Liability of members, officers and servants
1[81. (1) The President and every Vice-President, every member, officer and servant of the Municipality shall be liable to surcharge for the loss, waste or misapplication of any money or property of the Municipality, if such loss, waste or misapplication is a direct consequence of his neglect or misconduct while acting as such President, Vice-President, member, officer or servant :
Provided that such liability shall cease to exist after the expiry of ten years from the occurrence of such loss, waste or misapplication or after the expiry of five years from the date on which such President, Vice-President, members, officer or servant ceases to hold his office, whichever is later.
(2) The amount of surcharge so imposed shall be recoverable as if it were an arrear of land revenue and the Collector on being satisfied that the sum is due shall proceed to recover it as such an arrear.
(3) The procedure of surcharge and the manner of the recovery of the amount involved in loss, waste or misapplication shall be such as may be prescribed.
(4) Where no surcharge proceedings are taken, the Municipality, with the previous sanction of, or on being directed by, the Prescribed Authority, may institute a suit for compensation against such person.
1[81. (1) The President and every Vice-President, every member, officer and servant of the Municipality shall be liable to surcharge for the loss, waste or misapplication of any money or property of the Municipality, if such loss, waste or misapplication is a direct consequence of his neglect or misconduct while acting as such President, Vice-President, member, officer or servant :
Provided that such liability shall cease to exist after the expiry of ten years from the occurrence of such loss, waste or misapplication or after the expiry of five years from the date on which such President, Vice-President, members, officer or servant ceases to hold his office, whichever is later.
(2) The amount of surcharge so imposed shall be recoverable as if it were an arrear of land revenue and the Collector on being satisfied that the sum is due shall proceed to recover it as such an arrear.
(3) The procedure of surcharge and the manner of the recovery of the amount involved in loss, waste or misapplication shall be such as may be prescribed.
(4) Where no surcharge proceedings are taken, the Municipality, with the previous sanction of, or on being directed by, the Prescribed Authority, may institute a suit for compensation against such person.
Source footnotes
1. Subs. by sec. 34 of U. P. Act no. 41 of 1976.आगे पढ़ें / Continue reading
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More sections of this act
Section 1 · Short title, extent and commencementSection 2 · DefinitionsSection 3 · Declaration and definition of municipalities and cities.Section 3A · Municipality for every transitional area and smaller urban areaSection 3B · Constitution and composition of Ward CommitteeSection 4 · Procedure preliminary to issue notificationSection 5 · Effect of including area in Transitional area or smaller urban areaSection 5-A · Director of Local Bodies.India Code, Government of India. Text fetched 24 Oct 2026. Source metadata reports last modification: 2025-12-02. Check the linked official text and subsequent notifications when applying a provision.