NDMC ACT (chapter 9)

THE NEW DELHI MUNICIPAL COUNCIL ACT, 1994

CHAPTER - X

PROPERTY AND CONTRACTS

PROPERTY

Acquisition of property.

137.

The Council shall, for the purpose of this Act, have power to acquire and hold movable and immovable property, or any interest therein.

Acquisition of immovable property by agreement.

138.

Whenever the Council decides to acquire any immovable property for the purpose of this Act, the Chairperson shall acquire such property on behalf of the Council by agreement on such terms and at such price as may be approved by the Council.

Procedure when immovable property cannot be acquired by agreement.

139.

Whenever the Chairperson is unable to acquire any immovable property under section 138 by agreement, the Central Government may at the request of the Chairperson procure the acquisition thereof under the provisions of the Land Acquisition Act, 1894 (1 of 1894), and on payment by the Council of the compensation awarded under that Act and of the charges incurred by that Government in connection with the proceedings, the land shall vest in the Council.

Disposal of movable property.

140.

(1)

With respect to the disposal of movable property belonging to Council the Chairperson may, in his discretion, dispose of by sale or otherwise, any movable property belonging to the Council not exceeding in value in each instance one thousand rupees, or such higher amount as the Council may prescribe, or let out on hire any movable property or grant a lease of any immovable property belonging to the Council including any right or gathering and taking fruits and the like, for a period not exceeding one year at a time.

(2)

In cases not covered by sub-section (1), the Chairperson may, with the sanction of the Council, lease, sell, let out on hire on otherwise transfer any movable property belonging to the Council.

Disposal of immovable property.

141.

(1)	The Chairperson may, with the sanction of the Council, lease, let out on hire or otherwise transfer any immovable property belonging to the Council.
(2)	The consideration for which any immovable property may be sold, leased or otherwise transferred shall not be less than the value at which such immovable property could be sold, leased or otherwise transferred in normal and fair completion.
(3)	The sanction of Council under section 140 or this section may be given either generally for any class of cases or specially for any particular case.
(4)	Subject to any conditions or limitation that may be specified in any other provisions of this Act the foregoing provisions of section 140 and this section shall apply to every disposal of property belonging to the Council made under, or for any purpose of this Act.
(5)	Every case of disposal of property under sub-section (1) of section 140 shall be reported by the Chairperson without delay to the Council.

CONTRACTS

Contracts by the Council.

142.

Subject to the provisions of sections 143 and 144 the Council shall be competent to enter into and perform any contract necessary for the purposes of this Act.

Proceeding for making contracts.

143.

With respect to the making of contracts, the following provisions shall have effect, namely:-

(a)	every such contract shall be made on behalf of the Council by the Chairperson;
(b)	no such contract, for any purpose which in accordance with any provision of this Act the Chairperson may not carry out without the approval or sanction of the Council shall be made by him until and unless such approval or sanction has been duly obtained.
(c)	no contract which will involve an expenditure exceeding ten lakh rupees or such higher amount as the Central Government may from time to time, fix, shall be made by the Chairperson unless the same is previously approved by the Council; and
(d)	every contract made by the Chairperson involving an expenditure exceeding one lakh rupees but not exceeding ten lakh rupees or such higher amount as may be fixed under clause (c) shall be reported by him, within one month after the same has been made to the Council.

Mode of executing contracts.

144.

(1)	The mode of executing contracts under this Act shall be prescribed by bye-laws made in this behalf.
(2)	No contract which is not made in accordance with provisions of this Act and the byelaws made thereunder shall be binding on the Council.

NOTES ON CLAUSES

These clauses relate to property and contract. The Council shall have power to acquire and hold movable and immovable property or any interest therein. The Council shall also be competent to enter into the perform any contract.