185. Power of Corporation to borrow.—(1) 1
[
2
[The Corporation]] may, in pursuance of any
resolution passed by it, borrow by way of debenture or otherwise on the security of all or any of the taxes,
rates, cesses, fees and charges authorised by or under this Act, any sums of money which may be required—
(a) for acquiring any land which it has power to acquire;
(b) for erecting any building which it has power to erect;
(c) for the execution of any permanent work, the provision of any plant, or the doing of any other
thing which it has power to execute, provide or do, if the cost of carrying out the purpose in question
ought to be spread over a term of years;
5
[(d) to pay off any debt due to the Central Government or the Government;]
1. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
2. Subs. by Act 10 of 2022, s. 2, for “A Corporation” (w.e.f. 22-5-2022).
3. The heading "Terminal taxes on goods" and sections 178 to 183 (both inclusive) omitted by the Delhi Municipal Corporation
(Amendment) Ordinance, 1993 (21 of 1993), (w.e.f. 30-1-1993).
4. The words “Taxes on motor vehicles and” omitted by Act 52 of 1964, s. 3 and the Second Schedule (w.e.f. 29-12-1964).
5. Subs. by Act 67 of 1993, s. 89, for clause (d) (w.e.f. 1-10-1993).
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(e) to repay a loan previously raised under this Act or any other Act previously in force; or
(f) for any other purpose for which 1
[
2
[the Corporation]] is, by virtue of this Act or any other law
for the time being in force, authorised to borrow:
Provided that—
(i) no loan shall be raised without the previous sanction of the Central Government or without
previous publication of the application for sanction under the Local Authorities Loans Act, 1914, (9 of
1914) and the rules made thereunder;
(ii) the amount of loan, the rate of interest and the terms including the date of floatation, the time
and method of the repayment and the like shall be subject to the approval of the Central Government.
(2) When any sum of money has been borrowed under sub-section (1), no portion of any sum of money
borrowed for any of the purposes referred to in clause (c) of sub-section (1) shall be applied to the payment
of salaries and allowances to any municipal officers or other municipal employees other than those
exclusively employed in connection with the carrying out of that purpose.
186. Time for repayment of money borrowed under section 185.—The time for the repayment of
any money borrowed under section 185 shall in no case exceed sixty years and the time for repayment of
any money borrowed for the purpose of discharging any previous loan shall not, except with the express
sanction of the Central Government, extend beyond the unexpired portion of the period for which such
previous loan was sanctioned.
187. Form and effect of debentures.—All debentures issued under this Chapter shall be in such form
as 1
[
2
[Corporation]] may, with the previous sanction of 3
[the Central 4
[Government]], determine and shall
be transferable in such manner as shall be therein expressed; and the right to sue in respect of the moneys
secured by any of such debentures shall vest in the holders thereof for the time being without any preference
by reason of some such debentures being prior in date to others.
188. Payment to survivors of joint payees.—When any debenture or security issued under this Act is
payable to two or more persons jointly, and either or any of them dies, then notwithstanding anything in
section 45 of the Indian Contract Act, 1872 (9 of 1872), the debenture or security shall be payable to the
survivor or survivors of such person :
Provided that nothing in this section shall affect any claim by the legal representative of a deceased
person against such survivor or survivors.
189. Receipt by joint holders for interest or dividend.—When two or more persons are joint holders
of any debenture or security issued under this Act, any one of such persons may give an effectual receipt
for any interest or dividend payable in respect of such debenture or security, unless notice to the contrary
has been given to 1
[
2
[the Corporation]] by the other of such persons.
190. Maintenance and investment of sinking funds.—(1) 5
[
6
[The Corporation]] shall maintain
sinking funds for the repayment of money borrowed on debentures issued and shall pay every year into
such sinking funds such sum as will be sufficient for the repayment within the period fixed for the loan of
all moneys borrowed on the debentures issued.
(2) All money paid into the sinking funds shall, as soon as possible, be invested by the Commissioner
in public securities and every such investment shall be reported by the Commissioner to 1
[
2
[the
Corporation]] within fifteen days.
(3) All dividends and other sums received in respect of any such investment shall, as soon as possible
after receipt, be paid into the sinking funds and invested in the manner laid down in sub-section (2).
1. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
2. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
3. Subs. by Delhi Act 12 of 2011, s. 2, for “Central Government” (w.e.f. 13-1-2012).
4. Subs. by Act 10 of 2022, s. 2, for “Government” (w.e.f. 13-1-2012).
5. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
6. Subs. by Act 10 of 2022, s. 2, for “A Corporation” (w.e.f. 22-5-2022).
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(4) When any part of a sinking fund is invested in Delhi municipal debentures, or is applied in paying
off any part of a loan before the period fixed for repayment, the interest which would otherwise have been
payable on such debentures or on such part of the loan shall be paid into the sinking fund and invested in
the manner laid down in sub-section (2).
(5) Any investment made under this section may, subject to the provisions of sub-section (2), be varied
or transposed.
191. Application of sinking funds.—A sinking fund or any part thereof shall be applied in or towards
the discharge of the loan or a part of the loan for which such fund was created, and until such loan or part
is wholly discharged shall not be applied for any other purpose:
Provided that when any loan or part thereof has been consolidated under section 193, the Commissioner
shall transfer to the sinking fund of the consolidated loan such part of the sinking funds of the original loans
as may be proportionate to the amount of the original loans incorporated in the consolidated loan.
192. Annual statement by Commissioner.—(1) The Commissioner shall, at the end of every year,
submit to Corporation a statement showing—
(a) the amount which has been invested during the year under section 190;
(b) the date of the last investment made previous to the submission of the statement;
(c) the aggregate amount of the securities then in his hands; and
(d) the aggregate amount which has up to the date of the statement been applied under section 191,
in or towards discharging loans.
(2) Every such statement shall be published in the Official Gazette.
193. Power of Corporation to consolidate loans.—(1) Notwithstanding anything to the contrary
contained in this Chapter, 1
[
2
[the Corporation]] may consolidate all or any of its loans and for that purpose
may invite tenders for a new loan (to be called “the Delhi Municipal consolidated loan, 19——”) and invite
holders of the municipal debentures to exchange their debentures for scrips of such loan.
(2) The terms of any such consolidated loan and the form of its scrip and the rates at which exchange
into such consolidated loan shall be permitted shall be subject to the prior approval of the Central
Government].
(3) The period for the exchanging of any such consolidated loan shall not, without the sanction of the
Central Government, extend beyond the farthest date within which any of the loans to be consolidated
would otherwise be repayable.
(4) 3
[
4
[The Corporation]] shall provide for the repayment of any such consolidated loan by a sinking
fund in the manner laid down in section 190, having regard to the amount transferred to such sinking fund
under section 191.
194. Priority of payments for interest and repayment of loans over other payments.—All
payments due from 1
[
2
[the Corporation]] for interest on and repayment of loans shall be made in priority to
all other payments due from 1
[
2
[the Corporation]].
1. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
2. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
3. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
4. Subs. by Act 10 of 2022, s. 2, for “A Corporation” (w.e.f. 22-5-2022).
95
195. Attachment of Municipal Fund for recovery of money borrowed from Government.—(1) If
any money borrowed or deemed to have been borrowed by the Corporation from the 1
[Central Government
or the Government] or any interest or costs due in respect thereof be not repaid according to the conditions
of the loan, the 1
[Central Government or the Government] may attach the Municipal Fund or any part
thereof.
(2) After such attachment no person except an officer appointed in this behalf by the Central
Government shall in any way deal with the attached fund; but such officer may do all acts in respect thereof
which any municipal authority, officer or other employee might have done if such attachment had not taken
place, and may apply the proceeds in satisfaction of the arrears and of all interests and costs due in respect
thereof and of all expenses caused by the attachment and subsequent proceedings:
Provided that no such attachment shall defeat or prejudice any debt for which the fund was previously
charged in accordance with law; and all such prior charges shall be paid out of the proceeds of the fund
before any part of the proceeds is applied to the satisfaction of the debt due to the Central Government.
196. Power to make regulations.—2
[
3
[The Corporation]] may make regulations to carry out the
purpose of this Chapter including, in particular, the issue of duplicates in case of loss of debentures by theft,
destruction or otherwise, and renewal of debentures on payment of fees prescribed in this behalf by such
regulations.