Compensation for resumption of Jagirs

(1) In consideration of the extinguishment and resumption of the jagir the jagirdar or his successor, as the case may be, shall be paid a sum equal to seven times the amount payable annually to the Jagirdar immediately before the extinguishment and resumption in respect of the assignment or grant or seven times the amount which would have been payable by him annually immediately before the extinguishment and resumption as land revenue but the remission by way of muafi : Provided that— (a) in the case of a military jagir referred to in the proviso to section 3 the jagirdar shall before the 15th May, 1961 be entitled to claim compensation in lieu of the continuance of the jagir for his life, and where the jagirdar makes such a claim the Jagir shall be deemed to be extinguished and resumed on the date on which such claim is made ; (b) in the case of the resumption and extinguishment of any hereditary parwarish or pension, any amount thereof recieved by the jagirdar after the 14th November, 1957 shall be deducted in computing the amount of compensation payable to him or his successor. (2) The amount of compensation payable under sub-section (8) shall be paid in cash either in one lump sum or such number of annual instalments not exceeding twenty, as the State Government may prescribe. (3) Where the amount of compensation is to be paid in instalments, interest at the rate of 2 per cent per annum to be calculated in the prescribed manner shall be payable thereon to the person entitled to receive the amount.