Section 10 in Tamil Nadu Panchayats (Employees Conduct) Rules, 2001
10. Insolvency and habitual indebtedness.
- A panchayat employee shall endeavour to avoid habitual indebtedness or insolvency. If a panchayat employee is adjudged or declared insolvent or has incurred debts aggregating a sum which in ordinary circumstances, he could not repay within a period of two years or if part of his salary is frequently attached for debt, has been continuously so attached for a period of two years or is attached for sum which, in ordinary circumstances which with the exercise of ordinary diligence he could not have foreseen or over which he has no control and had not preceded from, extravagant or dissipated habits. A Panchayat employee who becomes the subject of a legal proceeding for insolvency shall forthwith report the full facts to the panchayat in which he is employed.
