Claims of limited owner on surplus land

(1) where any surplus land acquired under the provisions of this Act is held by a limited owner on the date of the acquisition, the amount payable in respect of such surplus land under section 24 shall, subject to such conditions as may be prescribed, be kept in deposit before such authority as may be prescribed, and the authorised officer shall direct payment of the interest accruing from the amount so deposited to the person or persons who would, for the time being, have been entitled to the possession of the said land: Provided that where the limited owner has created an encumbrance over the surplus land referred to in this section, the whole or any portion of the interest aforesaid shall be paid to the encumbrancer, to the extent to which the encumbrancer is entitled and the balance shall be paid to the person or persons who would, for the time being, have been entitled to the possession of the said land.