(1) Where in pursuance of the additional condition mentioned in sub-section (2) of Section 10, any lease of mines or minerals is terminated by the State Government [in respect of whole or part of the area comprised in the lease, the lessee shall be entitled to such compensation from the State Government for such premature termination] as may be agreed upon between the State Government and the holder of the lease, or in default of agreement as may be determined by a Mines Tribunal appointed under Section 12.
(2) In determining the compensation payable under sub-section (1), the Tribunal shall, among other things, have regard to the genuineness of the transaction, and the period for which the lease has been in force.
[(3) Where the interest of lessee of mines or minerals passes on and vests in the State under Section 10A, the lessee shall, subject to sub-section (4), be entitled to such compensation from the State Government for his interest as may be agreed upon between the State Government and the lessee, or, in default of agreement, as may be determined by a Mines Tribunal appointed under Section 12.
(4) The amount of compensation payable to a lessee in respect of a lease the unexpired period of which is within the limits mentioned in column 1 of the following table shall be as many times of the net annual income which the lessee derives on account of the lease-hold property as is mentioned in the corresponding entry in column 2 thereof, namely :- Column 1 Column 2
(a) Does not exceed five years Onetime.
(b)Exceeds five years but does not exceed ten years.
Two times.
(c) Exceeds ten years but does not exceed twenty years.
Three times.
(d)Exceeds twenty years but does not exceed thirty years.
Four times.
(e) Exceeds thirty years but does not exceeds fifty years.
Five times.
(f) Exceeds fifty years but does not exceed eighty years.
Six times.
(g)Exceeds eighty years but does not exceed one hundred years.
Seven times.
(h)Exceeds one hundred years. Eight times.
Explanation. - For the purposes of this sub-section, the expression "net annual income" means the gross annual income of the lease-hold property minus the rents, royalties, taxes, cesses and other legal impositions payable annually by the lessee in respect of the lease-hold property and the mines or minerals comprised therein and the cost of collection at such rate as may be prescribed.]
CHAPTER VI Payment of Compensation