Section 268(1) in The Gujarat Municipalities Act, 1963
(1)Save as expressly provided in section 26 if an agreement is not arrived at with respect to any compensation or damages which are by this Act directed to be paid, the amount and if necessary the apportionment of the same shall be ascertained and determined by a panchayat of five persons, of whom two shall be appointed by the municipality, two by the party to or from whom such compensation or damages may be payable or recoverable, and one, who shall be sarpanch, shall be selected by the members already appointed as above.
