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Payment of Compensation 16. Liability of State Government to pay compensation for surplus land (1) The State Government shall pay compensation for surplus land vesting in the State under section 12 to the holder of such land in accordance with the rules contained in Schedule II. (2) In addition to the compensation payable under sub-section (1) the State Government shall pay to the holder of such land additional compensation-- (i) for any improvement made by him on land; or (ii) for trees, if any, standing on land.]3 (3) In determining the additional compensation payable under sub-section (2) the following matters shall be taken into consideration, namely:-- (a) the enhancement of the value of the land due to the improvement; (b) probable duration of the effect of the improvement; (c) labour and capital spent by the holder on the improvement; [(d) nature of trees and value thereof.]1 (4) The compensation payable under sub-sections (1) and (2) shall be due as from the date of vesting of surplus land and shall carry interest at the rate of three per centum per annum from the date of vesting to the date of payment. 17. Manner of payment of compensation Subject to the provisions of this Act and the rules made thereunder the compensation payable under section 16 shall be paid in the following manner, namely:-- (a) in cash in full within six months of the date of vesting where the total amount of compensation does not exceed one thousand rupees; (b) in other cases, a sum not less than one thousand rupees shall be paid within six months of the date of vesting and the balance shall be paid in equal annual instalments not exceeding nineteen, subject to the condition that no instalment except the one that relates to final payment shall be of less than one hundred rupees: Provided that the State Government may at any time for special reason pay to any holder the amount of future instalments not exceeding five in advance. 18. Interim payment (1) Where the amount of compensation is not paid to a holder within a period of six months from the date of vesting, the State Government shall, subject to such restrictions and conditions as to security, repayment or otherwise as may be prescribed, direct the payment to each such holder of interim compensation which shall not be less than one-twentieth of the estimated amount of compensation subject to the maximum of one thousand rupees. (2) Such interim compensation shall be deemed to be part of the compensation payable under this Act, and shall be deducted from and adjusted against it. 19. Determination of compensation After the land of a holder is declared surplus the competent authority shall after making such enquiry as it thinks fit and giving the holder concerned an opportunity of being heard, determine the amount of compensation due to such holder and such compensation shall be payable in accordance with the provisions of this Act. 20. Apportionment of compensation in certain cases Where the holder of the land vested in the State Government under section 12, is— (i) a widow; or (ii) an unmarried daughter; or (iii) a married woman who has been deserted by her husband; or (iv) a minor; or (v) a person subject to physical or mental disability due to old age or otherwise; or (vi) a person detained or imprisoned under any process of law; or (vii) a person in the service of Armed Forces of the Union; or (viii) a public charitable or religious institution; or (ix) a local authority or a co-operative society; and such holder has prior to such vesting leased such land in pursuance of the provisions of sub-section (2) of section 168 of the Madhya Pradesh Land Revenue Code, 1959 (20 of 1959), the compensation payable in respect of such land shall be apportioned between the holder and the lessee in the manner prescribed. 21. Payment of compensation to be full discharge (1) The payment of compensation to the holder or other person entitled thereto in the manner prescribed by or under this Act shall be a full discharge of the State Government from all liability to pay compensation for the divesting of the surplus land and no further claims for payment of compensation in respect thereof shall lie. (2) Nothing in this section shall prejudice any rights in respect of the said surplus land to which any other person may be entitled by due process of law to enforce against the person to whom compensation has been paid as aforesaid. Encumbrances on surplus land 22. Definitions In this Chapter— (a) "creditor" means a person to whom a secured debt or claim is owing and "debtor" means the person by whom such debt is owed; (b) "excluded debt" refers to secured debt or claims due in respect of— (i) any liability in respect of any sum due to any society registered or deemed to be registered under any law relating to co-operative societies in force in any part of Madhya Pradesh; (ii) any liability in respect of maintenance whether under decree of court or otherwise; (iii) any liability due to a bank or a company; (iv) a mortgage claim against property in the hands of a subsequent transferee who has taken the transfer in order to satisfy the mortgage; (v) any liability arising between mortgagor and mortgagee in respect of land revenue of the mortgaged property which has been paid by the mortgagee on behalf of the mortgagor; (c) "secured debt or claim" means debt or claim subsisting on the appointed day whether due or not due and secured by the mortgage of or a charge on the surplus land but shall not include land revenue or anything recoverable as land revenue or any money for the recovery of which a suit is barred by limitation. 