Question

god lives in the panch" how do the events in the story justify the title

Answer 1

God lives in Panch is justified in the story by Pemchand called "Panch Parmeshwara" it is said so because at the time of decision making the supreme power lies in the hand of the Panch as he makes the ultimate decision which needs to be followed.At this point of time, betrayal or decision taken for self purposes would lead to discontentment and guilt and would be unfair.Knowing this fact although once best buddies but now enemies with Algu Choudhary,Jumman Sheikh did what should've been done and did justice and thus totally justified that "God lives in Panch" 

Answer 2

The title of the story God Lives in the Panch is quite appropriate, as the entire story revolves around the theme that the voice of the panch is the voice of God. In the villages in our country, the simple rural folk look up to the panchayat and firmly believe that the verdict it pronounces will always be just fair, for God himself speaks through the panch's mouth. Jumman Sheikh's old aunt has complete faith that justice will be done to her, if she approaches the panchayat. She repeatedly says that "the panch knows neither friend nor enemy", and that "Allah lives in the heart of the panch, and his voice is the voice of God".
God is always impartial in his dealings with human beings. Similarly, a panch has to be impartial in dispensing justice. It is for this reason that it is said that God lives in the panch. Premchand has quite aptly justified the title through the plot and characters. Not for a moment does the story divert from its message which is explicitly conveyed through the title.