Chapter V FINANCE

such time as they may determine, pay to the Board an annual grant of such amount as may be fixed by the Government from time to time.

1. (2) The Corporation shall contribute to the Board on the first day of April every year a sum equal to two per cent of 1ts gross annual revenue: Provided that the Corporation shall pay the contribution for the financial year 1960-61, on such date as may be fixed by Government by notification in that behalf.
2. (3) The annual payment due from the Corporation under sub- section (2) shall be made in priority to all other payments due from it, except those referred to in section 157 of the Trivandrum City Munici- pal Act (Travancore Act IV of 1116).

Loans Act.— (1) The Board shall be deemed to be a local nuthority, as defined in the Travancore-Cochin Local Authorities Loans Act, 1951, :

for the purpose of borrowing money under that Act, but the provisions of that Act and of the rules made thereunder shall have effect subject to the provisions contained in this Act.

1. (2) The Board shall also have power to borrow money from the Government on such terms as may be approved by them.

Whenever the borrowing of any sum of money has been approved by the Government, the Board may, instead of borrowing such sum or any part thereof from the public, take credit from any bank, on a cash account to be kept in the name of the Board to the extent of such sum or part and, with the previous sanction of the

Duerswon of borrowed money to purposes other than those first approved.— Whenever any sum of money has been borrowed by the Board for the purpose of meeting particular expenditure or of repaying a particular loan, no portion thereof shall be applied to any other purpose without

the previous sanction of the Government.

1. (1) When ever money 15 borrowed by the Board on debentures, the debentures 1 shall be in such form as the Board may, with the previous sanction of the Government, determine. . (2) All debentures shall be signed by the Chairman and one other Trustee. , (3) The holder of any debenture in any form prescribed under sub-section (1) may obtain in exchange therefor a debenture in any other form so prescribed, upon such terms asthe Board may deter- mine.
2. (4) Every debenture issucd bythe Board shall be transferable by endorsement, unless some other mode of transfer is specified therein,

debentures issued under this Act shall bear the signature of the Chair- man; and such signature may be engraved, lithographed or impressed by any mechanical process.

security issued under this Act is payable to two or more persons jomntly, and either or any of them dies, then, notwithstanding anything con- | tained 1n section 45 of the Indian Contract Act, 1872 (Central Act 9 of i 1872), the debenture or security shall be payable to the survivor or V survivors of such persons: :

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Recept by joint holder for interest or dividend —Where two or more | persons are joint holders of any debenture or security issued under this Act, any one of such persons may give an effectual receipt for any H interest or dividend payable in respect of such debenture or security, | unless notice to the contrary has been given to the Board by any other of such persons. '

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due from the Board for interest on, or the .repayment of loans, shall be made in priority to all other payments due from the Board,

Rvery loan taken by the Board shall be repaid within the period approved by the Govern- ment and, subject to the provisions of sub-section (2) of section 123, by such of the following methods as may be so approved, namely :— ‘

1. (a) from a sinking fund established under section 101 in respect of the loan, or
2. (b) by paying equal yearly or half-yearly instalments of principal, or of principal and mterest, throughout the said period, or
3. (c) if the Board has, before borrowing mouncy on debentures, reserved by public notice a power to pay off thc loan by periodical instalments and to select by lot the particular debentures to be dis- charged at particular periods then, by paying such instalments at such periods, or
4. (d) from money borrowed for the purpose, or
5. (e) partly from the sinking fund established under section 101 in respect of the loan, and partly from money borrowed for the purpose. 10. Establishment and maintenance of sinking funds.—(1) Whenever the Government have approved the repayment of a Joan from a sinking fund, the Board shall establish such a fund, and shall pay into it every year, until the loan is repaid, a sum so calculated that if 1egularly paid throughout the period approved by the Government, it would, with accumulations in the way of compound interest, he sufficient, after pay- ment of all expenses, to pay off the loan at the end of that period.

1. (2) The rate of interest on the basis of which the sum referred to in sub-section (1) shall be calculated shall be such as may be prescribed by the Government.

