Section 13(2) in The Coal Bearing Areas (Acquisition And development) Act, 1957
(2)Where the rights under a mining lease are acquired under this Act, there shall be paid to the person interested compensation, the amount of which shall be a sum made up of the following items, namely,-(i)if the lease was granted after prospecting operations had been carried out in respect of the land under a prospecting licence, the sum of all items of reasonable and bonafide expenditure actually incurred with respect to the matters specified in clauses (i), (ii), (iii) and (iv) of subsection (1) before the date of the lease:Provided that where two or more leases had been granted in relation to any land covered previously by one prospecting licence, only so much of the expenditure aforesaid as bears to the total expenditure the same 77 proportion as the area under the mining lease in respect of which the rights have been acquired bears to the total area covered by the mining leases shall be payable under this clause ;(ii)any reasonable and bona fide expenditure of the nature referred to in clauses (i), (ii) and (iii) of sub,-section (1) actually incurred in relation to the lease, together with the salami if any, paid for obtaining the lease ;(iii)the expenditure, if any, incurred by way of payment of dead-rent or minimum royalty during any year or years when there was no production of coal;(iv)interest on any such expenditure referred to in clauses (i), (ii)and (iii) as has actually been incurred [up to] [Substituted by Act 51 of 1957, Section 6, for "during the period commencing from the date of the lease and ending with" (w.e.f. 12-6-1957)] the year in which the rights under the lease are acquired, interest being calculated in the following manner, that is to say,--interest at the rate of five per centum per annum in respect of the expenditure incurred during each calendar year for the first five years commencing from the year in which such expenditure was incurred plus interest at the rate of four per centum per annum in respect of each subsequent year after the expiration of the first five years and ending with the year in which the rights under the lease are acquired :Provided that the total sum payable under this clause shall not exceed one-half of the total amount referred to in [clauses (i), (ii) and (iii) ] [Substituted by Act 51 of 1957, Section 6, for "clauses (ii) and (iii)" (w.e.f. 12-6-1957)].
