Section 313(1) in The U.P. Municipalities Act, 1916
(1)When a person, by reason of Iris receiving, or being entitled to receive, the rent of immovable property as trustee or agent of a person or society would, under this Act, be found to discharge an obligation imposed by this Act on the owner of the property and for the discharge of which money is required, he shall not be bound to discharge the obligation unless, he has, or but for his own improper act or default might have had, in his hands funds belonging to the owner sufficient for the purpose.