(1) Notwithstanding anything contained in any law for the time being in force, any local authority which has agreed to pay a certain sum of money for the maintenance of a Certified Institution shall make payment of that sum to the Government before a date prescribed in that behalf.
(2) If any sum is not paid by a local authority before the prescribed date, the Government may make an order directing any person, who for the time being has custody of any moneys on behalf of the local authority as its officer, treasurer, banker or otherwise to pay the sum from such moneys as he may have in his hands or may from time to time receive, to the Government and such person shall be bound to obey such order and every payment made pursuant to such order will be sufficient discharge to such person from all liability to the local authority in respect of any amount paid by him out of the moneys of the local authority so held by him.