The Cantonments Act,2006
Section 123. Application of cantonment fund, cantonment development fund and property
The cantonment fund, cantonment development fund and all property vested in a Board shall be applied for the purposes, whether express or implied, for which, by or under this Act or any other law for the time being in force, powers are conferred or duties or obligations are imposed upon the Board: Provided that the Board shall not incur any expenditure for acquiring or renting land beyond the limits of the cantonment or for constructing any work beyond such limits except-
(a) with the sanction of the Central Government, and
(b) on such terms and conditions as the Central Government may impose: Provided further that priority shall be given in the order hereinafter set forth to the following liabilities and obligations of a Board, that is to say,-
(a) to the liabilities and obligations arising from a trust legally imposed upon or accepted by the Board;
(b) to the repayment of, and the payment of interest on, any loan incurred under the provisions of the Local Authorities Loan Act,1914 or under the provisions of this Act.
(c) to the payment of establishment charges;
(d) to the payment of any sum the payment of which is expressly required by the provisions of this Act or any rule or bye- law made thereunder.
