(1) No member, officer or servant appointed or employed under this Act shall in any way be interested directly or indirectly in any contract made with a Board.
(2) If any such officer or servant is so interested or under colour of this office or employment accepts any fee or reward whatsoever other than his proper salary and allowances, the Board or, in the case of officers whose appointment is subject to the approval of the Government or of any Government officer, the Government may declare that he shall be incapable of holding or continuing in any office or employment under this Act.
(3) Nothing in this section shall bar a criminal prosecution under section 75.
Saving of the Local Authorities Loans Act, 1352 F.
Mode of making contracts.
Improper interest in contracts.
[Act No.I of 1956] 45
Explanation:— A person shall not by reason only of being a shareholder in, or a member of, any incorporated or registered company, be deemed to be interested in any contract entered into between the company and the Board, but he shall not take part in any proceedings of the Board relating to any such contract.
75. If, any member, officer or servant of a Board is directly or indirectly interested in any contract made with such Board, he shall be deemed to have committed an offence under section 168 of the Indian Penal Code.
76. No suit shall be maintainable against any Board or any member, officer or servant thereof or any person acting under the direction of any such Board, member, officer or servant in respect of anything lawfully and in good faith and with due care and attention done under this Act or any rule, or bye-law made thereunder.
77. No suit shall be instituted against any Board or any member, officer or servant thereof or any person acting under the direction of any such Board, member, officer or servant for anything done or purporting to be done under this Act, until the expiration of two months next after a notice in writing, stating the cause of action, the name and place of abode of the intending plaintiff and the relief which he claims. Such notice shall be in the case of a Board delivered or left at its office in the case of any such member, officer, servant or person as is aforesaid, delivered to him or left at his office or usual place of abode; and the plaint shall contain a statement that such notice has been so delivered or left.