23. Application by creditor to competent authority (1) Any creditor of a holder of surplus land may, within sixty days from the publication of the final statement under sub-section (6) of section 11, file an application to the competent authority specifying therein the amount and particulars of his debt or claims against such holder. (2) An application under sub-section (1) shall contain such further particulars as may be prescribed and shall be signed and verified in accordance with the manner prescribed by the Code of Civil Procedure, 1908 (V of 1908), for signing and verifying plaints. (3) The claim of every creditor other than a creditor mentioned in the return filed under section 9, who fails to file an application under sub-section (1) shall be deemed for all purposes and all occasions to have been discharged against the debtor. (4) The provision of section 5 of the Indian Limitation Act, 1908 (IX of 1908), shall apply to an application under this section. 24. Withholding of compensation money Upon receipt of an application under section 23 if the competent authority finds that any suit or proceeding is pending against the holder of surplus land for the recovery of any amount in respect of a secured debt or claim the competent authority shall issue a notice to the Court concerned and thereupon such suit or proceeding shall be stayed. 25. Submission of claim and production of documents (1) Upon receipt of an application under sub-section (1) of section 23 the competent authority shall fix a date for hearing and shall cause a notice of the date of hearing together with a copy of the application received, to be served on the holder and shall cause a copy of such application together with a copy of the return filed under section 9 to be affixed on a conspicuous place in its office. (2) The competent authority shall also issue notice to every creditor, who according to the return filed under section 9 has an interest in the surplus land but has not filed any application under sub-section (1). Such notice shall be accompanied by a copy of the return. (3) Every creditor who has filed an application under section 23 or to whom a notice is issued under sub-section (2) shall, on or before such date as may be fixed by the competent authority file a written statement of his claim signed and verified in the manner prescribed by rule 15 of Order VI of the Code of Civil Procedure, 1908 (V of 1908). Such statement shall be submitted in person or by an agent authorised in writing or by registered post with acknowledgment due and every claim not so submitted shall be deemed for all purposes and all occasions to have been discharged as against the debtor : Provided that if a creditor files a statement of claim within a further period of two months and satisfies the competent authority that such creditor was for good and sufficient cause unable to file the same before the date fixed for hearing the competent authority may revive the claim. (4) On the date on which the case is fixed for hearing the creditor shall produce the documents in his possession or control on which he bases his claim. If such documents are not produced at such hearing or at an adjourned hearing fixed for this purpose by the competent authority, the competent authority may declare such claim to be discharged for all purposes and all occasions against the debtor : Provided that if the competent authority is satisfied that any creditor was for good and sufficient cause, unable to produce such documents he may require them to be produced on a date fixed for the purpose and may revive the claim. 26. Determination of debt Subject to the provisions of section 27, the competent authority shall, after hearing the debtor and the creditor, if present and making a such further enquiry as it may deem fit, determine the amount which should be paid to creditors out of the amount of compensation determined under section 16. 27. Calculation of interest and reduction of principal in all transactions (1) The competent authority shall, notwithstanding anything contained in any other enactment for the time being in force, re-open all transactions made twelve years before the last transaction or before the 1st January 1940, whichever is earlier, and as far as may be, ascertain in respect of each loan the date on which it was originally advanced. It shall, notwithstanding the provisions of any agreement or law to the contrary, calculate the interest due at six per centum per annum or such lower rate of interest as may have been agreed upon between the parties. It shall also determine the amount of principal, if any, of each loan which would have remained unpaid if the calculation of interest had been made as herein provided: (2) If the competent authority finds that the loan was originally advanced prior to the 1st January, 1940, then it shall reduce the principal determined under sub-section (1) by twenty per centum. (3) Notwithstanding anything contained in any law for the time being in force, no competent authority shall, in respect of any secured debt or claim to which this Chapter applies, award on account of arrears of interest a sum greater than the principal of the loan as determined under sub-section (1). (4) If the competent authority finds that nothing is due to the creditor, it shall pass an order discharging the secured debt or claim. (5) The amounts determined due shall not carry any interest after the date of determination. (6) Nothing in sub-sections (1) to (5) shall apply to excluded debts. The amount due for such debts shall be determined in accordance with the terms of the contract between the parties or any law for the time being in force. 