(1)Every person shall be liable for the loss, waste, or misapplication of any money or other property signed by or vested in the Municipality, if such loss, waste or misapplication is a direct consequence of his neglect or misconduct in the performance of his duty and he may, after being given an opportunity, by notice served in the manner provided for the service of summons in the Code of Civil Procedure, 1908 (Act 5 of 1908), to show-cause by written or oral representation why he should not be required to make good the loss, by order, be surcharged with the value of such property or the amount of such money, -(a)by the Director, Local Government, if the loss, waste or misapplication pertains to any money or other property owned or vested in a Municipal Corporation or a Class 'A' Municipal Council; and(b)by the Regional Deputy Director, Local Government, if the loss, waste or misapplication pertains to any money or other property owned or vested in a Class 'B' or a Class 'C' Municipal Council or a Nagar Panchayat,and if the amount is not paid within one month from the expiry of the period of appeal specified in sub-section (2), it shall be recoverable as an arrears of tax leviable under this Act.
