Section 3 of Bom. 40 of 1956 reads as under : — — (ABOLITION) ACT

2 Section 3 of Bom. 40 of 1956 reads as under : — " 3. Amounts of arrears of land revenue, etc., to be deducted from amount of compensation . — (1) Notwithstanding anything contained in any of the Land Tenure Abolition Acts, the amount awarded or otherwise payable by the State Government to any person, as compensation under the provisions specified in column 2 of the First Schedule of the Acts specified in column I thereof for the abolition, extinguishment or modification of the rights or interest of such person in property, shall be payable to such person subject to the deductions therefrom as provided in sub -section (2). (2) From one-third of such amount, there shall be deducted and credited to the State Government,— (a) all amounts of arrears of land revenue, cesses or dues in respect of such property certified by the Collector to be due from such person for any period prior to the relevant date; (b) the whole or part of the amount of any loan advanced by the State Government together with interest thereon, if any, which is certified by the Collector to be due for repayment on the relevant date ; and (c) the amount of the occupancy price, if any, payable by such person to the State Government under the relevant provisions of the Land Tenure Abolition Act applicable to such person. (3) The provisions of the preceding sub-sections shall be in addition to, and not in derogation of the provisions of any other law for the time being in force under which the amount to be deducted is recoverable " . 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) .

Section 2