(1)The Municipality may compound or compromise, in respect of any suit instituted by or against it or in respect, of any claim or demand arising out of any contract entered into by it under this Act, for such sum of money or other compensation as it shall deem sufficient:Provided that, if any sanction in the making of any contract is required by this Act, the like sanction shall be obtained for compounding or compromising any claim or demand arising out of such contract.(2)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 it, its officers and servants under this Act.(3)The municipal fund shall be liable to pay the expenses of any civil proceeding prosecuted or defended on behalf of the Municipality.
