Section 243(1) in The Himachal Pradesh Municipal Corporation Act, 1994
(1)The municipality may make compensation out of the municipal fund to any person sustaining any damage by reason of the exercise of any of the powers vested in the municipality, its employees, under this Act, and shall make such compensation where the damage was caused by the negligence of the municipality, its employees and the person sustaining the damage was not himself in default in the matter in respect of which the power was exercised.