(1) The compensation payable by the tenant determined under Section 28 shall be paid to his landlord where such landlord is a raiyat or a land-holder; or if the landlord not being raiyat or a land-holder holds any right under a raiyat then the raiyat and all such persons holding rights between the raiyat and the tenant shall be entitled to the compensation in respect of their rights in the land; and persons entitled to such compensation shall take it in proportion to the rent that each receives in respect of the land and the Revenue Officer shall, while proceeding under Section 28, determine each such share in such compensation.
(2) With effect from the date the tenant becomes a raiyat under Section 30 he shall hold the lands as such free from all encumbrances and the rights of all persons (not being Government or a land-holder) mediately or immediately under whom the land was being held shall stand extinguished and the encumbrances, if any, created by such persons in respect of the land shall thereafter attach to the other lands of the landlord.