may direct any councillor whose conduct is in his opinion grossly disorderly, to withdraw immediately from the meeting and any, councillor so directed to withdraw shall do so forthwith and shall absent himself during the remainder of the meeting. (4) Subject to sub-section (5), every meeting shall be open to the public, unless a majority of the members present at the meeting decide that any inquiry or deliberation pending before the municipal council should be held in private. (5) The Government may make rules under clause (a) of sub-section (2) of section 323 for the purpose of admission of the members of the public to meetings of municipal councils and for the removal by force, if necessary, of any member of the public so admitted if he is found interrupting or disturbing the proceedings of the meeting. (6) Notwithstanding anything contained in section 56, in the case of grave disorder arising in a meeting, the president or the person presiding may, if he thinks it necessary to do so, adjourn the meeting to a date specified by him.

Quorum. If less than one-third of the total 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 thirty minutes, adjourn the meeting to such hour on the following or some other future day as he may reasonably fix, and a notice of such adjournment shall be fixed up in the municipal office, and the business which should 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, provided that not less than one-fourth of the total number of councillors be present. provided that if any meeting called for the purpose of election of President or Vice-President is adjourned to the following dayu or to a future day for want of quorum, it shall not be necessary to have a quorum for such adjourned meeting.

Presiding Officer. (1) The president or in his absence, the vice-president shall preside at every meeting of the municipal council. (2) In the absence of both the president and the vice-president from the meeting, the members present shall elect one from among themselves to preside. (3) The president or the person presiding over a meeting shall have and exercise a second or casting vote in all cases of equality of votes. (4) Notwithstanding anything contained in the foregoing sub-sections, at any meeting of the municipal council, while any resolution expressing want of confidence in the President is under consideration, the President, or while any resolution expressing want of confidence in the Vice-President is under consideration, the Vice-president, shall not, though he is present, preside, but shall have the right to speak and otherwise to take part in the proceedings of the municipal council while any such resolution is under consideration. The provisions of sub-section (2) shall mutatis mutandis apply for such meeting.

Method of deciding questions. (1) Save as otherwise provided in this Act, all matters required to be decided by the municipal council shall be decided by the majority of the votes of the members present and voting. (2) The voting shall be by show of hands, but the municipal council may, subject to such rules as may be made under clause (a) of sub-section (2) of section 323 resolve that any question or class of questions shall be decided by ballot. (3) At any meeting, unless voting be demanded by at least four members, a declaration by presiding officer at such meeting that a resolution has been carried or lost, and an entry to that effect in the minutes of the proceedings shall, for the purposes of this Act, be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against such resolution. (4) If voting as aforesaid is demanded, the votes of all the members present who desire to vote shall be taken under the direction of the presiding officer at the meeting and the result of the voting shall be deemed to be the resolution of the municipal council at such meeting.

Business to be transacted at meetings and order of business how to be settled. (1) Save as provided in the proviso to sub-section (2) of section 59, no business shall be transacted and no proposition shall be discussed at any general meeting unless it has been mentioned in the notice convening such meeting, or in the case of a special general meeting in the written request for such meeting. (2) 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: Provided that answers to interpellations shall be given priority and not more than half an hour shall be allotted for the said purpose.

There shall be kept in Kannada, and if the municipal council so resolves, in English, either in lieu of or in addition to Kannada, minutes of the names of the councillors and of the Government officers, if any, present and of the proceedings at each meeting, in a book to be provided for this purpose, which shall be signed, by the presiding authority of such meeting, and shall at all reasonable times be open to inspection by any councillor, and on payment of a fee of twenty naye paise by any other person.

Councillors not to vote on matter in which they are interested. (1) No councillor shall vote at a meeting of the municipal council or of any committee thereof on any question relating to his own conduct or vote or take part in any discussion on any matter (other than a matter affecting generally the residents of the town or city or of any particular ward), which affects his pecuniary interest or any property in respect of which he is directly or indirectly interested, or any property of or for which he is a manager or agent. (2) If the presiding authority is believed by any councillor present at the meeting to have any such pecuniary interest in any matter under discussion, and if a motion to that effect be carried, he shall not preside at the meeting during such discussion, or vote on or take part in it. Any other councillor may be chosen or elected to preside at the meeting during the continuance of such discussion.

