(1)Every member of the Gaon Panchayat or any committee constituted under this Act or panch of a Circle Panchayat shall be liable for the loss, waste or misapplication of any money or property belonging to the Gaon Sabha or Circle Panchayat if such loss, waste or misapplication is a direct consequence of his neglect or misconduct while a member of the Gaon Panchayat or of any committee or a panch of a Circle Panchayat and a suit for compensation may be instituted against him by the Gaon Panchayat, as the case may be, with the previous sanction of the prescribed authority.
