7. Method of compensation on abolition of rights under the kauli or katuban land.- (1) If the kaul-holder or any person claiming through or under him is aggrieved by any of the provisions of this Act as extinguishing or modifying any of his right in any property and if such kaul-holder or person proves that the extinguishment or modification amounts to transference to public ownership of his property, the kaul-holder or person may apply to the Collector for compensation.
(2) Such application shall be made in the form prescribed within six months from the date on which this Act comes into force.
(3) The Collector shall, after holding a formal inquiry in the manner provided by the Code, award such compensation as he deems reasonable and adequate :
Provided that, the amount of compensation for extinguishment of any right in any waste land which under the terms of the kaul or katuban lease was the property of the kaul-holder shall be the amount calculated at the rate of Rs. 25 per 100 acres of such land :
Provided further that, in the case of extinguishment or modification of any other right of a kaul-holder or the right of any other person the Collector shall be guided by the provisions of sub-section (1) of section 23 and section 24 of the Land Acquisition Act, 1894 (I of 1894).