Section 302(1)(c) in Karnataka Panchayat Raj Act, 1993
(c)the rights and liabilities of the Zilla Panchayat, Taluk Panchayat or Grama Panchayat in respect of civil and criminal proceedings, contracts and other matters or things (Including arrears of taxes, fees, cess and rates) arising in, or relating to the part of the area included in, or converted into the other local area shall vest in the local authority of the other local area and such rights and liabilities may be enforced by or against such local authority under the relevant law governing the local authority or the rules, bye laws and orders made thereunder.