10. (1) If after giving the person concerned a reasonable opportunity for showing cause the Director is satisfied that the loss, waste or misapplication of any money or property of the local authority is a direct consequence of misconduct on the part of delinquent person, or gross neglect on his part or that the said person being a party to making, or authorising to making of the illegal payment, the Director, the Director, notwithstanding anything contained in any law for the time being in force, may, by order in writing direct such person to pay to the local authority before a specified date the amount together with interest there on, as may be found just and equitable to reimburse the local authority for such loss, waste or misapplication of its money or property:
Provided firstly, that no order of surcharge shall made under this Act against any Principle officer, member or servant of any local authority after the expiry of ten years from the occurrence of such loss, waste or misapplication of money or property or expiry of six years from the date of his ceasing to be a Principle officer, member or servant of the local authority whichever is later;
Provided secondly, that in the case of loss, waste or misapplication of money or property occurring as a result of a resolution of a local authority or of any of its committees or sub-committees, the amount of the loss to be recovered shall be divided equally among all members including office bearers who are reported in the minutes of the local authority or of its committees or sub-committees as having voted for or who remained neutral in respect of such resolution;
Provided, thirdly, that In the case of superseded local bodies, if loss waste or misapplication of money or property is due to any action of the Administrator or officer in charge who is a Government servant, the matter shall be reported by the Director to the State Government for necessary action ;
Provided, fourthly, that the liability of a legal representative of a deceased delinquent person shall be to the extent of the property of the deceased which has come to the hands of such legal representative.
(2) If the person to whom a copy of the decision is furnished under sub-section (1) refuses to receive it, he shall be deemed to have duly received it on the day on which the copy was refused by him.
(3) If he is not available at the time of final order its gist along with the operative portion shall be sent to him at his last known address by registered post or shall be affixed at his last known residence and shall be proclaimed by beat of drum in the locality and this will give rise to a presumption of due service.