Procedure for vesting of rights of religious, charitable or educational institutions in Government and determination of annuity

The Government shall pay the annuity payable to the institution every year in perpetuity on such date or dates and in such manner as may be prescribed: Provided that where the right, title and interest of the institution are subject to any encumbrance,— (i) the value of the encumbrance shall be paid to the holder of the encumbrance; and (ii) five per cent of the value of the encumbrance shall be deducted from the annuity and the balance, if any, alone shall be paid to the institution: Provided further that where the value of the encumbrance is more than twenty times the annuity,— (i) if there is only one encumbrance, twenty times the annuity shall be paid to the holder of the encumbrance; and (ii) if there are more than one encumbrance, twenty times the value of the encumbrances shall be paid to the holders thereof in their order of priority, and no amount by way of annuity shall be payable to the institution.