At first, alagu chaudhry was the best friend of jumman sheikh. when he was chosen as panch, he knew that jumman was wrong. so rather than chosing his friend, he took the side of jumman's aunt. jumman was angry, but then also the next time he was chosen as judge in alagu's case, he supported him because he was right.
this shows when being friend and being enemies they supported truth and maintained the dignity of their roles as judges because god lives in the panch.