Adjournment of meetings. Subject to such rules as may be prescribed, 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.

Modification and cancellation of resolutions. No resolution of a municipal council shall be modified or cancelled within three months after the passing thereof, except by a resolution passed by not less than one-half of the total number of councillors at a general meeting, whereof notice shall have been given, fulfilling the requirements of section 48 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.

Motions and amendments. (1) Every motion or any amendment thereof shall be received in writing and then duly moved. Every motion shall be seconded, and until seconded no debate thereon shall take place nor shall it be put to vote. No amendment which merely negatives an original motion shall be allowed. (2) Any motion or amendment may be withdrawn by its proposer with the consent of the municipal council. (3) An amendment to an amendment may be moved at any stage of the debate. (4) On the conclusion of the debate, in the event of there being several amendments to an amendment, the presiding authority shall put the last amendment to vote first and after it is disposed of the next preceding amendment shall be put to vote and so on until all the amendments are disposed of. The original motion or the amended motion, as the case may be, shall then be put to vote. (5) When any motion or amendment involves many points the presiding authority may divide it and put each point to vote separately. (6) When a motion or amendment has been put to vote and declared by the presiding authority as carried, no further proposals for amending the motion or amendment shall be entertained.

Conduct of ordinary meetings. (2) Every councillor shall have the right to interpellate and to move resolutions on matters connected with the municipal administration, subject to such rules as may be prescribed. (2A) Every councillor shall be furnished with copies of the proceedings of the meetings by the Director of Municipal Administration or the Chief Officer along with the notice of the next meeting. (3) Every councillor shall have access to the records of the municipal council after giving due notice to the chief officer or the municipal commissioner, as the case may be, provided that the chief officer or the municipal commissioner may for reasons given in writing forbid such access. The councillor may appeal from the order of the chief officer or the municipal commissioner to the president whose decision shall be final. (4) The president shall have full access to all the records of the municipal council and the chief officer or the municipal commissioner shall comply without unreasonable delay with any requisition of the president for any information appertaining to the municipal administration. The President may also call for any record of the Municipal Council from the Director of Municipal Administration, the Chief Officer or any other officer, but any record so made available shall be returned within one month. (1) At an ordinary meeting business shall be conducted in the following order:— (a) the minutes of the previous ordinary meeting and of any special meeting held since shall be read and confirmed; (b) business postponed at the previous meeting shall be considered; (c) subjects noted on the agenda shall then be considered. (2) A councillor may propose any resolution connected with or incidental to the subjects included in the list of business: Provided that the president may propose any urgent subject of a routine nature not included in the list of business if no councillor objects to it. (3) All points of order shall be decided by the presiding authority with or without discussion as he may deem fit, and his decision shall be final. (4) Any question of procedure not herein provided for in this Act or the rules made thereunder shall be decided by a majority of the councillors present and voting. (1) At an ordinary meeting business shall be conducted in the following order:— (a) the minutes of the previous ordinary meeting and of any special meeting held since shall be read and confirmed; (b) business postponed at the previous meeting shall be considered; (c) subjects noted on the agenda shall then be considered. (2) A councillor may propose any resolution connected with or incidental to the subjects included in the list of business: Provided that the president may propose any urgent subject of a routine nature not included in the list of business if no councillor objects to it. (3) All points of order shall be decided by the presiding authority with or without discussion as he may deem fit, and his decision shall be final. (4) Any question of procedure not herein provided for in this Act or the rules made thereunder shall be decided by a majority of the councillors present and voting.

