Section 3 in The Bombay land Tenures Abolition (Amendment) Act, 1956
3. Amounts of arrears of land revenue etc., to be deducted from amount of compensation.
(1)Notwithstanding anything contained in any of the Land Tenure Abolition Acts, the amount awarded or otherwise payable by the State Government to any person, as compensation under the provisions specified in column 2 of the First Schedule of the Acts specified in column I thereof for the abolition, extinguishment or modification of the rights or interest of such person in property, shall be payable to such person subject to the deductions therefrom as provided in subsection (2).(2)From one-third of such amount, there shall be deducted and credited to the State Government, -(a)all amounts of arrears of land revenue, cesses or dues in respect of such property certified by the Collector to be due from such person for any period prior to the relevant date;(b)the whole or part of the amount of any loan advanced by the State Government together with interest thereon, if any, which is certified by the Collector to be due for repayment on the relevant date; and(c)the amount of the occupancy price, if any, payable by such person to the State Government under the relevant provisions of the Land Tenure Abolition Act applicable to such person.(3)The provisions of the preceding sub-sections shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force under which the amount to be deducted is recoverable.
