Section 25 in Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961
25. Claims of mortgagee or charge-holder on surplus land.
(1)Where any land acquired or deemed to be acquired by the State Government, under the provisions of this Act is subject to a mortgage or charge subsisting on the date of the acquisition, the mortgagee or the charge-holder shall, unless the claim is amicably settled, prefer within ninety days of the acquisitions, a claim in prescribed manner before the Collector and the Collector shall thereupon proceed with and decide the claim in the prescribed manner and record the reasons for the decision.(2)(i)If the Collector is unable to decide the claim, he shall, by an order, refer the claimant to a Civil Court of competent jurisdiction and when such order is made the compensation payable in respect of the land under Section 24 shall be kept in deposit in a Government Treasury to be paid in accordance with the final decision of the Civil Court.(ii)Where there are more claimants than one, the Collector or the Civil Courts as the case may be, shall settle the order in which each claimant is entitled to receive the amount due to him, and in doing so it shall be guided by the appropriate provisions of the Transfer of Property Act, 1882 (IV of 1882).(3)If the amount of claim allowed by the Collector or the Civil Court, as the case may be, exceeds the amount of compensation payable under Section 24, in respect of the land, the mortgagee or the charge-holder shall be entitled to realise from the executant of the instrument of the mortgage charge or from his legal representative only y-x/y of the deficit and remaining x/y of the deficit shall be borne by the mortgagee or charge-holder.Explanation. - In this sub-section 'y' stands for the total area of land, including the mortgaged or charged land in question; held by the executant of the instrument or his legal representative any where in the State on the date of commencement of this Act and 'x' stands for the mortgaged or charged land in question.
