Persons surrendering land entitled to compensation

(1) Where ownership or possession or both of any land is surrendered by, or assumed from, a person or is vested in the Government under section 86 or section 87, such person shall be entitled to compensation. Where the rights of an intermediary are extinguished, such intermediary shall also be entitled to compensation. (2) The compensation payable to an owner for the surrender or assumption of ownership and possession of land shall be fifty-five per cent of the market value of the land and improvements, if any, thereon. (3) The compensation payable to the landowner, intermediary, or cultivating tenant for the surrender, assumption, vesting in the Government or extinguishment of their rights shall be the portion of fifty-five per cent of the market value of the land and the improvements, if any, thereon that will fall to his share if such value were apportioned among the landowner, cultivating tenant and intermediary, if any, in respect of the land, according to the following provisions :— (i) the portion of the compensation for any building or other improvements shall be set apart to the person to whom such building or other improvement belongs; (ii) ninety per cent of the portion of the compensation for the site of any homestead or hut in the occupation of a kudikidappukaran shall be deducted from the total amount of compensation; (iii) the balance remaining after deducting the amounts referred to in clauses (i) and (ii) shall be apportioned among the landowner, the intermediaries and the cultivating tenant in proportion to the profits derivable by them from the land immediately before the surrender, assumption or vesting in the Government, as the case may be. Explanation.—"profits derivable from the land" shall be deemed to be equal to (i) in the case of a landowner, the rent which he was entitled to get from the tenant holding immediately under him; (ii) in the case of an intermediary, the difference between the rent which he was entitled to get from his tenant and the rent for which he was liable to his landlord, and (iii) in the case of a cultivating tenant, the difference between the net income and the rent payable by him, and the rent payable by the cultivating tenant and the intermediary for the purposes of this explanation shall be as calculated under the provisions of this Act. (4) Where a mortgagee in possession surrenders possession of the land mortgaged to him,— (i) where the ownership of the land mortgaged has been surrendered by the owner of the land, the mortgagee shall be treated as a holder of an encumbrance in respect of the land, and the encumbrance shall be discharged as provided in sections 91 and 92; (ii) in other cases, the Government shall pay to the mortgagee the amount to which he would have been entitled under clause (i) if the ownership of the land mortgaged had been surrendered to the Government, and hold the land as mortgagee with possession with all the rights and liabilities of the mortgagee.