Section 337(i) in Bihar Board's Miscellaneous Rules, 1958
(i)Malikana or proprietary allowance is granted for estates of which the settlement is not made with the proprietors under Section 5 (2) of Regulation VII of 1822. This is fixed for the term of the settlement-(a) when tender of settlement is made to the proprietor and his offer is not accepted, in which case the malikana is calculated on the amount of his offer, and (b) when tender of settlement is made to the proprietor but the settlement is refused absolutely without any offer being made, in which case the net collections of the year immediately preceding form the basis of the calculation of the malikana. In both these cases also the amount of malikana is not dependent on collections. Malikana is fluctuating-(c) when, as contemplated by the last clause of Section 3, Regulation VII of 1822, it is considered inexpedient to offer the settlement to the proprietor,the malikana should then be not less than 5 per cent of the net amount realized by Government from the lands, vide Rule 617 (II) of the Bihar and Orissa Survey and Settlement Manual, 1927.
