Section 400(1) in The M.P. Municipal Corporation Act, 1956
(1)The Commissioner may on behalf of the Corporation-(a)institute, defend or withdraw from legal proceedings under this Act, or under any rule or bye-law made thereunder or any other enactment for the time being in force;(b)compound any offence under this Act or under any rule or bye-law made thereunder and charge such fees for compounding of offence as may be prescribed [by bye-laws] [Inserted by M.P. Act No. 13 of 1961.] by the Corporation;(c)admit, compromise or withdraw any claim made under this Act or under any other enactment for the time being in force; and(d)obtain such legal advice and assistance as he may from time to time think it necessary or expedient to obtain, for any of the purposes referred to in the foregoing clauses of this section, or for securing the lawful exercise or discharge of any power or duly vesting in or imposed upon the Corporation, the [Mayor-in-Council] [Substituted by M.P. Act No. 20 of 1998.] or any municipal officer or servant ;Provided that the Commissioner shall not admit, compromise or withdraw any claim in a suit in which the whole amount claimed exceeds five hundred rupees without the previous sanction of the [Mayor-in-Council] [Substituted by M.P. Act No. 20 of 1998.], or where the total amount claimed exceeds two thousands rupees, without the previous sanction of the Corporation.