Amount of arrears of land revenue, etc., to be deducted from the amount of compensation.

Before making payment of any compensation amount under this Part to any person, it shall be lawful for the Collector to deduct therefrom-

1. (a) all amounts of arrears of land revenues, cesses or dues in respect of any watan land, which are certified by the Collector to have had become due for payment by such person on or before the appointed day, and
2. (b) the whole or part of the amount of any loan advanced by the State Government together with interest thereon, if any, which is certified by the Collector to have had become due for repayment by such person on or before the appointed day: Provided that, the total amount so deducted shall not exceed one-third of the amount of compensation awarded.