Chapter IV Chapter IV

There shall be formed for each municipality a municipal fund, and there shall be placed to the credit thereof-

Application of fund. (1) The committee shall set apart and apply out of the municipal fund- (a) first, such as may be required for the payment of any amounts falling due on any loan legally contracted by it : (b) secondly, such sum as the committee may be required by the State Government to contribute towards the cost of such Local Self-Government Board or Inspectorate as the State Government may establish, for the purpose of advising, assisting and supervising the work of municipal committees and other local bodies : Provided that such sum shall not exceed an amount equal to one perfect of the income for the financial year preceding the year, in which the committee is called upon to make the contribution: (c) thirdly, such sum as may be required to meet the charges, of its own establishment, including such subscriptions and contributions as are referred to in Sections 43 and 44, and such sum as may be required for the maintenance of a police establishment under Chapter VI; (d) fourthly, such sum as may be required to pay the expenses incurred in auditing the accounts of the committee, and such portion of the costs of any public expenditure by the Central Government or the State Government as may be held by the State Government to be equitably payable by the committee in return for services rendered to it. (e) fifthly, such sum as the committee may be required by the State Government to contribute towards the maintenance of pauper lunatics or pauper lepers sent from any place in the State to mental hospitals or public asylums whether in or outside the State. (f) sixthly, such sum as may be due to the State Government in respect of the cost of maintenance by the State Government, on behalf of the committee, of water-works, drainage, sewage or other works. (g) seventhly, such sum to be paid annually by the committee to the State Government by way of contribution as is equivalent to- (i) the total provision made in the budget for the year 1957-58 under the main head ‘Education’ excluding the provision under the sub-heads relating to public libraries, colleges, reading rooms and museums or pertaining to such other matters not relating to schools as the State Government may specify, educational grants and the provisions made for ‘original works’ relating to schools ; and (ii) a sum representing one per centum of the total income from its own resources for the year 1957-58, in lieu of the deductions made for ‘original works’ made under clause (i): Provided that in respect of the financial year 1957-58, the committee shall make a payment to the State Government of the sums which have remained unexpended on 31st March, 1958, out of the provisions under the head ‘Education’ in the budget of 1957-58 ; Provided further that in computing the total provision under sub-section (i), school fees or other moneyes received from students by the Committee, income from any property transferred to the State Government, donations for education from the public and such other income of the Committee as may be specified by the State Government shall be excluded. (2) Subject to the charges specified in sub-section (1) and to such rules as the State Government may make with respect to the priority to be given to the several duties of the committee, the municipal fund shall be applicable to the payment in whole or part, of the charges and expenses incidential to the following matters within the municipality, and with the sanction of the State Government outside the municipality, namely :- (a) the construction, maintenance, improvement, cleansing and repair of all public streets, bridges, town-walls, town-gates, embankments, drains, privies, latrines, urinals, tanks and water-courses and the preparation of compost manure; (b) the watering and lighting of such streets or any of them ; (c) the construction, establishment and maintenance of schools, hospitals and dispensaries, and other institutions for the promotion of education or for the benefit of the public health, and of rest-houses, sarais, poor-houses, markets, stalls, encamping grounds, pounds, and other works of public utility, and the control and administration of public institutions of any of these descriptions : (d) grant-in-aid to schools, hospitals, dispensaries, poor-houses, leper- asylums, and other educational or charitable institutions ; (e) the training of teachers and the establishment of scholarships; (f) the giving of relief and the establishment and maintenance of relief works in time of famine or scarcity; (g) the supply, storage and preservation from pollution of water for the use of men or animals ; (h) the planting and preservation of trees ; and the establishment and maintenance of public parks and gardens ; (i) the taking of a census, the registration of births, marriages and deaths, public vaccination and any sanitary measure ; (j) the holding of fairs and any industrial exhibitions ; (k) the preparation and maintenance of a record of rights in immovable property; and (l) all acts and things which are likely to promote the safety, health, welfare or convenience of the inhabitants or expenditure whereon may be declared by the committee, with the sanction of the State Government to be an appropriate charge on the municipal fund. (3) Notwithstanding any contained in the foregoing sub-sections of this Act no charges or expenses shall be paid from the municipal fund incidential to any matter which has been specifically declared by the State Government by general or special order to be a matter in regard to which no expenditure shall be met from municipal fund. (4) Subject to the provisions of this Act and the rules and bye-laws made thereunder it shall be the duty of the President and of any member presiding at any meeting of the committee or of a sub-committee to disallow the consideration or discussion of any matter for which provision is not made in Section 52 or any other section of the Act.

Payment of salary to president out of funds. With the sanction of the State Government a salary of such amount as the State Government may fix may be paid to the president of a committee not being a salaried servant of the Government, out of the municipal fund.

