Section 408: Liability of Chairperson, etc., for loss, waste or misapplication of New Delhi Municipal Fund or property

(1) Every member, Chairperson, and every municipal officer and other municipal employee shall be liable for the loss, waste, or misapplication of any money or other property owned by or vested in the Council, if such loss, waste or misapplication is a direct consequence of his neglect or misconduct and a suit for compensation may be instituted against him by the Council with the previous sanction of the Central Government or by the Government.

(2) Every such suit shall be instituted within three years after the date on which the cause of action arose.

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 14 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the section 408

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