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(1) Notwithstanding anything contained in the Code of Civil Procedure, 1908, every suit instituted under this Act shall be instituted before the Sarpanch of the Circle Panchayat of the circle in which the defendant or any of the defendants, where they are more than one, ordinarily resides or carries on business at the time of the institution of the suit irrespective of the place where the cause of action arose. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1898, every criminal case instituted under this Act shall be instituted before the Sarpanch of the Circle Panchayat of the circle in which the offence is committed. When a vacancy occurs by the death, resignation or removal of any Pradhan or Member of Gaon Panchayat, or of a Panch of a Circle Panchayat and the vacancy thus caused has to be filled by election, such election shall be conducted in the manner prescribed in this chapter.