(1) All moneys payable to the credit of the municipal fund shall be received by a municipal employee authorised by the committee in this behalf and shall be forthwith paid into the State Bank of India, in a Treasury of the Government, in a Nationalised Bank or in any other Bank approved by the Government in this behalf. Explanation. - For the purposes of this section Nationalised Bank means a Bank specified in column 2 of the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.

Investment of same. (1) A committee may, with the previous sanction of the Deputy Commissioner, invest any portion of its municipal fund in securities of the Central Government, or invest it in such other securities or place it in such manner as the State Government may approve in this behalf, and vary such investment or placement for others of like nature. (2) The income resulting from such securities or placements and the proceed of the sale of the same shall be credited to the municipal fund.

(1) Subject to any special reservation made or to any special conditions imposed by the State Government, all property of the nature hereinafter in this section specified and situated within the municipality, shall vest in and be under the control of the committee, and with all other property which has already vested or may hereafter vest in the committee, shall be held and applied by it for the purposes of this Act, that is to say :- (a) all public town-walls, gates, markets, stalls, slaughter-houses, manure and night-soil, depots and public buildings of every description which have been constructed or are maintained out of the municipal fund ; (b) all public streams, springs and works for the supply, storage and distribution of water for public purposes, and all bridges, buildings, engines, materials and things connected therewith or appertaining thereto, and also any adjacent land (not being private property) appertaining to any public tank of well; (c) all public sewers and drains, and all sewers, drains, culverts and water-courses in or under any public streets, or constructed by or for the committee alongside any public street, and all works, materials and things appertaining thereto ; (d) all dust, dirt, dung, ashes, refuse, animal matter or filth or rubbish of any kind or dead bodies of animals, collected by the committee from the street, houses, privies, sewers, cess-pools or elsewhere or deposited in places fixed by the committee under Section 154 ; (e) all public lamps, lamp-posts, and apparatus connected therewith or appertaining thereto : (f) all land or other property transferred to the committee by the Government or acquired by gift, purchase or otherwise for local public purposes; (g) all public streets, not being land owned by Government and the pavements, stones and other materials, thereof, and also trees growing on and erections, materials, implements and things provided for such streets. (2) Where any immovable property is transferred otherwise than by the sale by the State Government to a municipal committee for public purposes, it shall be deemed to be a condition of such transfer, unless specially provided to the contrary, that should the property be at any time resumed by Government, the compensation payable therefor shall, notwithstanding anything to the contrary in the Land Acquisition Act, 1894, in no case exceed the amount if any paid to the Government for the transfer, together with the cost or the present value, whichever shall be less, or any buildings erected or other works executed on the land by the municipal committee. (3) The committee shall maintain a register and a map of all immovable property of which it is the proprietor, or which vests in it ; or which it holds in trust for the State Government.

(1) The management, control and administration of every public institution maintained out of the municipal fund, shall vest in the committee. (2) When any public institution has been placed under the direction, management and control of the committee, all property, endowments and funds belonging thereto shall be held by the committee in trust for the purposes to which such property, endowments and funds were lawfully applicable at the time when the institution was so placed : Provided that the extent of the independent authority of the committee in respect of any such institution may be prescribed by the State Government : Provided also that nothing in this section shall be held to prevent the vesting of any trust property in the Treasurer of Charitable Endowments under the Charitable Endowments Act, 1890.

When any land, whether within or without the limits of a municipality, is required for the purposes of this Act, the State Government may, at the request of the committee, proceed to acquire it under the provisions of the Land Acquisition Act, 1894, and on payment by the committee of the compensation awarded under that Act, and of any other charges incurred in acquiring the land, the land shall vest in the committee. Explanation. - When any land is required for a new street or for the improvement of an existing street, the committee may proceed to acquire, in addition to the land to be occupied by the street, the land necessary for the sites of the buildings to be erected on both sides of the street and such land shall be deemed to be required for the purposes of this Act.

The committee may, with the sanction of the State Government transfer to Government any property vesting in the committee under section 56 or section 57, but not so as to affect any trusts or public rights subject to which the property is held : Provided that where a committee has passed a resolution under section 3 of the Punjab Local Authorities (Aided Schools) Act, 1959 or the State Government has taken over management of aided schools of a committee under section 5 of that Act, all rights and interests in the establishment, maintenance and management of the aforesaid schools immediately before the 1st October, 1957, including all interests in the lands, buildings, playgrounds, hostels of the said schools as also in the movable properties like furniture, books, apparatus, maps and equipment pertaining thereto shall be deemed to have been transferred to the State Government on that date and, all unspent balances in respect of grants and contributions received for the maintenance and promotion of these schools shall be deemed to have been surrendered to the State Government.

Saving of Act XI of 1879. Nothing in this Act shall affect the Local Authorities Loan Act, 1879.