Notwithstanding anything contained in section 101, if at any time the sun standing at credit of the sinking fund established for the repayment of any loan is of such amount that, if allowed to accumulate at the rate of interest prescribed under sub-section (2) of that section, it will be sufficient to repay the loan at the end of the period approved by the Government, then, with the permission of the Government, further annual payments into such funds may be discontinued.

1. (1) All money paid into any sinking fund shall as soon as possible be invested, under the orders of the Board, in—
   • (a) Government securities, or
   • (b) securities guaranteed by the Central or any State Govern. ment, or (¢) debentures issued by the Corporation, or .
   • (d) debentures issued by the Board, in the joint names of the Secretary to the Government of Kerala in the Finance Department and the Member, Board of Revenue, in charge of Housing, to be held by them as trustees for the purpose of repaying from ume to time the debentures issued by the Board. . . (2) All dividents and other sums received in respect of any such investment shall, as soon as possible after receipt, be paid into the : appropriate sinking fund and invested 1n the manner prescribed by sub- section (1).
2. (3) Any investment made under this section may, from time to time, subject to the provisions of sub-section (1), be varied or trans posed.

The two trustees referred to in sub- section (1) of section 1031n whose names any sinking fund is invested may, from time to time, apply the same, or any part thereof, in or towards the discharge of the loan or any part of the loan for which such fund was established; and until such loan is wholly discharged, shall not apply the same for any other purpose.

1. (1) The two trustees aforesaid shall, at the end of every financial year, transmit to the Chairman a . statement showing—
   • (a) the amount which has been invested during the year under section 103,
   • (b) the date of the last investment made previous to the trans- mission of the statement,
   • (c) the aggregate amount of the securities held by them,
   • (d) the aggregate amount which has, up to the date of the state- ment, been applied under section 104 in or towards repaying loans, and
   • (e) the aggregate amount alredy paid into each sinking fund.
2. (2) Every such statement shall be laid before the Board and publi- shed in the Gazette.

1. (1) The Examiner of Local Fund Accounts, Kerala, shall examine the said sinking funds every year and ascertain whether the cash and the current value of the securities at : credit of such funds are actually equal to the amount which would have accumulated had investments been regularly made and had the rate of interest as originally estimated been obtained therefrom.
2. (2) The Board shall forthwith pay into any sinking fund any amount which the Examiner of Local Fund Accounts may certify to be the deficiency therein after examination as aforesaid, unless the Govern- ment specially sanction a gradual readjustment. 107 Estimates of income and expenditure to be laid annually before the Board.—(1) The Chairman shall, at a special meeting to be held in ’ the month of February in each year, lay before the Board an estimate of the income and expenditure of the Board for the next ensuing | financial year. ;
3. (2) Every such estimate shall make provision for the due fulfilment of all the habilities of the Board and for the efficient administration . of this Act. : !
4. (3) Every such estimate shall differentiate capital and revenue funds, and shall be prepared in such form, and shall contain such \ details, as the Government or the Board may, from time to time, direct. f |
5. (4) Every such estimate shall be completed and printed and a copy thereof sent, by post or otherwise, to each Trustee at least ten clear days before the date of the meeting at which the estimate is to be laid before the Baord.

before the Board.

The Board shall consider every estimate so laid before it and shall sanction the same, either without alteration or with such alteration as it may think fit.

1. (1) Every such estimate, as sanctioned by the Board, shall be submitted to the Government who may, at any time within two months after receipt of the same,—
   • (a) approve the estimate, or i
   • (b) disallow the estimate or any portion thereof, and return the estimate to the Board for amendment.
2. (2) If any estimate is so returned to the Bod, it shall forthwith proceed to amend it and shall resubmit the estimate as amended to the

Transmission of copy of estimate to the Commissioner—A copy of gvery such estimate shall, when approved by the Government, be sent by the Board to the Commissioner of the Corporation of Trivandrum.

