- If a Grama Panchayat, Taluk Panchayat or Zilla Panchayat makes default in the payments of any amount, loan installments or interest due to the Government, the Karnataka State Electricity Board or the salaries, allowances or leave and pensionary contributions of Government servant deputed for service under such Panchayats, the Government may make an order directing the person having the custody of the Fund of the Panchayats concerned to pay the amount due in priority to any other charge against such fund and such person shall so far as the amounts to the credit of such Fund admit be bound to comply with the order.
