कुरुनादिभ्यो ण्यः

Operational rule vidhi

The affix ण्य comes after the word कुरु and a word beginning with न when these words denote a country being the name of a क्षत्रिय tribe also.

Word by word (padaccheda)

Left context कुरु- नादिभ्यः pañcamī · bahuvacanaSubstitute / term य ः prathamā · ekavacana

Left context Pañcamī (5th case): "after X", the operation applies to what follows (1.1.67 तस्मादित्युत्तरस्य). Also used for limits and sources.
Substitute / term Prathamā (1st case): in operational rules, the substitute or the thing introduced; in definitions, the term or its referent.

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Full reading

कुरु-नादिभ्यः ण्यः

Pāṇini leaves out words that carry over from earlier sūtras. Expand to see the rule as a reader actually understands it.

Commentary

The affix ण्य comes after the word कुरु and a word beginning with न when these words denote a country being the name of a क्षत्रिय tribe also.
This debars 'an' and 'an'. Thus कौरव्यः, नेषव्यः 'the son of Kuru and Nishadha'. The affix denotes 'the king there of' also, as कौरव्यो राजा ॥ How do you explain the form नैषधोर्हति चेदघम् ? This is an archaic or Vedic form. How then in सनैषधस्यार्थपतेः सुतायां ? This is a poetic license.

Śrīśa Chandra Vasu, The Ashtadhyayi of Panini (1897), via ashtadhyayi.com.