(1) The Mamlatdar shall in an inquiry held under section 18C, determine any encumbrances lawfully subsisting on the land on the tillers’ day.
(2) If the total amount of the encumbrances is less than the purchase price determined under that section,—
(i) where the purchase price is paid in lumpsum, it shall be deducted from the purchase price and the balance paid to the former landlord;
(ii) where the purchase price made payable in instalments, the Mamlatdar shall deduct such amount from such instalments towards the payment of such encumbrances:
Provided that where under any agreement, award, decree or order of a court or under any law, the amount of the encumbrances is recoverable in instalments, the Mamlatdar shall deduct such amount as he deems reasonable from the instalments so payable.
(3) If the total amount of the encumbrances is more than the amount so determined, the purchase price in lumpsum or the instalments, as the case may be, shall be distributed in the order of priority and if any person has a right to receive maintenance or alimony from the profits of the land the Mamlatdar shall also make deductions for payment out of the purchase price.
(4) Nothing in this section shall affect the rights of the holder of any such encumbrance to proceed against the former landlord in any other manner or under any other law for the time being in force.