Section 137(2) in The Tamil Nadu Town Panchayats, Third Grade Municipalities, Municipalities and Corporations (Elections) Rules, 2006
(2)Where by an order under rule 130 or 131, the election of a returned candidate is held to be void, acts and proceedings in which that returned candidate has, before the date thereof, participated shall not be invalidated by reason of that order, nor shall such candidate be subjected to any liability or penalty on the ground of such participation.