Section 105(2) in The Daman And Diu Panchayat Regulation, 2012
(2)If the District Judge, finds that the election of any person was invalid, he shall, by an order, either-(a)declare a casual vacancy to have arisen, or(b)declare another candidate to have been duly elected,whichever course appears, in the particular circumstances of the case, to be more appropriate, and in either case the District Judge may award costs at his discretion.