Payment not to be made unless covered by budget-grant:

No payment of any sum shall be made out of the Municipal Fund unless such expenditure is covered by the current budget grant and a sufficient balance of such budget-grant is still available notwithstanding any reduction or transfer thereof, which may have been made under the provisions of this Act. Provided that the provisions of this section shall not apply to the payments made in the following classes of cases, namely:- (a) Refund to taxes and other moneys, which are authorised under this Act;

1. (b) Refund of securities and call deposits to contractors or other persons;
2. (c) Sums payable in any of the following circumstances, namely (d) under the orders of the Government on the failure of the Municipality to take any action as required by the Government; or (i) under any other enactment for the time being in force; or (ii) under a decree or order of a civil or criminal court passed against the Municipality; or (iii) under a compromise of any claim, suit or other legal proceedings; or
   • (iv) on account of costs incurred in taking immediate action under

section 63 by the Chairperson in the case of Municipal Council or

Town council as the case may be;

1. (d) temporary payment for works urgently required by the government in the public interests;
2. (e) sums payable as compensation under this Act or the rules made thereunder; (f) Expenses incurred by the Municipality on special measures, if any taken on the outbreak of dangerous diseases; and (g) amount payable to the government by way of audit fee, if any