28. Priority amongst creditors Subject to rules framed under this Act, the competent authority shall, where there are two or more creditors, settle the order of priority in which each creditor shall be entitled to receive the amount due to him. 29. Distribution of compensation money (1) The compensation payable to a holder under section 16 shall be distributed between the secured creditors in the order of their priority and if there are more than one such creditors holding the same order of priority, it shall be distributed rateably between them in proportion to the amounts determined due. (2) The amount determined payable to the creditors shall be payable in as many instalments as may be fixed for the payment of compensation to the holder of surplus land under the provisions of this Act. (3) If the total amount determined payable to creditors is less than the compensation payable under section 16 the amount payable to creditor shall be deducted from such compensation and the balance shall be payable to the holder of surplus land. 30. Order regarding unpaid amount of claim If the amount of compensation payable to the holder under section 16 is not sufficient to satisfy the claims of the creditors as determined under this Chapter, the competent authority shall record an order specifying— (a) the amount remaining unpaid in respect of each claim; (b) the name of the creditor to whom it is due; and (c) the particulars of the property other than surplus land belonging to the holder remaining encumbered in respect of each claim. 31. Recoveries of unpaid amount (1) If the property of a holder other than surplus land is encumbered in respect of any claim of the creditor in whose favour an order under section 30 has been passed, the creditor may within one year of the date of such order apply to the civil court for passing a preliminary decree for sale of the encumbered property and the civil court shall accordingly pass a preliminary decree for sale for the amount remaining unpaid in respect of that amount as specified in the said order fixing such time as it may deem fit. (2) Subject to the provisions of sub-section (1) any creditor in whose favour an order under section 30 has been passed may recover the amount remaining unpaid in respect of any claim which is due to such creditor according to the said order from the holder in the same manner as an arrear of land revenue. 32. Court fees by a creditor (1) Any creditor who applies to a civil court under section 31 shall be liable to pay such court-fees upon the amount declared as due as he would be liable to pay upon a plaint filed for the recovery of the same and the civil court shall not proceed with the application until such court-fee has been paid : Provided that no court-fees shall be payable if court-fees have already been paid in respect of a debt. (2) The amount of court-fees paid by the creditor shall form costs of the proceeding and be recoverable from the debtor. 33. Appeal against orders of the competent authority (1) Any person aggrieved by an order of the competent authority under this Chapter may file an appeal against such order,— (i) in the court of the District Judge within whose jurisdiction the whole or any part of surplus land which is subject to mortgage or charge, as the case may be, lies if the secured debt or claim does not exceed Rs. 10,000; (ii) in the High Court if the secured debt or claim exceeds Rs. 10,000. (2) No appeal under sub-section (1) shall lie — (a) to the Court of District Judge, unless it is preferred within 30 days of the communication of the order appealed against; (b) to the High Court, unless it is preferred within 60 days of the communication of the order appealed against. 34. Finality of decision The decision of the District Court or the High Court, as the case may be, in an appeal under section 33 shall be final and where no appeal has been preferred the decision of the competent authority shall be final. Disposal of surplus land 35. Allotment of surplus land vesting in the State Government under this Act (1) Subject to the provisions of this Act and the rules framed thereunder surplus land 36. Recovery of premium in case of transfer of allotted land Where land allotted under section 35 is transferred, the amount of premium remaining unpaid in respect 37. Temporary leases of land liable to be allotted under section 35 (1) If in the case of land vesting in the State under this Act, the Collector considers that allotment of such land under Section 35 is likely to take time and that with a view to preventing the land remaining uncultivated, it is necessary to take such a step, he may lease the land for cultivation to any agriculturist who has under personal cultivation land less than the ceiling area subject to the following conditions :- (i) the lease shall be for a period of one year; (ii) the lessee shall pay rent at the rate fixed by the Tahsildar subject to the provisions of the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959); (iii) the lessee shall be liable to pay the land revenue and the other cesses payable in respect of the land; (iv) if the lessee fails to vacate the land on the expiry of the term of the lease, he shall be liable to be summarily evicted by the Tahsildar. (2) The amount of rent realised under sub-section (1) shall be credited to Government. 37A. Offences and punishment [37-A (1) If any person who is under an obligation to furnish a return under this Act refuses or wilfully fails to furnish a return within the time specified for the purpose, or wilfully furnishes an incomplete or incorrect return, he shall be punishable with imprisonment for a term which may extent to two years or with fine which may extend to five thousand rupees or with both. (2) If any person who is under an obligation to furnish a return under this Act furnishes a return which he knows or has reason to believe to be false, he shall be punishable with imprisonment for a term which may extend to two years or with fine which may extend to five thousand rupees or with both.] 37B. Cognizance of offence B (1) No Court inferior to that of a Magistrate of the First Class shall try an offence punishable under this Act. (2) No Court shall take cognizance of any offence punishable under this Act except on a complaint in writing by an Officer empowered by the State Government in this behalf. Miscellaneous 38. Presumption about entries in record of rights, etc Every entry in the record of rights and the annual papers prepared in the Mahakoshal region in accordance with the provisions of the Madhya Pradesh Land Revenue Code, 1954 (II of 1955), and every entry in the records of a like nature maintained under any law for the time being in force in any other region of this State shall, for purpose of this Act, be presumed to be correct. 