375. Liability for loss, waste, or misapplication of property.
(1)Every Chairperson, Vice-Chairperson, [* * *] [Omitted vide Orissa Act No. 11 of 1994 w.e.f. 31.5.1994.] Councillor, officer or servant of a Municipality, including a Government servant whose services are lent to the [Municipality] [Substituted vide Orissa Act No. 11 of 1994 w.e.f. 31.5.1994.] shall be liable for the loss, waste or misapplication of any money or other property owned by or vested in the [Municipality] [Substituted vide Orissa Act No. 11 of 1994 w.e.f. 31.5.1994.], if such loss, waste or misapplication is a direct consequence of any illegal act, omission, neglect or misconduct on his part, and a suit for compensation may be instituted against him any Court of competent jurisdiction by the [Municipality] [Substituted vide Orissa Act No. 11 of 1994 w.e.f. 31.5.1994.] with the previous sanction of the State Government or by the State Government.Every such suit shall be instituted within three years after the date on which cause of action arose.
