Liability for loss, waste or misapplication of money or property of Municipality.

(1) Every person shall be liable for the loss, waste, or misapplication of any money or other property, owned by, or vested in, the Municipality, if such loss, waste or misapplication is a direct consequence of his neglect or misconduct in the performance of his duty under this Act, and he may, after being given an opportunity by a notice served in the manner provided for the service of summons in the Code of Civil Procedure, 1908, to show cause by a representation, in writing or oral, why he should not be required to make good the loss, by order, be surcharged with the value of such property or the amount of such money by the Commissioner-cum-Secretary, Urban Development and Housing Department, of the State Government and if the amount is not paid within one month of the expiry of the period of appeal specified in sub-section (2), it shall be recoverable as an arrear of tax leviable under this Act. (2) The person, against whom an order under sub-section (1) is made, may, within thirty days of the date of communication of the order, appeal to the State Government, and the State Government may confirm, modify or disallow the surcharge: Provided that no person shall, under this section, be called upon to show cause after the expiry of a period of four years, or, in the case of a Councillor, after a period of one year, from the occurrence of such loss or waste or misapplication.