The Displaced Persons (Compensation and Rehabilitation) Act,1954
Section 8 A. Payment of Compensation case of mortgaged properties
(1) Where any compensation is payable to any displaced person in lieu of property abandoned by him in West Pakistan which on the date of his migration from West Pakistan was subject to a mortgage is in favour of a person who is not resident in India, the Settlement Commissioner shall after giving a reasonable notice to the displaced person, determine the principal sum for which the property was so mortgaged and such portion of the principal sum so determined as bears the same proportion as the compensation payable to the displaced person bears to the value of verified claim of the displaced person in respect of that mortgaged property shall be deductible from the compensation payable in respect of the mortgaged property :
Provided that where compensation has been paid to any displaced person without such deduction having been made, the displaced person shall pay to the Central Government the amount of such deduction within three months of the determination thereof or such longer period as may be prescribed;
Provided further that where compensation has been paid to any displaced person by sale or any other mode of transfer to him of any property from the compensation pool the displaced person may, within the aforesaid period of three months or, as the case may be, within the aforesaid prescribed period
(a)either retain the property on his paying in cash the aforesaid amount.
or
(b)surrender a portion of that property of a value equivalent to the amount of such deduction, such value being determined by the Settlement Commissioner in the prescribed manner.
(2)If any displaced person fails to pay any amount which is liable to be deducted from his compensation under sub-section (1), or fails to surrender the property of the value equivalent to such amount, such amount may be recovered in the same manner as an arrear of land revenue.
Section 8A-COMMENTARY
Ss.8A Inserted section gives an option to the displaced person either to retain the property on paying cash redemption amount deductible from compensation or to surrender the part of the property And or failure to pay, the amount is made recoverable as land revenue Held Provision no where speaks of automatic cancellation of the allotment made in favour of displaced person on account of non-payment of mortgaged money Managing Officer was not vested with the power to cancel the allotment (in 1960) Recovery could be made by selling the property; Dalip Singh v. The Financial Comm. Cum Sec. To Govt. Haryana Rehabilation Dept.: 1996(1) All India Land Laws Reporter (P & H) 117
The Displaced Persons (Compensation and Rehabilitation) Act,1954
