Section 28(3) in The Orissa Estates Abolition Act, 1951
(3)In the case where the interest of an Intermediary is subject to a mortgage or charge on the estate or portion thereof, the compensation shall be payable to the creditor holding such mortgage or charge in such proportion as hereinafter provided in full satisfaction thereof and the balance shall be payable to the Intermediary concerned. The amount of compensation payable to the creditor on account of such mortgage or charge shall be the amount determined under Chapter IV, which notwithstanding anything contained in any law for the time being in force, shall not exceed-(i)fifty per centum of the compensation when the amount of such compensation is fifty thousand rupees or less;(ii)thirty per centum when the amount of such compensation is above fifty thousand rupees and if less than one lakh of rupees; and(iii)twenty per centum when the amount of such compensation is one lakh of rupees or above, and where there are two or more such creditors the compensation shall be payable to the body of creditors jointly in the aforesaid proportion,and in the order determined under the said Chapter.
