Section 266(2)(b) in The U.P. Kshettra Panchayats And Zila Panchayats Adhiniyam, 1961
(b)all rights, liabilities and obligations of the aforesaid Zila Panchayat or the Kshettra Panchayat, whether arising out of any contract or otherwise, existing immediately before such date, shall be the rights, liabilities and obligations of the Zila Panchayat or the Kshettra Panchayat, as the case may be.