Compensation for period of possession

(1) As soon as may be after the date of taking possession of the land, the Collector shall make an inquiry in the prescribed manner and determine- (a) in respect of any land which on the said date was in the occupation of a tenant- (i) the annual rent payable by him; and (ii) the average net annual income, if any, after deducting the annual rent payable by him, derived by him during the three years immediately preceding the said date; and (b) in respect of any other land, the average net annual income, if any, without deducting any land revenue payable, derived by the owner during the three years immediately preceding the said date. (2) There shall be payable by the Government as compensation on the completion of every twelve months from the date of taking possession until the date referred to in sub-section (2) of section 31- (a) in respect of such land as is referred to in clause (a) of sub-section (1), the amount determined under sub-clause (i) of that clause to the owner and the amount determined under sub-clause (ii) thereof to the tenant; and (b) in respect of any other land, the amount determined under clause (b) of sub-section (1) to the owner.