(1)(a) Where any surplus land acquired under the provisions of this Act is subject to a mortgage or charge subsisting on the date of the acquisition, the mortgagee or the charge holder shall, where the amount due to him or part thereof can be fixed by agreement, be paid such amount or part.
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(b) Where no such agreement can be reached, the mortgagee or the charge holder shall within + [thirty] days from the date of the acquisition, prefer a claim in such manner as may be prescribed before the authorised officer who shall, subject to the provisions of sub-section (3), decide the claim in such manner as may be prescribed and record the reasons for the decision.
(2) Where there are more claimants than one, the authorised officer shall settle the order in which each claimant is entitled to receive the amount due to him, and in doing so he shall be guided by the appropriate provisions of the Transfer of Property Act, 1882 (Central Act 4 of 1882).
(3) Where in the opinion of the authorised officer the decision of a claim under sub-section (1) or sub-section (2) involves a substantial question of law or of fact, he shall, for reasons to be recorded in writing, refer the claim to the Land tribunal for decision.
(4) If the amount of claim allowed to the mortgagee or the charge holder by the authorised officer exceeds the amount payable under section 24, the entire amount shall be paid to the mortgagee or the charge holder, as the case may be, and the balance may be recovered by the mortgagee or the charge holder in accordance with law for the time being in force.
Claims of limited owner on surplus land