1f, at anytime. -
(a) It appears to the Government on the report refereed to in section 74; or
(b) The Government, is satisfied after inquiry, that the Municipality or any municipal authority has made default in performing any function or discharging any duty imposed on it by or under this Act or the rules made thereunder or any law for the time being in force it may, by order, in writing fix a period for the due performance of such function or discharge of such duty and the Municipality shall be bound to perform such function or discharge such duty within the period so fixed.
80. Dissolution of Municipality,—
(1) If in the opinion of the Government, a Municipality,—
(a) Is not competent to perform, or has shown gross neglect in the performance of, the duties imposed upon it by or under this Act or any other law for the time being in force; or
(b) Persistently makes default in the performance of such duties or complying with lawful directions and orders issued by the Government or any authority under any law for the time being in force to issue such directions or orders; or
(c) Exceeds or abuses its power; or
(d) The financial position and the credit of the Municipality is seriously threatened, the Government may by an order published in the Official Gazette with reasons therefor, dissolve the Municipality:
280
Provided that Municipality shall be given reasonable opportunity of being heard within a period of not less than fifteen days in such manner, as may be prescribed before its dissolution.
(2) If any question arises as to whether any of the grounds mentioned in clauses (a), (b), (c), or (d) of sub-section (1), has been satisfied the opinion of the Government as recorded in writing in the order of dissolution, shall be final and conclusive.
81. Consequences of dissolution,—
(1) When a Municipality is dissolved under Section 80
(a) All members of the Municipality shall vacate their offices forthwith;
(b) All powers, functions and duties of the Municipality; and the Chairperson or Deputy Chairperson of a Municipal Council or a Town Council, as the case maybe shall during the dissolution, subject to such directions, as the Government may from time to time, give in this behalf, be exercised, performed, and discharged by a Government officer to be known as Administrator, as the government may, by notification, appoint in this behalf, and
(c) all properties vested in the Municipality shall, during the period of dissolution, vest in the Government.
(2) The Government shall fix the remuneration of the Administrator appointed under clause (b) of sub-section (1) and may direct that such remuneration shall be paid out of the Municipal fund of the Municipality.
(3) Upon the dissolution of a Municipality under sub-section (1), the Government shall reconstitute a Municipality in accordance with the provisions of this Act.
82. Appointment of an Administrator when election cannot be completed,-
(1) Where on account of an order of any Court, election to constitute a Municipality cannot be completed,-
(a) Before the expiry of its duration specified under section 10
(b) Before the expiry of a period of six months from the date of its dissolution;
The Government may, by notification, direct that during the period of operation of the order of the Court,- 281
(i) All powers sand duties of the municipality, Chairperson and Deputy Chairperson, when elections to constitute a Municipal Council or a Town Council, as the case may be, cannot be completed and the committees thereof, shall, subject to such directions, as the Government may, from time to time, give in this behalf, be exercised and performed by a government officer to be known as Administrator, as the Government may appoint in this behalf, and
(ii) all properties vested in the Municipality, shall, during the period of the operation of the order of the Court, vest in the Government.
(2) The Government shall fix the remuneration of the Administrator appointed under clause (i) of sub section (1), and may direct that such remuneration shall be paid out of the municipal Fund.
(3) After the expiry of the period of the order the Court, the Government shall take further steps to constitute the Municipality in accordance with the provisions of this Act.
83. Appointment of Administrator in special or emergent circumstances,
(1) Notwithstanding anything contained in this Act, where due to certain special, emergent or unforseen circumstances, election to a Municipality cannot be held or completed before the expiry of its duration specified in section 10 or before the expiry of a period of six months of its dissolution, the Government may, by notification, appoint a Government officer to be known as Administrator to exercise, perform and discharge the powers, duties and functions of a Municipality subject to such directions, as may be given in this behalf by the Government.
(2) All powers and duties of a Municipality, Chairperson or Deputy Chairperson, when election to constitute a municipal Council or a Town Council as the case may be, cannot be held or completed and the committees thereof, shall subject to such direction as the Government may from time to time, give in this behalf, be exercised and performed by such Administrator,
(3) All properties vested in the Municipality, shall during the period, when elections are not held or completed, vest in the Government.
(4) The government shall fix the remuneration of Administrator appointed under sub-section (1), and may direct that such remuneration shall be paid out of the Municipal Fund.
282
CHAPTER -IX Urban Station Committee
83.A.(1) Where an area is specified as Urban Station Committee area under section 5, the Government shall, by notification, establish Urban Station Committee for such area.
(2) The Urban Station Committee shall be composed of such members to be appointed or elected as the Government may, by notification, direct.
(3) A Committee established under sub section (1) of this section shall be a body corporate by the name of "The Urban Station Committee" and shall have a perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold or dispose of properties and may by the said name sue and be sued.
