Section 11(1) in The M.P. Sthaniya Nidhi Sampariksha Adhiniyam, 1973
(1)If after giving the person concerned a reasonable opportunity for showing cause to the contrary, the Director is satisfied that the loss, waste or misapplication of any money or other properly of the local authority, is a direct consequence of misconduct on the part of the delinquent person, or gross neglect on his part, or that the said person being a party to making, or authorising the making of the illegal payment, the Director shall, by order in writing direct, such person to pay to the local authority concerned before a specified dale the amount, together with interest thereon, as may be found just and equitable, to reimburse the local authority for such loss, waste or misapplication of its money or property :Provided that no order of charge shall be made under this Act-(i)in respect of any item included, or which ought to have been included in, but was omitted from, any account or any period prior to five years of the date, when the report under Section 8 was sent to the Principal Officer of the local authority, or of the date on which it comes to the notice of the Director, whichever is earlier;(ii)[x x x] [Omitted by M.P. Act No. 14 of 1978.]Provided further that the liability of a legal representatives of a deceased delinquent person shall be to the extent of the property of the deceased which has come to the hands of such legal representative.