1. (1) The Board may, at any time during the year for which any estimate has been sanctioned, cause a supplementary estimate to be prepared and laid before it at a special mecting.
2. (2) The provisions of sub-sections (3) and (4) of section 107 and of sections 108 to 110 shall apply to every supplementary estimate.

1. (1) No sum shall be expended by or on behalf of the Board unless the expenditure of the same is covered by a current budget grant or can be met by reappropriation or by drawing on the closing balance. @ The closing balance shall not be reduced below such limit as may be fixed in this behalf by the Government from time to time. RN
2. (3) The following items shall be exempted from the provisions of sub-sections (1) and (2), namely :—
   • (a) repayments of moneys belonging to contractors or other persons and held in deposit, and of moneys collected by, or credited to, the Board by mistake;
   • (b) payments due under a decree or order of a court or under an award of the Tribunal;
   • (c) sums payable under a compromise of any suit or other legal proceeding or claim effected under this Act;
   • (d) sums payable under this Act by way of compensation; and
   • (e) Payments required to meet any pressing emergency.
3. (4) Whenever any sum exceeding five thousand rupees is expended under clause (¢) of sub-section (3), the Chairman shall lorthwith repor the circumstances to the Government explaining how the Board proposes to cover the expenditure.

All moneys payable to the Board shall be received by the Chairman, and shall forthwith be paid into such bank as may be approved by the Government in this behalf to the credit of an account which shall be styled “The Account of the Trustees for the Improvement of the City of Trivandrum”.

1. (1) Surplus moneys at the credit of the said account may from time to time be—
   • (a) deposited at interest in the bank aforesaid; or
   • (b) invested in such securities or debentures as may be approved by the Government.
2. (2) All such deposits and investments shall be made by the Chairman on behalf of, and with the sanction of, the Board; and, with * the like sanction, the Chairman may at any time withdraw any deposit so made, or dispose of any securities, and re-deposit or re-invest the money so withdrawn or the proceeds of the disposal of such securities.

1. (1) No payment shall be made by the bank out the account referred to in section 113, except upon a cheque.
2. (2) Payment of any sum due by the Board exceeding one hundred | rupees in amount shall be made by means of a cheque and not in any other way. .

All orders for making any deposit, investment, withdrawal or disposal under section 114, and all cheques referred to in section 115, must be signed— )

1. (a) by the Chairman and the Secretary to the Board, or
2. (b) in the event of the illness or absence from the City of the Chairman or the Secretary, then by the Secretary or the Chairman, as the case may be, and by a Trustee other than the Chairman,

Before the Chairman or any other Trustee or the Secretary to the Board signs a cheque under section 116, he must satisfy himself that the sum for . which ‘such cheque is drawn is required for a purpose or work speci- fically sanctioned by the Board or 1s an item of payment specified in sub-section (3) of section 112. 118, Definition of “cost of management”.—(1) The expression “cost of management” as used in the following sections in this Chapter, means—

1. (a) the salary and house-rent and conveyance allowance (if any) of the Chairman or acting Chairman, and any other allowances and any | contributions payable to or in respect of the Chairman or acting | Chairman; !
2. (b) the salaries, fees and allowances of, and the contributions paid under section 141 in respect of, officers and servants of the Board referred to in section 27;
3. (c) the remuneration of other employees of the Board excep. | employees who are paid by the day or whose pay is charged to temporary work; |
4. (d) all payments made under sections 77 and 141 on account of the Tribunal; and (¢) all office expenses incurred by the Board or the Tribunal. | [i . Lavi DES THT ARARY 49 § 0 ah Tal Tee vee ve J © ALA SPAT.

1. (2) The expression “office expenses” in clause (c).. of sub-section... ~~
2. (1) means expenses incurred for carrying on office work, and includes - the rent of offices, the provision of turniture therefor, and charges for printing and stationery.

keep a capital account and a revenue account.

(7?) The capital account shall show separately all expenditure incurred by the Board on each improvement scheme.

