Section 263(1) in The Gujarat Panchayats Act, 1993
(1)Where by virtue of a notification issued under clause (g) of Article 243 of the Constitution any village ceases to be a village is split up into two or more villages with effect from the date on which the village is so split up (hereinafter referred to as "the said date") the following consequences shall ensue, that is to say-(a)the panchayat constituted in respect of such local area shall stand dissolved and all the members of the panchayat shall vacate office,(b)until for the respective new village a village panchayat is constituted the State Government shall appoint an administrator or administrators, to exercise the powers and perform the functions of the respective panchayat of the new village.(c)the unexpended balance of the village fund and all properties, including arrears of rates, taxes and fees belonging to the dissolved panchayat shall subject to all charges and liabilities affecting the same, vest in such proportion and in such manner as the State Government may direct in the respective panchayat of the new village:Provided that until the respective panchayat for new village is constituted and it holds its first meeting under sub-section (1) of section 51 the unexpended balance of the fund and other properties vesting in the panchayat shall be held by the administrator of new village and shall be utilised by him for the benefit of the inhabitants of the new village in such manner as he may think fit;(d)any appointment, notification, notice, tax, fee, cess, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted in respect of the area within the jurisdiction of the dissolved panchayat and in force on the said date shall continue in force and be deemed to have been made, issued imposed or granted in respect of the new village formed out of the said area until it is superseded or, modified by any appointment, notification, notice, tax, fee, cess, order, scheme, licence, permission, rule bye-law or form made issued, imposed or granted under the law applicable thereto;(e)all budget estimates, assessments, assessment lists, valuations or measurements made or authenticated by the dissolved panchayat immediately before the said date shall in so far as they relate to the new village be, deemed to have been made or authenticated in respect of the new village.(f)all debts and obligations incurred and all contracts made by or on behalf of the dissolved panchayat immediately before the said date and subsisting on the said date shall in, so far as they relate to the village formed in the area within the jurisdicition of the dissolved panchayat be the debts and obligations incurred by and the contracts made by the panchayat of the new village:(g)all officers and servants in the employ of the dissolved panchayat immediatel before the said date shall be allocated to the panchayat of the new village by the State Government in such manner as it may direct and until other provision is made in accordance with this Act, they shall receive salaries and allowances and be subject to the conditions of service to which they were entitled or subject on the said date:(h)all proceedings (including appeals) pending at the said date before the dissolved panchayat shall be deemed to be transferred to and continued by the panchayat of new village before which they would have been instituted, had the new village been formed when the proceedings were instituted:Provided that until the panchayat for the new village is constituted the administrator appointed for the new village may deal with such proceedings and dispose them off:(i)all prosecutions instituted by or on behalf of and all suits or other legal proceedings instituted by or against the dissolved panchayat or any officer thereof and pending at the said date shall be continued by or against the panchayat of the new village, by on behalf of or against which they would have been instituted, had the new village been formed when the prosecutions, suits or legal proceedings were instituted and until such panchayat is constituted, shall be continued by or against the administrator appointed for the new village.
