Effect of division of panchayat area.

1[118. Effect of division of panchayat area. - (1) When during the term of office of the members of a Grama Panchayat any local area comprised within the limits of a panchayat area ceases to b e a panchayat area, and is declared as constituting two or more new panchayat areas by virtue of notification under section 4, notwithstanding anything contained 98 in this Act, with effect from the date on which such notification is issued (hereinafter in th is section referred to as the specified date) the following consequences shall ensue, namely: - (a) the Grama Panchayat constituted in respect of such local area (hereinafter referred to as the existing Grama Panchayat) shall cease to exist and all the members of such Grama Panchayat shall vacate office; (b) there shall be constituted for the new panchayat areas, Grama Panchayats (hereinafter in this section referred to as interim Grama Panchayats) con sisting of members nominated by the Deputy Commissioner and such members shall as far as may be practicable be persons who are the members of the existing Grama Panchayat: Provided that if as on the specified date there were no elected members in the exis ting Grama Panchayat the Deputy Commissioner may by order appoint such person (hereinafter referred to as the Administrator) to exercise all powers and perform all duties of the Grama Panchayat, for such period but not exceeding six months as he may speci fy; (c) the Adhyaksha and Upadhayksha of the interim Grama Panchayat and the members of the standing committee shall be elected in the manner provided in this Act, within one month from the specified date; (d) the members of the interim Grama Panchayat so constituted shall subject to the provisions of sections 12, 13, 43 and 43 -A hold office for the unexpired portion of their term of office in the existing Grama Panchayat; (e) before the expiry of the term of office of the members of the interim Grama Panchayat or the expiry of term of the Administrator in accordance with the provisions of clause (b) or (d), Grama Panchayats (hereinafter referred to as new Grama Panchayats) for each of the new panchayat areas shall be constituted in the manner provided in this Act. (2) When the new panchayat areas are declared under this section so much of the Grama Panchayat fund and other property vesting in the existing Grama Panchayat shall vest in and such portion of the debts and obligations shall be transferred to, the Grama Panchayats established or the Administrator appointed under this section as the Deputy Commissioner may by order direct. (3) The rights and liabilities of the existing Grama Panchayat in respect of civil and criminal proceedings, contracts, agreements and matters or things arising in and relating to such local area declared as new panchayat areas shall vest in the Grama Panchayat constituted or the Administrator appointed under this section as the Deputy Commissioner may by order direct. (4) All budget estimates, assessment and assessment lists, valuation or measurements made or authenticated by the existing Grama Panchayat before the specified date shall be establi shed for the new panchayat areas, as the Deputy Commissioner may by order direct. (5) Any appointment, notification, notice, tax, order, scheme, licence, permission, rule, regulation, bye -law or form made, issued, imposed or granted in respect to such loc al areas and in force on the specified date shall continue in force and be deemed to have been made, issued or granted in respect of such new panchayat area as the Deputy Commissioner may by order direct until it is superseded or modified by any appointmen t, notification, notice, tax, scheme, licence, permission, rule, regulation, bye -law or form made issued, imposed or granted under this Act, 99 (6) All officers and servants in the employ of the existing Grama Panchayat immediately before the specified date shall be officers and servants of Grama Panchayats constituted in respect of new panchayat areas as the Deputy Commissioner may by order direct and shall until such other provision is made in accordance with this Act, receive salaries and allowances and be subject to conditions of service to which they were entitled or subject immediately before such date: Provided that it shall be competent for the interim Grama Panchayat, Administrator or the new Grama Panchayats, as the case may be, subject to the previ ous sanction of the Deputy Commissioner to discontinue the services of any officer or servant who in its or his opinion is not necessary or suitable to the requirements of the Grama Panchayat service in respect of the new panchayat area, after giving the o fficer or servant such notice, as is required to be given by the terms of his employment and every officer or servant whose services are so discontinued shall be entitled to such leave, pension and gratuity as he was entitled to take or receive on being in validated out of service as if the Grama Panchayat in the employ of which he was, had not ceased to exist. (7) All proceedings pending immediately before the specified date before the existing Grama Panchayats shall be deemed to be transferred to, and con tinue before, such of the interim Grama Panchayat or the Administrator or the new Grama Panchayats, as the case may be, as the Deputy Commissioner may by order direct. (8) All appeals pending before the existing Grama Panchayat immediately before the spec ified date shall so far as may be practicable be disposed off by such of the interim Grama Panchayats or the Administrator or the new Grama Panchayats, as the case may be, as the Deputy Commissioner may by order direct. (9) All prosecutions instituted by or on behalf of the existing Grama Panchayat pending immediately before the specified date shall be continued by or on behalf of such of the interim Grama Panchayats or the Administrator or of the new Grama Panchayats, as the case may be, as the Deputy Com missioner may by order direct. (10) If any difficulty arises in giving effect to the provisions of the preceding sub -sections the Government may, as occasion requires, by order published in the official Gazette, do anything which appears to it to be neces sary to remove the difficulty.]1 CHAPTER VII CONSTITUTION OF TALU K PANCHAYAT