408 The New Delhi Municipal Council Act

Liability of Chairperson, etc., for loss, waste or misapplication of New Delhi Municipal Fund or property

(1) Every member, Chairperson, and every municipal officer and other municipal employee shall be liable for the loss, waste, or misapplication of any money or other property owned by or vested in the Council, if such loss, waste or misapplication is a direct consequence of his neglect or misconduct and a suit for compensation may be instituted against him by the Council with the previous sanction of the Central Government or by the Government.

(2) Every such suit shall be instituted within three years after the date on which the cause of action arose.

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