There shall be credited to the capital account—

1. (a) all sums (except interest) received By way of betterment fees under this Act;
2. (b) all moneys received on account of. loans taken by the Board in pursuance of this Act;
3. (c) the proceeds of the sale of any land belonging to the Board which was purchased out of any such loan;
4. (d) where land was purchased out of an advance from the revenue account, the portion of the proceeds of the sale of such land which remains after crediting to the revenue account the amount of such advance;
   • • (e) the proceeds of the sale of any movable property (including securities for money invested from the capital account) belonging to the-Bonrd;
5. (f) all lump sums received fiom the Government in aid of the capital account;
6. (g) all premia received by the Board in connexion with leases for any term exceeding forty years; .
7. (h) all sums (if any) which the Government direct under sub- section (2) of section 123 to be credited to the capital account; and

1. (1) all moneys resulting fiom the sale of securities by direction of the Government under section 124,

The moncys credited to the capital account shall be held by the Board in tiust, and shall be applied to—

1. (a) meeting all costs of framing and executing improvement schemes;
2. (b) meeting the cost of acquiring land for carrymg out any of the purposes of this Act,
3. (c) meeting the cost of constructing buildings required for carrying out any of the purposes of this Act;
4. (d) the repayment of loans from money borrowed in pursuance of this Act, (¢) making payments in pursuance of section 14G, otherwise than for interest or for expenses of maintenance or working;
5. (f) making, or contributing towards the cost of surveys in pursuance of section 163; 34/4095
6. (g) meeting such proportion of the cost of management as may be prescribed by the Board;
7. (h) temporarily making good the deficit (if any) in the revenue account at the end of any financial year,

There shall be credited to the

revenue account—

1. (a) all interest received in pursuance of section 86 or section 87;
2. (b) all sums contributed by the Government and by the Corporation under section 91;
3. (c) all annually recurring sums received from the Government in aid of the funds of the Board;
4. (d) all damages reccived by the Board under section 158;
5. (e) all premia received by the Board in connexion with leases for any term not exceeding forty years;
6. (f) all rents of land vested in the Board; and , (g) all other receipts by the Board which are not required by section 120 to be credited to the capital account.

| revenue account shall be held by the Board in trust, and shall be | applied to—

1. (a) meeting all charges for interest and sinking fund due on account of any loan taken 1n pursuance of this Act, and all other charges incurred in connexion with such loans;
2. (b) paying all sums due from the Board in respect of rates and taxes imposed under the Trivandrum City Municipal Act, upon land vested in the Board;
3. (c) paying the cost (if any) of maintaining a separate establish- ment for the collection of the rents and other proceeds of land vested in the Board;
4. (d) paying the fees determined for arbitrators under section 83, (¢) paying all sums which the Government may direct to be paid to any auditor under section 130,
5. (f) making payments in pursuance of section 146 for wnterest or for expenses of maintenance or working;
6. (g) paying the cost of management, excluding such proportion ~~ thereof as may be debuted to the capital account under clause (g) of section 121;
7. (h) paying all other sums due from the Board other than those which are required by section 121 to be disbursed from the capital account.

1. (2) The surplus (if any) remaining after making the payments referred to in sub-section (1) shall, subject to the maintenance of a closing balance as required by sub-section (2) of section 112, be invested in the manner prescribed in section 103 towards the service of any loans outstanding after the expiry of sixty years [rom the commencement of this Act, unless the Government otherwise direct.

account is invested. —If at any time after any surplus referred to in sub- section (2) of section 123 has been invested, the Government are satisfied that the investment is not needed for the service of any loan referred to in that sub-section, they may direct the sale of the securities held under the investment. M

1. (1) Notwith= standing anything contained in section 123, the Board may advance any sum standing at the credit of the revenue account for the purpose of meeting capital expenditure.
2. (2) Every such advance shall be 1efunded to the revenue account as soon as may be practicable. 126, Advances from caprtal account to revenue account.—(1) Any deficit in the revenue account at the end of any financial year may be made good by an advance from the capital account.
3. (2) Every such advance shall be refunded to the capital account in the following financial year.

