Section 16(3) in The Punjab Village Common Lands (Regulation) Rules, 1964
(3)The sarpanch [-] [Words 'Naib-Sarpanch' omitted by Punjab Notification dated 14.2.1979.] or panch so appointed shall not be competent to compound or admit claim of the party suing the panchayat without prior authorization by the panchayat by a resolution in writing passed in a meeting specifically called for the purpose. If any decree or order is passed by the court as a result of fraud, misrepresentation, concealment of facts or collusion with the opposite party, the sarpanch or panch shall be personally liable for the loss caused to the panchayat.
