(i) The Nyaya Panchayat has the power to settle only minor and criminal cases such as thefts, gambling, simple injury, etc.
(ii) It can impose a fine of up to one hundred rupees.
(iii) It cannot send any person to jail. It also resolves disputes relating to custody and maintenance of children and dependants.
(iv) The cases tried by the Nyaya Panchayat are decided quickly in an inexpensive manner.