Section 20: Provision relating to encumbrances on land vesting in the State Government.

(1) Where any encumbrances exist on land of a person vesting in the State Government, the total amount of acquisition payable under section 19 in respect of such land shall be utilized as follows, namely:- Firstly, in discharge of all dues in respect thereof outstanding in favour of the State Government; Secondly, in discharge of all encumbrances existing on lands vesting in the State Government priority being given to encumbrances existing in favour of co-operative societies including land development banks; Thirdly, in discharge of encumbrances existing on lands retained by such person towards the ceiling area applicable to him priority being given to encumbrances existing in favour of cooperative societies including land development banks, and Fourthly, balance, if any, shall be paid to such person. (2) If the total amount of encumbrances created by such person on his lands exceed the amount of acquisition payable to him under section 19, then:- (a) the encumbrances existing on lands retained by such person shall continue to attach to those lands; and (b) the portions of the encumbrances existing on lands vesting in the State Government under section 16 remaining undischarged out of the amount of acquisition, shall be recoverable by the encumbrance holder from the other property of such person.