(1) When any person threatens to bring any suit against the Panchayat, it is incumbent on the Secretary in case of Gram Panchayat or Executive Officer concerned in case of Panchayat Samiti or Secretary in case of Zila Parishad as the case may be, in consultation with the Pradhan of Gram Panchayat or Chairman of Panchayat Samiti or Zila Parishad, as the case may be, to satisfy themselves without delay of justice or otherwise of the whole or any part of the claim made and all reasonable efforts shall be made to bring about an amicable settlement, without resort to proceedings in a Court, so far as this can be done without sacrificing the just right of the concerned Panchayats.
(2) The Secretary of the Gram Panchayat or Executive Officer of the Panchayat Samiti or Secretary of the Zila Parishad, as the case may be, shall immediately on receiving any notice of an intended suit, proceed to inquire 42 into the matter and consider the claim put forward and decide or move the proper authority to decide whether any, and if so what, steps should be taken to adjust the claim, whether in whole or part or whether the claimant should be left to take such legal action as he may deem proper.
(3) When notice of the intention of any person to sue the Panchayat or any of its officer has been received, no communication should ordinarily be made to such person otherwise than under legal advice of Assistant District Attorney in case of Gram Panchayats and Panchayat Samitis and District Attorney in case of Zila Parishad or they may engage any other advocate with the approval of District Panchayat Officer in case of Gram Panchayat, Deputy Commissioner in case of Panchayat Samiti and Director in case of Zila Parishad.
(4) When after receiving any notice under sub-rule (3) and inquiring into the matter, the Secretary and Pradhan of the Gram Panchayat, Executive Officer and Chairman of the Panchayat Samiti and Secretary of the Zila Parishad, as the case may be, may propose to:-
(a) tender any amount admitted to be due to the claimant ;
(b) offer terms of adjustment or suggest reference to arbitration ;
Legal advice should ordinarily be sought as to the form or terms of the proposed tender, adjustment of reference, as the case may be, before they are communicated to the opposite party and once a suit has been instituted, no sum should be tendered, terms of adjustment offered or reference to arbitration suggested without taking legal advice from the Asstt. Distt.
Attorney/District Attorney/Legal Expert.