Notice of business to be transacted must in certain cases be given to the Government Executive Engineer. Except for reasons which the presiding authority deems emergent, no business relating to any work which is being executed for the municipal council by the Public Works Department shall be transacted at any meeting of a municipal council unless a letter has been addressed to the Executive Engineer or the Assistant Executive Engineer concerned informing him of the intention to transact such business thereat and of the motions or propositions to be brought forward concerning such business.

Certain Government officers may attend meetings of municipal council. (1) The Executive Engineer of the ward concerned, the principal officer of Health in the district and any other officer approved and notified by the Government in this behalf, may be present at any meeting of a municipal council and, with the consent of the municipal council, 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 municipal council: Provided that the said officer shall not be entitled to vote upon any such question. (2) If it shall appear to a municipal council that the presence of the Executive Engineer of the Public Works Department or the principal officer of Health in the district or an Educational Officer or an officer of the Department of Veterinary Services and Animal Husbandry or the Executive Engineer Karnataka Electricity Board or the Executive Engineer Public Health Engineering or the Deputy Assistant Director Town Planning or any other officer approved and notified by the Government in this behalf is desirable for the purpose aforesaid at any future meeting of such municipal council, it shall be competent to such municipal council, 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 send him to the meeting as his representative, instead of appearing thereat in person.

(1) A councillor may, subject to the provisions of sub-section (2), ask the Municipal Commissioner or the Chief Officer questions on any matter relating to the municipal government or the administration of this Act or the functions of any of the municipal authorities. (2) The right to ask a question shall be governed by the following conditions, namely:— (a) not less than ten clear days’ notice in writing specifying the question shall be given to the Municipal Commissioner or the Chief Officer; (b) not more than two questions shall be sent by any councillor for being answered at any ordinary meeting; (c) no question shall,— (i) bring in any name or statement not strictly necessary to make the question intelligible, (ii) contain arguments, ironical expressions, imputations, epithets or defamatory statements, (iii) ask for an expression of opinion or the solution of a hypothetical proposition, (iv) ask as to the character or conduct of any person except in his official or public capacity, (v) relate to a matter which is not primarily the concern of the municipal council or of any of the municipal authorities, (vi) make or imply a charge of a personal character, (vii) raise questions of policy too large to be dealt with within the limits of an answer to a question, (viii) repeat in substance questions already answered or to which an answer has been refused, (ix) ask for information on trivial matters, (x) ordinarily ask for information on matters of past history, (xi) ask for information set forth in accessible documents or in ordinary works of reference, (xii) raise matters under the control of bodies or persons not primarily responsible to the municipal council, or (xiii) ask for any information on matter which is under adjudication by a court of law. (3) The presiding authority shall disallow any question which is, in his opinion, in contravention of the provisions of sub-section (2). (4) If any doubt arises whether any question is or is not in contravention of the provisions of sub-section (2), the presiding authority shall decide the point and his decision shall be final. (5) The Municipal Commissioner or the Chief Officer shall not be bound to answer a question if it asks for information which has been communicated to him in confidence or if in the opinion of the presiding authority it cannot be answered without prejudice to public interest or the interest of the municipal council. (6) Unless otherwise directed by the presiding authority or the presiding officer of the meeting, every question shall be answered by the Municipal Commissioner or the Chief Officer at a meeting of the municipal council. (7) Written answer to admitted questions shall as far as possible be given to the councillors one hour before the meeting. (8) Questions not answered at any meeting for want of time or otherwise shall lapse.

