The municipality may, within two months of the receipt of the notice required by sub-section (2) of section 176 refuse to sanction the proposed street, or may sanction it either absolutely or subject to such written direction as to levelling, metalling, paving, means of drainage, direction and width as the municipality may deem fit to issue, and the person laying out or making such street shall comply with the sanction of the municipality in every particular :
Provided that should the municipality neglect or omit for two months after the receipt of such notice, or if an order has been issued under clause (b) of section 177 fails within the period specified in such order, to make and deliver to the person who has given such an order of sanction or refusal in respect thereof, it shall be deemed to have sanctioned the proposed street absolutely.