Liability of Chief Commissioner, Zonal Commissioner and councillor for loss, waste or misapplication of fund, etc

(1) The Chief Commissioner and Zonal Commissioner every councillor shall be liable for the loss, waste or misapplication of any money or other property owned by or vested in the corporation, if such loss, waste, or misapplication is a direct consequence of his willful neglect or misconduct and a suit for compensation may be instituted against him by the corporation with the previous sanction of the Government. (2) Every such suit shall be commenced within three years after the date on which the cause of action arose.