The Punjab Village Common Lands Regulation Act 1961
Section 10 A. Power of the Collector to cancel or vary leases etc. of lands vested in Panchayats
(1) Notwithstanding anything contained in this Act, or the Shamilat law or in any other law for the time being in force, the Collector in the area of his jurisdiction may call for the record of any lease contact or agreement entered into by the Panchayat in respect of land vested or deemed to be vested in it, whether such lease, contact or agreement is entered before or after the commencement of the Punjab Village Common Lands (Regulation) Amendment Act,1964 and examine such record for the purpose of satisfying himself as to the legality or propriety of such lease, contract or agreement.
(2) Where, on examination of the record under sub-section (1) and after making such inquiry, if any, as he may deem fit, the Collector is satisfied that such lease, contract or agreement :
(i) has been entered into in contravention of any of the provisions of this Act or the Rules made there under ;
(ii) has been entered into as result of fraud or concealment of fact ; or
(iii) is detrimental to the interests of the panchayat as prescribed; the Collector may, notwithstanding anything as aforesaid, cancel the lease, contract or agreement or vary the terms thereof unconditionally or subject to such conditions as he may think fit ;
Provided that no order under this sub-section shall be passed by the collector without affording reasonable opportunity of being heard to the parties to the lease, contract or agreement.
(3) Where the terms of any lease, contract or agreement have been revised by the Collector under sub-section (2), the variation shall, notwithstanding anything contained it this Act or Shamilat law or in any other law for the time being in force be binding on the parties to the lease, contract or agreement as the case may be.
(4) Where the lessee or the person with whom a contract or agreement has entered into by a Panchayat refuses to accept the variation made by the Collector under this section in the terms of lease, contract or agreement, as the case may be, shall be deemed to be cancelled by the Collector under this section with effect the date of such refusal.
(5) Where, under this section, any lease, contract or agreement is cancelled or is deemed to be cancelled or its terms are varied , lessee or the person with whom the contract or agreement has been entered into, who suffers by such cancellation or variation, is entitled to receive compensation to be assessed by the Collector for any loss or damage caused to the lessee or such person, which naturally arose in the usual course of things from such cancellation or variation.
Provided that no such compensation shall be given for any remote or inditect loss or domage sustained by reason of such cancellation or variation.
(6) Notwithstanding anything contained in any law for the time being in force, the amount of compensation awarded by the Collector under this section shall be payable by the panchayat in the prescribed manner and shall be a valid charge on the Shabha funds.
(7)Any party to a lease , contract or agreement aggrieved by any order of the Collector made under this section may, within a period of thirty days from the date of such order, appeal to the Commissioner whose decision thereon shall be final.