(1) Where any transferee makes any default in the payment of any consideration money or installment thereof or any other amount due on account of the transfer of any site or building under section 3 or of any rent due in respect of any lease, or where any transferee or occupier makes any default in the payment of any fee or tax levied under section 7, the Estate Officer may direct that, in addition to the amount of arrears, a sum not exceeding that amount, to be determined by him shall be recovered from the transferee or occupier, as the case may be, by way of penalty.
(2) In the case of any default in the payment of an amount payable under this Act, the outstanding amount in default, together with any sum, if any, directed to be paid by way of penalty under sub-section (1), may be recovered from the transferee or occupier, as the case may be, in the same manner as an arrear of land revenue.