Section 401(4) in The M.P. Municipal Corporation Act, 1956
(4)If the defendant in any such suit is the Commissioner or any other Corporation officer or servant, payment of any sum or part thereof payable by him in or in consequence of the suit may, with the sanction of the [Mayor-in-Council] [Substituted by M.P. Act No. 20 of 1998.], be made from the Municipal Fund.