Section 57 in The Jammu and Kashmir Panchayati Raj Rules, 1996
57. Power to contract for collection of taxes and other dues.
(1)Every contract or agreement under sections 15 and 23 of the Act shall be signed for and on behalf of the Panchayat by the Sarpanch, Naib Sarpanch or a Panch duly authorised by the Panchayat.(2)Commission, if any, profit or gain shall be creditable to the Panchayat funds. Any loss in the contract shall be borne by the Panchayat after its verification and assessment by the Panchayat provided that the same was not due to default of any member or servant of the Halqa Panchayat.
