( I) Where ownersh1p or possessiOn or both of any land JS surrendered by, or assumed from, a person or is vested m the Government under section 86 or sectiOn 87, such person shall be ent1tled to compensatiOn.
Where the nghts of an intermediary are extingmshed, such mtermediary shaiJ also be entitled to compensation.
(2) The compensation payable to an owner for the surrender or assumpt1on of ownership and possess1on of land shall be fifty-five per cent of the market value of the land and improvements, if any, thereon.
(3) The compensation payable to the landowner, intermediary, or cult1vatmg tenant for the surrender, assumptiOn, vesting in the Government or extmguishment of the1r nghts shall be the portion of fift) ·five per cent of the market value of the land and the improvements, if any, thereon that will fall to his share if such value were apportioned among the landowner, cultivating tenant and intermed1ary, if any, m respect of the land, accordmg to the following provisions :-
(t) the portion of the compensatiOn for any budding or other improvements shall be set apart to the person to whom such building or other improvement belongs ;
( 11) ninety per cent of the portion of the compensation for the s1te of any homestead or hut m the occupation of a kudikidappukaran shall be deducted from the total amount of compensation ,
(tu) the balance remaining after deducting the amounts referred to in clauses (t) and (tt) shall be apportiOned among the land owner, the mtermed1aries and the cultivating tenant in p10portion to the profits derivable by them from the land Immediately before the sun ender, assumption or vestmg in the Government, as the case may be.
Explanatton.-" p, ofits derivable from the land " shall be deemed to be equal to (z) in the case of a landowner, the rent which he was entitled to get from the tenant holding JmmedJatcly under him; (ti) m the case of an intermediary, the difference between the rent which he was entttled to get from h1s tenant and the rent for which he was liable to his landlord, and (m) in the ca~e of a cultivating tenant, the d1fference between the net income and the rent payable by him , and the rent payable by the cultivatmg tenant and the intermediary for the purposes of this explanation shall be as calculated under the provisions of this Act ( 4) Where a mortgagee in po~session surrenders possession of the land mortgaged to hlm,-
(i) where the ownership of the land mortgaged has been surrendered by the owner of the land, the mortgagee shall Le treated as ~I -----------------------' \ 57 a holder of an encumbrance m respect of the land, and the encum· brance shall be discharged as provided in sections 91 and 92 ;
(it) in other cases, the Government shall pay to the mortgagee the amount to wh1ch he would have been entitled under clause (t) if the ownership of the land mortgaged had been surrer.dered to the Govern ment, and hold the land as mortgagee with pos>ession w1th all the rights and liabilities of the mortgagee.