Section 13 in The Assam Fixation of Ceiling on Land Holdings Act, 1956
13. The manner of payment of compensation.
(a)The compensation may be paid in cash in one or more equal annual instalments within 5 years from the date of acquisition :Provided that where the full amount of compensation is not paid within six months of the date of acquisition, interest at the rate of 2-½ per cent per annum shall be payable on the unpaid balance of the compensation.(b)(i)Where the land acquired is subject to a mortgage or charge the creditor shall be paid out of the compensation money to the extent of the claim proved before the Collector or any other officer empowered in this behalf :Provided that where the amount of total claim exceeds the compensation money, the creditors shall be paid proportionately in order of priority determined by him.(ii)The creditors whose debts are secured by mortgage Or charge on the land acquired shall, within 60 days from the date of notification under Section 8, prefer claim in writing before the Collector who shall thereupon proceed with and dispose of the claim.(iii)In case of dispute as to the person or persons who are entitled to be paid out of the compensation money, the amount shall be kept in deposit in a Government Treasury and the dispute shall be referred to the Civil Court of competent jurisdiction and the amount shall then be paid in terms of the final decision of the Court.
