(1)Subject to the other provisions of this Act, the Municipality may enter into and execute all such contracts as it may consider necessary or expedient under, or for any of the purposes of this Act.(2)With respect to any contract, the following provisions shall have effect, namely:-(a)every contract shall, -(i)in the case of a Municipal Corporation, be signed and executed on behalf of the Municipal Corporation, by the Mayor and the Commissioner;(ii)in the case of a Municipal Corporation or a Nagar Panchayat, be signed and executed on behalf of the Municipal Corporation or the Nagar Panchayat, as the case may be, by the President and the Executive Officer;(b)no such contract, for any purpose, shall be entered into and executed without the prior sanction of the competent sanctioning authority; and(c)every contract, so executed shall be reported, -(i)in the case of Municipal Corporation by the Commissioner, to the Municipal Corporation;(ii)in the case of a Municipal Council or a Nagar Panchayat, by the Executive Officer, to the Municipal Council or the Nagar Panchayat as the case may be,within fifteen days of the execution of such contract.(3)Notwithstanding anything contained in sub-section (2), no contract involving sale, mortgage, gift or lease of any immovable property, other than the lease by the public auction for a period not exceeding five years, shall be made unless it has been sanctioned by the Government.(4)Every contract shall be made in such manner and in such form, as may be prescribed :Provided that every contract involving a sum exceeding rupees one hundred or affecting immovable property, shall be in writing and shall be sealed with the common seal of the Municipality.(5)The common seal of the Municipality shall remain in the custody of the Chief Officer of the Municipality, and shall not be affixed to any contract or other instruments, except in the presence of the Chief Officer.(6)No contract executed otherwise than as provided in this section, shall be binding on the Municipality.