Casual vacancies. A vacancy occurring in a standing committee shall, as soon as possible, be filled up by the appointment of a member thereto subject to the same provisions as those under which the member whose place is to be filled up was appointed. A person appointed under this section shall hold office so long only as the person in whose place he is appointed would have held it if the vacancy had not occurred. No person shall be ineligible at any time for appointment as a member of any such committee on the ground that he has previously been a member of that committee. (a) taxation, finance and appeals; (b) public health, education and social justice; (c) town planning and improvement; (d) accounts; (2) The standing committee shall consist of such number of councillors not being more than eleven or less than five as the municipal council may determine, and elected by the municipal council in accordance with the rules framed under clause (a) of sub-section (2) of section 323. (3) The members of the standing committee shall hold office for a period of one year. (4) The President and the Vice-President shall not be eligible for election as members of the standing committee. (5) The standing committees shall exercise the functions allotted to them under this Act and subject to any limitations specified by the municipal council especially in this behalf or generally by rules made under clause (a) of sub-section (2) of section 323, and to the provisions of Chapter XIV shall exercise all the powers of the municipal council. A vacancy occurring in a standing committee shall, as soon as possible, be filled up by the appointment of a member thereto subject to the same provisions as those under which the member whose place is to be filled up was appointed. A person appointed under this section shall hold office so long only as the person in whose place he is appointed would have held it if the vacancy had not occurred. No person shall be ineligible at any time for appointment as a member of any such committee on the ground that he has previously been a member of that committee.

The Chairman of the Standing Committee shall be elected by the members thereof by the system of single transferable vote.

Procedure at meetings. (1) The provisions of sections 49, 52 and 54 and of sub-section (1) of section 61 shall be complied with in all proceedings of committees as if meetings of committees were included in all references to meetings of municipal council contained in those provisions. If the chairman of any committee has been absent from the municipality for a period exceeding seven days, the president or vice-president may, in his absence, call a meeting thereof: Provided that notwithstanding anything to the contrary contained in section 54, committees may record their proceedings either in English or in Kannada as they may think fit. (2) Committees may meet and adjourn as they think proper, but the chairman of a committee may, whenever he thinks fit, and shall upon the written request of the president of the municipal council 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 committee meeting unless more than one-third of the members of the committee be present thereat.

(1) Notwithstanding anything contained in section 67, 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 the Municipal Commissioner or Chief Officer of the municipal council for the observation and votes of the members of the committee. (2) Previous to circulating any such proposition as aforesaid, the chairman may, if he thinks fit, and, if the business to which it relates is of the nature described in section 60 shall obtain thereupon the remarks, if any, which any officer, whose presence the municipal council would be entitled to require under provisions of sub-section (2) of section 61, desires to record. (3) The decision on any proposition so circulated shall be in accordance with the majority of votes of the members of the committee who vote upon it, unless a special meeting is convened to consider the said proposition. (4) Every decision arrived at by the committee under this section shall be recorded in the minute book.

Subordination of committees to instructions of municipal council and compliance with requisitions of municipal council. (1) Every committee shall conform to any instruction that may from time to time be given to it by the municipal council; the municipal council may, at any time, call for any extract from any proceedings of any committee, and for any return, statement or account or report concerning or connected with any matter with which any committee has been authorised or directed to deal, and every such requisition shall, without unreasonable delay, be complied with by the committee so called upon. (2) Every order passed by a standing committee shall be subject to such revision and open to such appeal as may be required or allowed in respect thereof by any rules that may be made by the Government in this behalf.

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 municipal council may be delegated, in accordance with rules to be made by the Government in this behalf, to the president or to the vice-president, or to the chairman of any committee, or to one or more stipendiary or honorary officers, but without prejudice to any powers that may have been conferred on a Municipal Commissioner or Chief Officer under Chapter XIV or any committee by or under section 63; 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: Provided that in a municipal area for which there is a Municipal Commissioner the power or duties or executive functions under this Act or under any rule or bye-law made thereunder conferred or imposed upon or vested in the Municipal Commissioner shall not be delegated save as provided in section 344.

Joint committees of local bodies and joint levy of toll. (1) A municipal council may from time to time,— (a) join with any other municipal council or with any Town Panchayat, cantonment authority, Taluk Panchayat or Grama Panchayats or with any combination of such municipal councils or panchayats,- (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 panchayats. (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 Government, into an agreement with a municipal council, Town Panchayat, cantonment authority, Taluk Panchayat or Grama Panchayats or committees or combinations as aforesaid that the levy of tolls by the bodies so contracting may be levied together instead of separately within the limits of the area subject to the control of the said bodies. (2) Where a municipal council has requested the concurrence of any other local authority under the provisions of sub-section (1) in respect of any matter and such other local authority has refused to concur, the Deputy Comissioner may pass such orders as he may deem fit, requiring the concurrence of such other local authority, not being a cantonment authority, in the matter aforesaid; and such other local authority 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 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.

