Panchayat to be civil or revenue court.

(1) The Panchayat when trying such suit shall be deemed to be a civil or revenue court as the case may be. Unless relinquished in part, the suit shall include the whole of the claim and no subsequent suits shall lie before the Panchayat or any other court for the claim or a part thereof relinquished or omitted. (2) No suit shall lie before a Panchayat unless the defendant or one of the defendants, sought to be made liable for the claim, where there are more than one, at the time of the institution of the suit resides or carries on business or personally works for gain, or has within one year of the institution of the suit resided or carried on business or personally worked for gain, within the limits of its jurisdiction or the cause of action has arisen wholly or in part within these limits.