Section 121(2) in Punjab Panchayat Samitis and Zila Parishads Act, 1961
(2)The prescribed authority may-(a)if it finds, after such inquiry as it may deem necessary that a failure of justice has occurred, set aside the said election, and a fresh election shall thereupon be held;(b)if it finds that the petition is false, frivolous, or vaxatious, dismiss the petition and order the security to be forfeited to the Panchayat Samiti or Zila Parishad concerned, as the case may be.