Subject to the provisions of section 365 and the rules made under section 323, every municipal council shall be entitled to employ such officers and servants as may be necessary for the discharge of its duties.

(1) Subject to the conditions and restrictions contained in sub-sections (2) to (9), and such other restrictions and conditions as the Government may by general or special orders specify, every municipal council shall be competent to lease, sell or otherwise transfer any movable or immovable property which belongs to, or for the purpose of this Act has 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) No free grant of immovable property whatever may be its value, no grant for an upset price and no lease for a term exceeding five years, and no sale or other transfer of immovable property exceeding twenty-five thousand rupees in value, shall be valid unless the previous sanction of the Government is obtained. (3) In the case,— (a) of a lease for a period exceeding one year or of a sale or other transfer, 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 municipal council by a resolution passed at a general meeting is required. (4) In the case of a contract for the purchase of movable property, or for the sale of any movable property belonging to a municipal council, if the expenditure which the purchase would involve, or the value of the property to be sold, as estimated in the municipal accounts exceeds one thousand rupees in the case of a town municipal council and two thousand rupees in the case of a city municipal council, the sanction of the municipal council is required. (5) Before any contract for the supply of materials or goods or for the execution of any work which will involve an expenditure exceeding five thousand rupees is entered into, tenders shall be publicly invited in such manner as may, from time to time, be determined by the municipal council, from persons willing to enter into such contract and, when the estimated value exceeds such amount as may be prescribed no such contract shall be entered into without the previous approval of the Government or of an officer duly authorised by the Government in this behalf. (6) In the case of every contract not otherwise provided for in the sub-sections (2) to (4), the sanction of such committee, or of such person as under the provisions of this Act or of the rules for the time being in force thereunder, is empowered in this behalf, is required. (7) Every contract entered into by or on behalf of municipal council, other than a contract to which sub-section (6) applies, shall be in writing, and shall be signed by the president or vice-president and two other councillors, and shall be sealed with the common seal of the municipal council. Every contract to which sub-section (6) applies shall be executed by the chairman of such committee or by such other person as is empowered in that behalf, in such manner and form as according to the law for the time being in force, would bind such chairman or person if such contract were executed by him on his own behalf. (8) No contract which is not made in accordance with the requirements of this section shall be valid or binding on the municipal council. (9) The provisions of this section shall be subject to the provisions of section 86 and Chapter XIV.

The grant, lease, sale or other transfer of movable or immovable property by the municipal council may be subject to such conditions as the municipal council may specify and notwithstanding anything contained in the Transfer of Property Act, 1882, or any other law, for the time being in force, the grant, lease, sale or other transfer shall be subject to such conditions.

Notwithstanding anything contained in section 72 any person appointed by the Government to execute any work on behalf of a municipal council may, subject to such control as the Government may prescribe, make such contracts as are necessary for the purpose of executing such works to the extent of the sum provided for such work; and the municipal council shall pay to the person so appointed such sums as may be required for the said purpose, to the extent aforesaid.

Whenever a municipal council requires any immovable property for the purposes of this Act, the Government may, at the request of the municipal council procure the acquisition thereof under the Land Acquisition Act, 1894, and on payment by the municipal council of the compensation awarded under that Act and of all charges incurred by the Government in connection with the proceedings, the immovable property shall be transferred to the municipal council and shall thereafter vest in such council.

