Section 164(1) in Tamil Nadu District Municipalities Act, 1920
(1)When a public street is permanently closed under section 163, the municipal council may, with the 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] dispose of the site or of so much thereof as is no longer required, in such manner as may be approved by 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], provided that due compensation is made to any person injured by such closing.