Section 96 · Liability of Councillors, officers and servants for loss, or damage

(1) If any Councillor or an officer or servant of a Council makes or directs to be made any payment or application of any money or other property belonging to or under the control of such Council to any purpose not authorised by or under this Act, or assents to, or concurs with or participates in, any affirmative vote or proceeding relating thereto, he shall be individually liable to such Council for the loss or damage caused thereby, unless he proves that he acted in good faith and with due care and attention. (2) Every Councillor or officer or servant of a Council shall be liable to such Council for the loss of any money or the loss of, or damage to, other property belonging to it or under its control, if such loss or damage is a direct consequence of his negligence or misconduct. (3) No suit shall be instituted by a council against any Councillor thereof under sub-section (1) or sub-section (2), except with the previous sanction of the State Government. (4) Notwithstanding anything contained in sub-section (3), a suit under sub-section (1) or sub-section (2) may be instituted by the State Government. (5) No suit shall be instituted under this section after the expiration of six years from the date when the cause of action arose.