At the end of each half of every financial year, the Board shall submit to the Govern- ment an abstract of the accounts of its receipts and expenditure for such half-year.

examined and audited once in every financial year by such auditor as the Government may appoint in this behalf.

The said auditor may—

1. (a) by summons in writing require production of any document, the perusal or examination of which he believes necessary for the elucidation of the accounts;
2. (b) by summons in writing require any person who has the custody or control of any such document or who is accountable there- for 10 appear in person before him;
3. (c) require any person so appearing to make and sign a declara~ tion with respect to such document or to answer any uestion or to prepare and furnish any statement relating thereto,

such remuneration as the Government may direct.

(1) The said auditor shall—

1. (a) report to the Board and to the Government any material impropriety or irregularity which he may observe in the expenditure, or in the recovery of moneys due to the Board, or in the accounts;
2. (b) furnish to the Board such information as it may from time to time require concerning the progress of his audit;
3. (c) report to the Chairman any loss or waste of money or other property owned by or vested in the Board caused by neglect or mus- conduct, with the names of persons directly or indirectly 1esponsible for such loss or waste; and
4. (d) submit to the Chairman a final statement of the audit and a duplicate copy thereof to the Government within a period of three months from the end of the financial year, or within such other period as the Government may allow in that behalf.

1. (2) (a) The said auditor may disallow every item contrary to law and surcharge the same on the person making or authorizing*the making of the illegal payment ; and may charge against any person responsible therefor, the amount of any deficiency or loss incurred by the negligence or misconduct of that person or of any sum which ought to have been but is not brought into account by that person and shall, in every such case, certify the amount due from such person. Explanation.—It shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss, to contend that notwithstanding his negligence or misconduct, the deficiency or loss would not have occurred but for the negligence or misconduct of some other person.
   • (b) The said auditor shall state in writing the reasons for his decision in respect of every disallowance, surcharge or charge and furnish a copy thereof by registered post to the person against whom it is made.
   • (c) If the person to whom a copy of the decision 1s so furnished refuses to receive 1t, he shall nevertheless be deemed to have been duly . furnished with the copy, within the meaning of clause (b) ; and the period of fourteen days fixed in sub-sections (3) and (1) shall be calcu- lated from the date of such refusal.
2. (3) Any person aggrieved by a disallowance, surcharge or charge made under sub-section (2) may, within fourteen days after he has been furnished with a copy of the decision of the auditor, either (a) apply to the Dustrict Court exercising jurisdiction in the city, to set aside such disallowance, surcharge, or charge in which case the Court may after taking such evidence as it thinks necessary, confirm, modify i or remit such disallowance, surcharge or charge, with such orders as to costs as it may think proper in the circumstances ; or (b) in lieu of such application, appeal to the Government who shall pass such orders as they think fit.
3. (4) Every sum certified to be due from any person by the auditor i under this Act shall be paid by such person to the Board within four- H teen days after he has been furnished with a copy of the decision of the | auditor unless within that time such person has applied to the Court j or appealed to the Government against the decision under sub-section i (3); and such sum if not so paid, or such sum as the Court or the 1 Government shall declare to be due, shall be recoverable on an appli- | cation made by the Board to the Court in the same way as an amount decreed by it.
4. (5) Notwithstanding anything contained in this section, the Gov- ernment may at any time direct that the recovery of the whole or any | part of the amount certified to be due from any person by the auditor | under this Act shall be waived if mm their opinion such a course is neces- sary, considering all the circumstances of the case. |
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The Chairman shall cause the report mentioned in clause (d) of sub- section (1) of section 131 to be printed and shall forward a printed copy thereof to each Trustee and shall bring such 1eport before the Board for consideration at its next meeting.

It shall be the duty of the Board forthwith to remedy any defects or iricgulmities that may be pointed out by the auditor.

As soon as practicable after the receipt of the said report, the Board shall pie- parc an abstract of the accounts to which 1t relates, and shall publish such abstract in the Gazeite and send a copy of the nbstract to the Commissioner and to the Government.