(1) No sum shall be expended by or on behalf of the Board unless the expenditure of the same is covered by a current budget grant or can be met by reappropriation or by drawing on the closing balance.
(2) The closing balance shall not be reduced below such limit as may be prescribed.
(3) The following items shall be exempted from the provisions of sub-section (1) and
(2), namely:—
(a) refund of moneys belonging to contractors or other persons held in deposit, and of moneys collected by, or credited to, the Board by mistake;
(b) payments due under a decree or order of a Court;
(c) sums payable under a compromise of any suit or other legal proceedings or claim effected under this Act;
(d) sums payable under this Act by way of compensations; and
(e) payments required to meet any emergency.
(4) Whenever any sum exceeding rupees ten thousand is expended under clause (c) of sub-section (3), the Chairman shall forthwith report the circumstances to the Board explaining how it is proposed to cover the expenditure.