87. Payment not be made unless covered by budget-grant.
- No payment of any sum shall be made out of the Municipal Fund unless such expenditure is covered by the current budget grant and a sufficient balance of such budget-grant is still available notwithstanding any reduction or transfer thereof, which may have been made under the provisions of this Act:Provided that the provisions of this section shall not apply to the payments made in the following classes of cases, namely:-(a)Refund to taxes and other moneys, which are authorised under this Act;(b)Refund of securities and call deposits to contractors or other persons;(c)Sums payable in any of the following circumstances, namely, -(d)Under the orders of the Government on the failure of the Municipality to take any action as required by the Government; Or(i)Under any other enactment for the time being in force; or(ii)Under a decree or order of a civil or criminal court passed against the Municipality; or(iii)Under a compromise of any claim, suit or other legal proceedings; or(iv)On account of costs incurred in taking immediate action under section 63 by the Chairperson in the case of a Municipal Council or Town Council as the case may be;(e)Temporary payment for works urgently required by the government in the public interests;(f)Sums payable as compensation under this Act or the rules made thereunder;(g)Expenses incurred by the Municipality on special measures, if any taken on the outbreak of dangerous diseases; and(h)Amount payable to the government by way of audit fee, if any.
