Sri Lanka Consolidated Acts

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Village Councils Law (No. 6 of 1964) - Sect 72

Deposit and use of communal fund. [ 22, 60 of 1961. ]

49.
(1) All moneys received by a Village Council or by the Chairman of the Council on behalf of the Council, and payable to the communal fund shall, within fourteen days of the receipt thereof, be deposited by the Chairman either-
(a) in the nearest Kachcheri; or
(b) in such of the banks in Ceylon as may be selected by the Council with the sanction of the Minister,
(2) Subject to the provisions of subsection (3) of section 56B, no payment shall-
(a) where the communal fund of a Village Council is maintained in a Kachcheri, be made out of that fund, except by the Government Agent on an order of payment signed and issued by the Chairman of the Council, or by the Vice-Chairman of the Council acting under the authority of the Chairman and by an officer of the Council specially authorized by the Council for that purpose ; or
(b) where that fund is maintained in a bank, except on a cheque or an order of payment signed and issued in such manner as may be prescribed by rules which are hereby authorized to be made for the purpose under section 52.
(3) Subject to the provisions of subsection (2) of section 56B, no cheque or order for payment of moneys out of the communal fund of a Village Council shall be issued unless the expenditure to which it relates has been authorized by the Council either generally or by a resolution in that behalf.
(4) For the purpose of resolving any doubts as to the legality of any item of expenditure authorized by a resolution of a Village Council, the Chairman of the Council may refer the matter for decision through the Assistant Commissioner to the Commissioner of Local Government. The Commissioner shall communicate his decision on any such reference through the Assistant Commissioner to the Chairman.
(5) Where the Commissioner of Local Government has, on any reference made to him under subsection (4), confirmed the legality of any item of expenditure authorized by a resolution of a Village Council, the Chairman of the Council and every other member thereof shall not, notwithstanding anything to the contrary in section 48, be liable to a surcharge by the auditor under that section in respect of any payment relating to that item of expenditure.


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