Section 12 in Tamil Nadu Land Reforms (Payment for Surplus Land) Rules, 1966
12. Conditions subject to which amount payable under section 53 is to be kept in deposit with the District Collector.
(1)In cases falling under section 53 the cash portion of the amount, as soon as it is deposited with him, and each of the annual instalments of the principal due on the bonds, as soon as it is cashed, shall be invested by the District Collector in Government guaranteed security. The interest portion of each annual instalment and interest accruing on the investments made, shall till the death of the maintenance-holder or till the right to receive maintenance ceases to exist or till the liability to pay maintenance is discharged be drawn by the District Collector and paid in the manner laid down below:-(i)Out of the interest, that amount which bears to the total amount of interest the same proportion as the extent of the interest of the maintenance-holder in the annual net income from the surplus land bears to the total annual net income from such land, shall be paid to the maintenance-holder. In determining the amount of interest payable to the maintenance-holder under this sub-rule, the District Collector shall give effect to the terms of any decree for maintenance or the terms of any instrument creating a charge on such surplus lands for payment of maintenance to the maintenance-holder concerned.(ii)The balance of the interest shall be paid to the person from whom the surplus land was acquired, or the person denying rights through such person, as the case may be.(2)If the maintenance-holder dies or the right to receive maintenance ceases to exist or the liability to pay maintenance is discharged, the District Collector shall endorse the compensation bonds or the security bonds or both in favour of the person from whom the surplus land was acquired or the persons deriving rights through such persons, as the case may be.[Explanation. - Where the amount is payable in cash, the amount payable in a single instalment or with the first instalment, other than the interest referred to in clause (b) of sub-rule (3) of rule 3, shall be dealt within the same manner as the cash portion of the amount. The annual instalments of principal and interest as well as the interest referred to in clause (b) of sub-rule (3) of rule 3, be dealt with in the same manner as instalment of principal and interest due on the bonds.] [Explanation to rule 12 by SRO A-41/78 - G. O. Ms. No. 186, Revenue (L. Ref. I), dated the 27th January 1978.]