(4) The Government may appoint any person, whether a member of the Urban Station Committee or not, to be Chairperson or Deputy Chairperson or may authorize such committee to elect its Chairperson or Deputy Chairperson or both and fix the term of the office of Chairperson and Deputy Chairperson.
83B. Functions and Powers of Urban Station Committee:
Subject to the financial resources at the disposal and organisational capacity of an Urban Station Committee, the Government may, by notification, assign any of the functions and powers of Municipal Council or Town Council to the Urban Sation Committee, as maybe specified.
83 C. Urban Station Committee Fund All moneys received by Urban Station Committee shall be kept and be applied in the manner as provided under the provisions of Chapter - I of Part III of this Act.
283 Part — Ill Finance Chapter - 1 Municipal Fund
84. Municipal Fund:
There shall be constituted for each municipality a Municipal Fund to be called:
(a) In the case a municipal council, the municipal fund of the Municipal Council, and
(b) In the case a Town Council, the municipal fund of the Town Council.
to be held in a Trust by the Municipal Council or the Town Council, as the case may be, for the purpose of this Act and all the moneys realised or realisable under this Act and all moneys otherwise received by the Municipal Council or the Town Council, as the case maybe, shall be credited thereto.
85. Custody of Municipal Fund All moneys received on account of the Municipal Fund of a Municipality, shall be deposited with the State Bank of India or any of its subsidiaries, or with any notionalized bank or with the Nagaland State Cooperative Bank in the municipal area of the Municipality and shall be credited to an account to be called
(a) In the case of Municipal Council, the account of the Municipal Council; or
(b) in the case of a Town Council, the account of the Town Council, as the case may be, to which it belongs:
Provided that if in the Municipal area of the Municipality, there is no branch of the State Bank of India or anyone of its subsidiaries or any Nationalized Bank or with the Nagaland State Cooperative Bank, the moneys on account of the Municipal Fund may, with the approval of the Government be deposited in any other bank in the Municipal area or in any branch of the State Bank of India or any of its subsidiaries or in any Nationalized Bank or the Naga] and State Cooperative Bank outside the municipal area.
Provided further that all moneys on account of the Municipal Fund of a municipality shall be deposited in one bank account only:
284
Provided further that all moneys on account of the Municipal Fund of a Municipality may be transferred from one bank to another bank through a resolution passed in this behalf by a Municipality in the prescribed manner.
86. Application of Municipal Fund:
(1) All moneys credited to the Municipal Fund, from time to time shall be applied for payment of all sums, charges and costs necessary for carrying out the purposes of this Act and the rules and regulations made thereunder or for which payment is duly directed, sanctioned or required by or under any of the provisions of this Act.
(2) Such moneys shall likewise be applied in payment of all sums, payable out of the Municipal Fund under any other enactment for the time being in force.
(3) Notwithstanding anything contained in this Act, such moneys may also be applied in payment of all sums, charges and costs on all acts and things which are likely to promote the safety, health welfare, or convenience of the inhabitants of the municipal area, or the expenditure whereon may be declared by the Municipality, with the sanction of the Government, to be an appropriate charge on the Municipal Fund.
(4) No expenditure out of the Municipal Fund shall be incurred by any Municipality beyond the municipal area of such Municipality;
Provided that the Municipality may, with the approval of the Government, incur expenditure beyond the Municipal area of the Municipality for the execution of projects or for creation of physical assets outside the limits of such municipal area as well as for the operation and maintenance thereof for carrying out the purposes of this Act.
87. Payment not to be made unless covered by budget-grant:
No payment of any sum shall be made out of the Municipal Fund unless such expenditure is covered by the current budget grant and a sufficient balance of such budget-grant is still available notwithstanding any reduction or transfer thereof, which may have been made under the provisions of this Act.
Provided that the provisions of this section shall not apply to the payments made in the following classes of cases, namely:-
(a) Refund to taxes and other moneys, which are authorised under this Act;
(b) Refund of securities and call deposits to contractors or other persons;
(c) Sums payable in any of the following circumstances, namely 285
(d) under the orders of the Government on the failure of the Municipality to take any action as required by the Government;
or
(i) under any other enactment for the time being in force; or
(ii) under a decree or order of a civil or criminal court passed against the Municipality; or
(iii) under a compromise of any claim, suit or other legal proceedings;
or
(iv) on account of costs incurred in taking immediate action under section 63 by the Chairperson in the case of Municipal Council or Town council as the case may be;
(d) temporary payment for works urgently required by the government in the public interests;
(e) sums payable as compensation under this Act or the rules made thereunder;
(f) Expenses incurred by the Municipality on special measures, if any taken on the outbreak of dangerous diseases; and
(g) amount payable to the government by way of audit fee, if any
88. Power of Government to direct use of Municipal Fund for a particular purpose,- Notwithstanding anything contained in this Act, the Government may require a Municipality to earmark a particular portion of the Municipal Fund of the Municipality or a particular grant of a part thereof, or any item of receipt under any head or any percentage thereof, or any share of tax receivable by the Municipality under other law for the time being in force, or any part thereof to be utilised exclusively for any specified: purpose and it shall be mandatory on the part of the municipality to do so.
