Section 499. Liability of Commissioner, etc., for loss, waste or mis-application of Municipal Fund or property

(1) 1 [Every councillor and every person referred to in clause (b) of sub-section (3) of section 3, the Commissioner,] 2 *** and every municipal officer and other municipal employee shall be liable for the loss, waste or misapplication of any money or other property owned by or vested in Corporation, if such loss, waste or misapplication is a direct consequence of his neglect or misconduct and a suit for compensation may be instituted against him by 3[4[the Corporation]] with the previous sanction of the 5 *** 6[Central Government] or by the 5 *** 6[CentralGovernment]. (2) Every such suit shall be instituted within three years after the date on which the cause of action arose.