Section 400 in Chennai City Municipal Corporation Act, 1919
400. Liability of commissioner and councillors for loss, waste or misapplication.
(1)The commissioner and every councilor [***] [Omitted the word 'or alderman' by section 2(2) of the Madras City Municipal (Amendment) Act, 7958 (Tamil Nadu Act XXIV of 1958).] shall be liable for the loss, waste or misapplication of any money or other property owned by or vested in the municipal 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 the council with the previous sanction of the [State Government] [The word 'Provincial Government' were substituted for the words, 'Local Government by the Adaptation Order of 1937 and the word 'State' was substituted for 'Provincial' by the Adaptation Order of 1950.] or by [the [State Government] [Inserted by section 206 of the Madras City Municipal (Amendment) Act, 1936 (Tamil Nadu Act X of 1936).].(2)Every such suit shall be commenced within three years after the date on which the cause of action arose.
