Amendment status not verified — confirm the current text below against the official source.
Provisions relating to contracts and tenders.— (1) In the case— (a) of every contract which will involve expenditure not covered by a budget grant, 338 Expression “of not less than two-thirds” omitted vide Amendment Act 14 of 2022. 339 Proviso substituted vide Amendment Act 14 of 2022. Orignal proviso read as under : “Provided that in respect of immovable property of a Council where the period has already expired and the leases are not renewed, the Council may renew the leases of such immovable properties at such rate of rental which shall not be less than Rs. 12/- per sq. metre per month] in case of commercial establishment and shall not be less than Rs. 5/- per sq. metre per month in case of residential establishment, the reasonability of which shall be decided by the Director before issuing permission for extending the lease period.;” 72 (b) of every contract the performance of which cannot be completed within the official year current at the date of the contract, the sanction of the Council by a resolution passed at an ordinary meeting shall be necessary. (2) (a) Every contract under or for any purpose of this Act shall be made on behalf of the Council by the Chief Officer; (b) No such contract which the Chief Officer is not empowered by this Act to carry out without the approval or sanction of some other municipal authority shall be made by him until or unless such approval or sanction has first of all been duly given; (c) 340[No contract which involve such amount of expenditure as notified by the Government from time to time], shall be made by the Chief Officer of ‘A’ Class, ‘B’ Class and ‘C’ Class Council, respectively, unless otherwise authorised in this behalf by the Council, except with the approval or sanction of the Council; (d) Every contract made by the Chief Officer involving an expenditure exceeding 75 per cent of the limits in clause (c) but not exceeding those limits shall be reported by him within fifteen days after the same has been made to the council; (e) The foregoing provisions of this section shall apply to every variation or discharge of a contract to the same extent as to an original contract. (3) Every contract entered into by a Chief Officer on behalf of a Council shall be entered into in such manner and form as would bind such Chief Officer if such contract were on his own behalf, and may in the like manner and form be varied or discharged: Provided that — (a) where any such contract, if entered into by a Chief Officer, would require to be under seal, the same shall be sealed with the common seal of the Council; (b) every contract for the execution of any work or for the supply or any materials or goods which will involve an expenditure 341[exceeding such amount as may be notified by the Government from time to time] shall be in writing and shall be sealed with the common seal of the Council and shall specify the work to be done or the materials or goods to be supplied, as the case may be, the price to be paid for such work, materials or goods and in the case of a contract for work, the time or times within which the same or specified portions thereof shall be completed. (4) The common seal of the Council shall not be affixed to any contract or other instrument except in the presence of two members of the Standing Committee who shall attach their signatures to the contract or instrument in token that the same was sealed in their presence. The signatures of the said members shall be distinct from the signatures of any witnesses to the execution of any such contract or instrument. 340 Substituted by the Amendment Act 7 of 1998. 341 Substituted by the Amendment Act 7 of 1998. 73 (5) A contract not executed in the manner provided in this section shall not be binding on the Council. (6) Except as is otherwise provided in sub-section (2), a Chief Officer shall before entering into any contract for the execution of any work or the supply of any materials or goods which will involve 342[an expenditure exceeding the amount as notified by the Government from time to time] give notice by advertisement in a local newspaper, inviting tenders for such contract: Provided that at least clear seven days shall be allowed to elapse between the date of the publication of the advertisement in the newspaper inviting tenders and the last date fixed for the receipt of tenders by the Chief Officer. (7) The Chief Officer shall not be bound to accept any tender which may be made in pursuance of such notice, but may, with the approval of the Council, accept any of the tenders so made which appears to him, upon a view of all the circumstances, to be the most advantageous or may reject all the tenders submitted to him. (8) A Council, after obtaining the approval of the 343[Director], may authorise the Chief Officer, for reasons which shall be recorded in its proceedings to enter into a contract without inviting tenders as herein provided or without accepting any tenders which he may receive after having invited them. (9) A Chief Officer shall require security for the due performance of every contract into which he enters under sub-section (6) and may, in his discretion, require security for the due performance of any other contract into which he enters under this Act.