Section 266B(l) in The Gujarat Municipalities Act, 1963
(l)all prosecutions instituted by or on behalf of the dissolved panchayat and all suits or other legal proceedings instituted by or against such panchayat or any officer of the dissolved panchayat pending at the said date shall be continued by or against the interim municipality until a municipality is constituted and on constitution of a municipality by or against such municipality as if the local area had been the municipal borough when such prosecutions, suits or proceedings were instituted;