(1) Except as herein otherwise provided, no president or councillor shall be personally liable in respect of any contract or agreement made, or for any expense incurred by or on behalf of, the municipal council; the municipal fund shall be liable for and be charged with all costs in respect of any such contract or agreement and all such expenses. (2) Without prejudice to any other action under this Act or any other law, the president, the vice-president and every councillor, the Municipal Commissioner, the Chief Officer or other employee of the municipal council, shall be liable for the loss, waste or misapplication, if such loss, waste or misapplication of any money or other property owned by or vested in the municipal council is a direct consequence of his neglect or has been caused or facilitated by his misconduct.

(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 municipal council, or in any employment with, under, by, or on behalf of, a municipal council other than as a municipal officer or servant, shall be disqualified for being an officer or servant of such municipal council. (2) If any municipal officer or servant shall acquire or has acquired directly or indirectly, by himself or his partner, any share or interest in any such contract for employment as is referred to in sub-section (1), he shall be liable to be transferred or removed from his office by an order of the authority appointing him: Provided that before an order of removal is made, such officer or servant shall be given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him: Provided further that no person by reason of his being a share-holder, in or member of, any company be held to be interested in any contract entered into between such company and the municipal council unless he is a director of such company. Explanation.—For the purpose of this section, “company” includes a co-operative society.

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 municipal council not being a share or interest such as, under section 16, it is permissible for a person to have, without being thereby disqualified for being a councillor, shall be punished with fine which may extend to five hundred rupees.

Councillors, etc., to be deemed public servants. (1) Every councillor, officer or servant of a municipal council, every auditor appointed under section 290 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 and the Prevention of Corruption Act, 1947 (Central Act II of 1947) for the time being in force. (2) The words “State Government” and “Government” in section 161 of the Indian Penal Code, shall for the purposes of sub-section (1) of this section be deemed to include a municipal council.

Validity of proceedings. (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 a chairman or member of a committee appointed under this Act, shall be deemed to vitiate any act or proceeding of the municipal council or of any such committee, as the case may be, in which such person has taken part, whenever the majority who were parties to such act or proceeding, were entitled to act. (2) No resolution of a municipal council 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 municipal council or committee, were not prejudicially affected by such irregularity. (3) Until the contrary is proved every meeting of a municipal council 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. (4) During any vacancy in a municipal council or committee the continuing councillors or members may act as if no vacancy had occurred. (5) No act done or proceeding taken under this Act shall be questioned on the ground merely of any defect or irregularity not affecting the merits of the case. (a) incur expenditure beyond the said limits,— (i) in the acquisition of land, or (ii) in the construction, maintenance, repair or purchase of works for the purpose of obtaining supply of water required for the inhabitants of the municipal area, or of providing the supply of electrical energy for the use of the inhabitants of the said municipal area or of establishing slaughter houses or places for the disposal of night soil or sewage or carcasses of animals beyond the said limits, or for drainage works or for the purpose of providing mechanically propelled transport facilities for 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 area, or for any other purpose calculated to promote the health, safety or convenience of the inhabitants of the said municipal area; or (b) make whether within or beyond the limits of the municipal area a contribution towards expenditure incurred by any other municipal council or a Taluk Panchayat or a Grama Panchayat or cantonment authority or other public institution or person or body of persons for measures promoting the health, education or convenience of the public and calculated to benefit the residents within the limits of the contributing municipal council; or (c) create scholarships tenable outside the limits of the municipal area. (3) Nothing in this section, or in any other provision of this Act, shall be deemed to make it unlawful for a municipal council when with the sanction of the Government it has constructed works beyond the limits of the said municipal area 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 vacant lands in any place whether such place is or is not within the limits of the said municipal area, any quantity of water or electrical energy not required for the purpose of this Act within the said municipal area, of the advantages afforded by the system of such 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 municipal council and such person or the occupier or owner of such buildings or vacant lands, or (b) to incur any expenditure, on such terms with regard to payment as may be settled as aforesaid, for the construction, maintenance, repair or alteration of any connection pipes or any electric supply lines or other works necessary for the purpose of such supply or for the extension of such advantages.