(1)The President, Executive Authority and every member of a Village Panchayat and the Chairman, Commissioner and every member of a Panchayat Union Council and the Chairman, [Secretary] [Substituted for the words 'Chief Executive Officer' by Tamil Nadu Panchayats (Third Amendment) Act, 1998 (Tamil Nadu Act 28 of 1998).] and every member of a District Panchayat shall be liable for the loss, waste or misapplication of any money or other property owned by or vested in the Village Panchayat or Panchayat Union Council or the District Panchayat, if such loss, waste or misapplication is a direct consequence of his neglect or misconduct; and a suit for compensation may be instituted against him in any Court of competent jurisdiction by the Panchayat or Panchayat Union Council or the District Panchayat with the previous sanction of the Inspector.
