(1) The landholder of any land, in respect of which any 1[contribution]1 is payable, shall pay it in the manner prescribed either by surrendering to the Government a portion of his land the value whereof is equal to the amount of 1[contribution]1, or in cash, or partly by surrendering land and partly in cash.
1. Substituted by Act 13 of 1966 w.e.f. 1.9.1960.
(2) Where the landholder chooses to pay the whole or part of the 1[contribution]1 by surrendering land, the surrender shall be subject to the following conditions:—
1. Substituted by Act 13 of 1966 w.e.f. 1.9.1960.
(a) the value of the land offered for surrender shall, for the purpose of payment of 1[contribution]1, be determined by the 2[Deputy Commissioner]2 in the prescribed manner;
1. Substituted by Act 13 of 1966 w.e.f. 1.9.1960.
2. Substituted by Act 23 of 1961 w.e.f. 16.11.1961.
(b) the owner of the land shall prove to the satisfaction of the 1[Deputy Commissioner]1 that such land is free from all encumbrances; the 1[Deputy Commissioner]1 shall notify the proposed surrender and invite objections in such manner and within such period as may be prescribed; if any objection is received and the 1[Deputy Commissioner]1 is satisfied that the land is not free from encumbrance, he shall refuse to accept the surrender and shall recover the contribution in cash; if no objection is received and the 1[Deputy Commissioner]1 is satisfied that the land is free from encumbrance, he shall by order in writing accept the surrender and after such acceptance, the land shall vest in the Government free from all encumbrances and the Government may dispose of it in such manner as it deems fit:
Provided that the 1[Deputy Commissioner]1 may on the ground of inaccessibility or inconvenient location of the land or such other grounds as may be prescribed refuse to accept the surrender.
1. Substituted by Act 23 of 1961 w.e.f. 16.11.1961.
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(3) The Government may by general or special order direct that in respect of any work, or class of cases the 1[contribution]1 shall be payable only in cash and not by surrendering land.
1. Substituted by Act 13 of 1966 w.e.f. 1.9.1960.
(4) Where the 1[contribution]1 is payable in cash, it shall be payable in such number of annual instalments not exceeding twenty and at such times as may be prescribed:
Provided that if, on or before the date on which the first instalment is payable, or at any subsequent date within a period of two years from that date, the owner pays the entire 1[contribution]1 or the balance of 1[contribution]1, as the case may be, he shall be entitled to a rebate of ten percent of such 1[contribution]1 or balance of 1[contribution]1, as the case may be:
Provided further that if the amount of 1[contribution]1 falls into arrears, interest shall be payable at the prescribed rate on the amount of such arrears.
1. Substituted by Act 13 of 1966 w.e.f. 1.9.1960.