89. Investment of surplus moneys,-
(1) Surplus moneys standing at the credit of the Municipal Fund, which cannot immediately or at an early date be applied for the purposes specified in section 87, shall be invested in the prescribed manner:
Provided that adequate safeguards, as may be prescribed, shall be followed against the unproductive and speculative investments.
(2) The loss, if any, arising from such investments, shall be debited to the Municipal Fund.
286
90. Constitution of Special Funds,-
(1) Notwithstanding anything contained in Section 85, the Municipality may, with the prior approval of the Government, constitute such special fund or funds, as may be necessary for the purposes of this Act.
(2) The constitution and disposal of such funds shall be made in such manner, as may be prescribed.
91. Operation of bank accounts, Save as otherwise provided in this Act, no payment shall be made from the bank account referredtoinsection 86 out of the Municipal Fund, except on cheque signed by,-
(a) in the case of Municipal Council,-
(i) the Chairperson or if so authorised by the Chairperson, the Deputy Chairperson or an elected member, as the case may be; and
(ii) The Executive Officer; and
(b) In the case of Town Council,- Chairperson, or if so authorised by the Chairperson, the Deputy Chairperson or an elected member, as the case maybe, and
(ii) The Executive Officer
92. Duty of persons signing the cheque, Before a cheque is signed in accordance with the provisions of section 91 or a bill signed for payment of any amount from the bank account,-
(a) In the case of the Municipal Fund of a Municipal Council,-
(i) The Chairperson or when so authorised under clause (a) of section 91, the Deputy Chairperson or an elected members, as the case maybe; and
(ii) The Executive Officer; and
(b) in the case of Municipal fund of Town Council,- The Chairperson or when so authorised under clause (b) of section 91, the Deputy Chairperson or an elected member, as the case may be; and
(ii) The Executive Officer Shall satisfy themselves that the sum for which the cheque is drawn or which is specified for payment in the bill, as the case may be, is either,- 287
(i) Required for the purpose or work specifically sanctioned by the appropriate authority; or
(ii) required for payment referred to, or specified, in section 87 or section 88 as the case may be.
Chapter -II Borrowing
93. Power to raise loan by issue of debentures,—
(1) As may be authorised by notification, Municipal Council or Town Council may, by passing a resolution in this behalf, raise a loan, by the issue of debentures or otherwise on the security of any immovable property vested in it or proposed to be acquired by it or any of the taxes, rates, ceases, fees and charges levied under this Act, for any sum of money, which may be required,-
(a) For acquiring any land, which it has power to acquire;
(b) For erecting any building, which it has power to erect;
(c) For the execution of any permanent work, the provision of any plant, or the doing of any other thing, which it has power to execute, provide or do, if the cost of carrying out the purpose in question is required to be spread over a term of years;
(d) for payment of debt due to the Government;
(e) For repaying any loan previously raised under this Act or any other Act previously in force; or
(f) for any other purpose for which the Municipal Council or the Town Council as the case may be, is by virtue of this Act or any other law for the time being in force, authorised to borrow:
Provided that, -
(i) no loan shall be raised without the prior approval of the Government; and
(ii) The amount of loan, the rate of interest to be paid for such loan and the terms and conditions, including the date of floatation, the time and method or repayment, shall be subject to the approval of the Government.
288
(2) When any sum of money has been borrowed under sub-section (1), no portion of any sum of money borrowed for the purposes referred to in clause (c) of sub-section (1), shall be applied to the payment of salary and allowances to any officers or the Municipal Council or the Town Council, as the case may be, other than those exclusively employed in connection with the carrying out of that purpose.
(3) The loan raised under sub-section (1), shall not be spent on purchase of vehicles and contingent expenditure unless specially provided for in the concerned scheme or project.
94. Form and effect of debentures,— All debentures issued under this Chapter shall,
(a) Be in such form, as the Municipal Council or the Town Council, as the case may be, may, with the previous sanction of the Government, determine; and
(b) be transferable in such manner, as shall be expressed therein.
95. Constitution and investment of sinking Funds,—
(1) Municipal Council or a town Council, as the case may be, authorised under sub-section (1) of section 93, shall constitute sinking Funds for the repayment of moneys borrowed on debentures issued and shall pay every year into such Sinking Funds such sum, as will be sufficient for the repayment within the period fixed for the loan of all moneys borrowed on the debentures issued.
(2) All moneys paid into the Sinking Funds shall, as soon as possible be invested by the Chief Officer, under the directions of the Municipality, in public securities in the prescribed manner.
(3) All dividends and other sums received in respect of any such investment shall, as soon as possible after receipt be paid into the Sinking Funds and invested in the manner laid down in sub-section (2)