Payment of compensation.

(1) Subject to the provisions of section 35A, where an occupancy certificate has been issued under section 30 in respect of an occupancy holding, the Girasdar shall be entitled to withdraw the sum specified in the order of Mamlatdar from the amount deposited by the tenant and the tenant shall be entitled to withdraw the balance, if any, from the amount deposited by him, in accordance with rules to be made by the Government for the purpose :

Provided that if the occupancy holding in respect of which the certificate is issued is subject to any mortgage by the Girasdar to any person at the time of the issue of the certificate, and there is a dispute as to the persons to whom the amount or any part of it is payable * * * the Mamlatdar may keep the amount in deposit and refer the parties to a Civil Court :

Provided further that if there is a widow's Jiwai payable from estate and there is an application from the widow to the Mamlatdar in this behalf, the Mamlatdar shall keep the amount in deposit until such application has been finally disposed of in accordance with the provisions of section 35-A.

(2) Subject to the provisions of section 35-A, in addition to the compensation paid by the tenant in respect of the holding, the Government shall pay to the Girasdar as compensation every year for fifteen years an amount equal to the assessment on the holding as fixed by the Mamlatdar under clause (6) of sub-section (1) of section 30 :

Provided that in the case of a holding in respect of which, or in the produce of which, the interest of the Girasdar is limited, the amount of each annual instalment shall be reduced in proportion to the limited interest of the Girasdar in the holding in such manner as may be prescribed.

(3) An instalment under sub-section (2) shall become due and payable on the 1st day of February every year, the first instalment falling due on the 1st February, immediately following the date on which the occupancy certificate has become effective.

(4) If any such instalment which has fallen due is not paid within two months of the due date, interest at the rate of 3 percent per annum shall be paid by the Government to the Girasdar on that instalment.

(5) Remission or suspension of land revenue granted to a tenant shall not affect the payment by the Government of the compensation payable by it under this section,