39. Taking possession of land vested in the State Where under the provisions of this Act any land vests in the State, the Tahsildar may, after removing any obstruction that may be offered, forthwith take possession of the land and such land shall, subject to such rules as may be prescribed, be managed by the Collector until it is disposed of in accordance with the provisions of this Act. 40. Revenue Officer to direct delivery of possession The competent authority may upon its own motion or on the application of any person who is entitled to the possession of any land under any of the provisions of this Act, direct that possession of such land be delivered to such person. 41. Appeals [41. Except where the provisions of this Act provide otherwise, against every order of a Revenue Officer or competent authority under this Act or the rules made thereunder, an appeal shall lie,- (i) if such order is passed by a Revenue Officer either as competent authority or otherwise to the authority competent to hear appeals under sub-section (1) of Section 44 of the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959) from an order passed by a Revenue Officer of the same rank under the said Code; (ii) if such order is passed by the competent authority where such authority is an officer other than a Revenue Officer appointed under sub-clause (iii) of clause (e) of section 2-to the Board of Revenue as if such officer were an Additional Settlement Commissioner appointed under Section 65 of the said Code.] 42. Revision The Board of Revenue or the Commissioner may on its/his motion or on the application by any party at any time for the purpose of satisfying itself/himself as to the legality or propriety of any order passed by or as to the regularity of the proceedings of any competent authority subordinate to it/him call for and examine the record of any case pending before or disposed of by such competent authority, and may pass such orders in reference thereto as it/he thinks fit : Provided that it/he shall not vary or reverse any order unless notice has been served on the parties interested and opportunity given to them for being heard : Provided further that no application for revision shall be entertained against an order against which an appeal is provided under this Act. 43. Court fees Notwithstanding anything contained in the Court Fees Act, 1870 (Act 7 of 1870), every application or memorandum of appeal or an application for revision under this Act shall bear a Court Fee Stamp of such value as may be prescribed. 44. Limitation Every appeal or application for revision under this Act unless specifically provided otherwise in the Act, shall be filed within a period of sixty days from the date of the order against which such appeal or revision is preferred. The provisions of Sections 4, 5, 12 and 14 of the Indian Limitation Act, 1908 (IX of 1908)2, shall apply to the filing of such appeal or application for revision. 45. Enquiries and proceedings to be judicial proceedings All enquiries and proceedings before any Revenue Officer, or competent authority shall be deemed to be judicial proceedings within the meaning of Sections 193 and 228 and for the purposes of Section 196 of the Indian Penal Code, 1860 (XLV of 1860). 46. Bar of jurisdiction of Civil Courts Save as expressly provided in this Act, no Civil Court shall have any jurisdiction to settle, decide or deal with any question which is by or under this Act required to be settle, decided or dealt with by the competent authority. 47. Power to remove difficulty If any doubt or difficulty arises in giving effect to the provisions of this Act, the State Government may, by order, make such provisions, not inconsistent with the purposes of this Act, as appear to be necessary or expedient for removing the doubt or difficulty. 48. Protection of action taken under this Act (1) No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or any rules made thereunder. (2) No suit or other legal proceedings shall lie against the State Government for any damage caused or likely to be caused or for any injury suffered or likely to be suffered, by virtue of any provision of this Act or for anything which is in good faith done or intended to be done in pursuance of this Act or any rules made thereunder. 49. Act to override other enactments, contracts, etc The provisions of this Act and any rules made thereunder shall have effect, notwithstanding anything inconsistent therewith contained in any other enactment for the time being in force or any custom, usage or agreement or decree or order of a court or other authority. 50. Power to make rules (1) The State Government may, by notification, make rules for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the procedure to be followed by the competent authority exercising powers under this Act; (b) the manner in which notices and orders under this Act shall be issued, served, communicated or enforced; [(c) * * * * ] (d) the form in which and the period within, which particulars in respect of transfer of land shall be furnished under sub-section (4) of Section 5; (e) the period within and the manner in which the return has to be submitted under Section 9; (f) (i) the enquiry to be held under sub-section (2) of Section 11; (ii) the manner in which a copy of the draft statement shall be served on the person or persons concerned under Section 11; [(ff) the manner in which and the principles in accordance with which the holder shall pay to the State Government the profits under Section 13-A;] (g) the manner in which an appeal under Section 41 may be preferred; (h) the manner in which any land vested in the State Government shall be disposed of; (i) any other matter which is to be or may be prescribed under this Act. (3) The power to make rules under this Section shall be subject to the condition of previous publication in the Official Gazette. [SCHEDULE I]