Section 117(1) in The U.P. Panchayat Raj Act, 1947
(1)All debts and obligations incurred and all contracts made by or on behalf of the Gaon Sabha before the date referred to in sub-section (1) of Section 115 and subsisting on the said date shall be deemed to have been incurred and made by the Gram Panchayat in exercise of the powers conferred on it by this Act and shall continue in operation accordingly.
