Liability of Chairperson, Deputy Chairperson, councillor, Commissioner, officer and employee for any loss, waste or misapplication.

(1) The Chairperson, Deputy Chairperson, Councillor, Commissioner or any officer or employee of the municipality 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 and a suit for compensation may be instituted against such Chairperson, Deputy Chairperson, Councillor, Commissioner, officer or employee of the municipality by the Council with the previous sanction of the Government or by the Government. (2) Every such suit shall be commenced within three years after the date on which the cause of action arose.