Mode of making contracts

(1) No contract or agreement on behalf of the market committee for the purchase, sale, lease, mortgage or other transfer of or acquisition of interest in immoveable property shall be executed on behalf of the market committee except with the sanction of the market committee: Provided that in cases where the powers under this sub-section in respect of any matters are delegated to a sub-committee, sanction of such sub-committee shall be obtained.

1. (2) Save as provided in sub-section (1),-
   • (i) the Secretary of the market committee may execute contracts or agreements on behalf of the market committee where the amount or value of such contract or agreement does not exceed 4[such amount as may be prescribed] regarding

matters in respect of which he is generally or specially authorised to do so by a resolution of the market committee;

2[(ii) in any case other than the one referred to in clause (i), a contract or agreement on behalf of the market committee shall be executed by the Chairman and Secretary of the market committee;]

3[(iii) x x x]

1. (3) Every contract entered into by the market committee shall be in writing and shall be signed on behalf of the market committee by the person or persons authorised to do so under the provisions of sub-section (2);
2. (4) No contract other than a contract executed as provided in sub-sections (1), (2) and
3. (3) shall be valid or binding on the market committee;
4. (5) Where a contract or agreement is entered into on behalf of a market committee, the Secretary of the market committee shall report the fact to the market committee at its meeting convened on any date next after the date of the entering into of such contract or agreement. 1[(6) The provisions of sub-sections (1) to (5) shall apply also to contracts relating to execution of any works proposed to be carried out at the expense of the market committee: Provided that if such works are undertaken with the assistance by way of grant by the State Government or the Central Government or by way of loan from any financing agency the repayment of which has been guaranteed by the State Government, the contract shall be entered into by an officer of the State Government authorised by it and the work shall be executed under the supervision of such officer.] 2.

¹ Substituted by Act 17 of 1980 w.e.f. 3.11.1979.

Substituted by Act 35 of 1986 w.e.f. 17.6.1986.

³ Omitted by Act 35 of 1986 w.e.f. 17.6.1986.

⁴ Substituted by Act 16 of 1991 w.e.f. 1.4.1994.