The Displaced Persons (Compensation and Rehabilitation) Act,1954
Section 7. Determination of the amount of compensation
(1) On receipt of an application for payment of compensation together with the record of the case forwarded under Section 5, the Settlement Commissioner shall make an enquiry in such manner as may be prescribed and having due regard to the prescribed scales of compensation, the nature of the verified claim and other circumstances of the case, shall ascertain the amount of compensation to which the applicant is entitled.
(2) On ascertaining the amount of compensation to which an applicant is entitled under sub-section (1) the Settlement Commissioner shall deduct therefrom the following dues recoverable from the applicant, in the order of priority mentioned below :-
(a) the amount, if any, of the public dues recoverable from the applicant under Section 5;
(b) the amount, if any, payable to a banking company under section 6, and the amount, if any, of the prior charge declared under sub-section (3) of section 16 of the Displaced Persons (Debts Adjustment) Act,1951 (LXX of 1951) in respect of which any communication is received from tribunal under Section 52 of that Act;
(c) where any communication is received from any tribunal under Section 52 of the Displaced Persons (Debts (Adjustment) Act,1951) (LXX 1951) in respect of any unsecured debts, the amount of such debts, payable by the applicant in accordance with the provisions of that Act.
(3) After deducting the dues referred to in sub-section (2) the Settlement Commissioner shall make an order determining the net amount of compensation, if any, payable to the applicant.
(4) The amount, if any, deducted under sub-section(2) shall be paid to the person entitled to it.