Section 81. Surcharge

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.