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THE LAND ACQUISITION ACT, 1894

Title : THE LAND ACQUISITION ACT, 1894

Year : 1894



(1) On making an award under section 11, the Collector shall tender payment of the compensation awarded by him to the persons interested entitlted thereto according to the award and shall pay it to them unless prevented by some one or more of the contigencies mentioned in the next sub-section.

(2) If they shall not consent to receive it, or if there be no person competent to alienate the land, or if there be any dispute as to the title to receive the compensation or as to the apportionment of it, the Collector shall deposit the amount of the compensation in the Court to which a reference under section 18 would be submitted;

Provided
that any person admitted to be interested may receive such payment under protest as to the sufficiency of the amount:

Provided
also that no person who has received the amount otherwise than under protest shall be entitled to make any application under section 18:

Provided
also that nothing herein contained shall affect the liability of any person, who may receive the whole or any part of any compensation awarded under this Act, to pay the same to the person lawfully entitled thereto.

(3) Notwithstanding anything in this section the Collector may, with the sanction of the appropriate Government instead of awarding a money compensation in respect of any land, make any arrangement with a person having a limited interest in such land, either by the grant of other lands in exchange, the remission of land-revenue on other lands under the same title, or in such other way as may be equitable having regard to the interests of the parties concerned.

(4) Nothing in the last foregoing sub-section shall be construed to interfere with or limit the power of the Collector to enter into any arrangement with any person interested in the land and (As to persons who are competent to contract, see s.11 of the Indian Contract Act, 1872 (9 of 1872).)competent to contract in respect thereof.



(1) If any money shall be deposited in Court under sub-section (2) of the last preceding section and it appears that the land in respect whereof the same was awarded belonged to any person who has no power to alienate the same, the Court shall,-

(a) Order the money to be invested in the purchase of other lands to be held under the like title and conditions of ownership as the land in respect of which such money shall have been deposited was held, or

(b) If such purchase cannot be effected forthwith, then in such Government or other approved securities as the Court shall think fit; and shall direct the payment of the interest or other proceeds arising from such investment to the person or persons who would for the time being have been entitled to the possession of the said land, and such moneys shall remain so deposited and invested until the same be applied-

(I) In the purchase of such other lands as aforesaid; or

(ii) In payment to any person or persons becoming absolutely entitled thereto.

(2) In all cases of moneys deposited to which this section applies the Court shall order the costs of the following matters, including therein all reasonable charges and expenses incident thereto, to be paid by the Collector, namely:-

(a) The costs of such investments as aforesaid;

(b) The costs of the orders for the payment of the interest or other proceeds, of the securities upon which such moneys are for the time being invested, and for the payment out of Court of the principal of such moneys, and of all proceedings relating thereto, except such as amy be occasioned by litigation between adverse claimants.



When any money shall have been deposited in Court under this Act for any cause other than that mentioned in the last preceding section, the court may, on the appliation of any party interested or claiming an interest in such money, order the same to be invested in such Government or other approved securities as it amy think proper, and may direct the interest or other proceeds of any such investment to be accumulated and paid in such manner as it amy consider will give the parties interested therein the same benefit there form as they might have had from the land in respect whereof such money shall have been deposited or as near thereto as may be.



When the amount of such compensation is not paid or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of six per centum per annum from the time of so taking possession until it shall have been so paid or deposited.


Last updated on June, 2016

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