Payment of compensation and amount of encumbrance

(1) The compensation or the amount of encumbrance, as the case may be, shall be paid either in cash or in negotiable bonds redeemable in sixteen years and carrying interest at the rate of 4½ per cent per annum with effect from the date on which the ownership or possession or both of the land has or have vested in the Government under section 86 or section 87, or partly in cash and partly in such bonds, in such manner as may be prescribed. (2) The provisions of sub-sections (7), (8) and (9) of section 63 shall, as far as may be, apply in regard to the payment of compensation and other amounts under this section.