Section 9 in The Chennai Corporation Servants Conduct Rules, 1968
9. Insolvency and habitual indebtedness.
- A Corporation servant shall endeavor to avoid habitual indebtedness or insolvency. If a Corporation servant is adjudged or declared insolvent, or has incurred debts aggregating a sum which, in ordinary circumstances, he could not repay within a period of two years or if a part of his salary is frequently attached for a period of two years, or is attached for a sum which, in ordinary circumstances, he could not repay within a period of two years, he shall be presumed to have contravened this rule. But, he shall not be so deemed if he proves that insolvency or indebtedness is the result of circumstances, which, with the exercise of ordinary diligence, he could not have foreseen or over which he had no control, and had not proceeded from extravagant or dissipated habits. A Corporation servant who becomes the subject of legal proceedings for insolvency shall forthwith report the full facts to the head of the department.
