Section 398(f) in Chennai City Municipal Corporation Act, 1919
(f)withdraw or compromise any claim for a sum not exceeding five-hundred rupees against any person in respect of a penalty payable under a contract entered into with such person by the commissioner, or with the approval of the [standing committee] [Substituted for 'central committee' by Tamil Nadu Act 22 of 1971.] any such claim for any sum exceeding five-hundred rupees;