Except as hereinafter provided, no payment of any sum shall be made out of the municipal fund unless the expenditure of the same is covered by a budget grant, provided that the following items shall be excepted from this prohibition, namely:--

(a) refunds of taxes and other moneys which the municipal council is authorised by this Act or the rules made thereunder to make;

(b) repayments of moneys belonging to the contractors or other persons held in deposit and of moneys collected or credited to the municipal fund by mistake;

(c) sums which the municipal council is required or empowered by this Act, to pay by way of compensation;

(d) every sum payable, --

(i) under sections 307 and 317 by order of the Deputy Commissioner or Government or Commissioner and under sections 310, 366 and 367 by order of the Government,

(ii) under a decree or order of a civil court passed against the municipal council,

(iii) under a compromise of any suit or other legal proceeding or claim;

(e) expenses incurred in the exercise of powers conferred by clause

(a) of section 88 and sections 248, 249 and 251;

(f) all contributions payable by the municipal council to the Government for the maintenance of water supply, dispensaries, schools and other institutions managed by the Government on behalf of the municipal council or on behalf of the municipal councils and any other local authority or authorities.