Section 117 in The Gujarat Provincial Municipal Corporations Act, 1949
117. Attachment of Municipal Fund or Transport Fund in default of repayment of loan.
(1)If any money borrowed by the Corporation or any interest or costs due in respect thereof is or are not repaid according to the conditions of the loan, the [State] [This words was substituted for the word 'Provincial' by the adaptation of Laws Order, 1950.] Government, if it has itself given the loan, may and in other cases shall, on the application of the lender, attach the Municipal Fund or the Transport Fund or a portion of the Municipal Fund or the Transport Fund.(2)After such attachment no person, except an officer appointed in this behalf by the [State] [This words was substituted for the word 'Provincial' by the adaptation of Laws Order, 1950.] Government, shall in any way deal with the attached Fund or portion thereof; but such officer may do all acts in respect thereof which any municipal authority, officer or servant might have done if such attachment had not taken place and may apply the proceeds in satisfaction of the arrears and of all interest and costs due in respect thereof and of all expenses caused by the attachment and subsequent proceedings:Provided that no such attachment shall defeat or prejudice any debt for which the Fund or portion thereof attached was previously pledged in accordance with law, and all such prior charges shall be paid out of the proceeds of the Fund or portion thereof before any part of the proceeds is applied to the satisfaction of the liability in respect of which such attachment is made.
