Section 326(2) in The U.P. Municipalities Act, 1916
(2)If the [Municipality] [Substituted by U.P. Act No. 12 of 1994.], member, officer or servant shall, before action is commenced, have tendered sufficient amends to the plaintiff, the plaintiff shall not recover any sum in excess of the amount so tendered, shall also pay all costs incurred by the defendant after such tender.