(1) Government shall pay to every Jenmi other than a religious or charitable institution of a public nature whose right to receive payment of Jenmikaram has been extinguished, compensation according to the scales specified in the Schedule. In computing the compensation payable, 2½ per centum shall be deducted from the Jenmikaram for collection charges and the balance alone shall be multiplied as provided for in the Schedule. The amount of compensation determined according to the scale specified above shall be deemed to have accrued due from the appointed day 1[and, subject to the provisions of section 13A, interest thereon shall be payable] at the rate of 4 per centum per annum from the appointed day till the date of payment of compensation in case the amount of compensation is paid in cash or till the date of redemption of the bonds, if compensation is paid in Government bonds.
(2) Where the jenmi whose right to receive payment of jenmikaram has been extinguished is, at the commencement of this Act, a religious or charitable institution of a public nature, Government shall, by way of compensation, pay to the institution every year an amount equal to the balance arrived at after deducting from the jenmikaram which such institution was entitled to receive immediately before the commencement of this Act, two and a half per cent of such jenmikaram towards collection charges.
(3) If any question arises as to whether an institution is a religious or charitable institution of a public nature it shall be decided by such authority as may be prescribed.