38. Amount of compensation payable to a limited owner to be deposited with the Collector.
(1)The amount of compensation payable to a limited owner or the holder of a life-interest shall be kept in deposit with the Collector of the district for the period prescribed in sub-section (4) of Section 32, and the interest accruing on such amount shall be paid to the limited owner or the holder of the life-interest concerned at the direction of the Collector during such period.(2)Form N (18) - Form N (19). - The Compensation Officer shall keep the amount of compensation payable to a limited owner or the holder of a life-interest in cash and/or bonds under Rule 27 in deposit with the Collector of the district, the amount of compensation payable in cash being kept in Revenue deposit. The Compensation Officer will forward the Bonds, together with the copies of the challans showing such deposites, to the Collector of the district with a letter in Form N (18). On receipt of the Bonds and challans by the Collector, they will be entered in his office in "Register of Bonds and cash payable to limited owners or holder of life interest" in Form N (19). The Bonds and challans will then be kept in the double lock of the Treasury, where the same Register N(19) shall also be maintained. This Register will be kept along with the Bonds and challans in the double lock. There should be an annual verification of the Bonds and challans by a Gazetted Officer to be nominated by the Collector for the purpose.(3)Form N (20). - The Collector of the district will draw from the Treasury the Bonds for payment of interest, or the Bonds and or challans for payment of instalments, etc. when required under sub-rule (4), on a Requisition for Bonds and/or challans in Form N (20) and shall [along with application in Form N (20-A), on which the Treasury Officer will endorse an acknowledgement of receipt] [Inserted by Notification No. 339 L.R., dated 14.1.1960.] redeposit the same in the Treasury for safe custody after such payment. Payment of interest and instalments, if any, on such Bonds will be made in the manner laid down in Rule 35.(4)Where an application is made by a limited owner or the holder of a life-interest for payment of a part of the amount of compensation to defray any legal expenses under the proviso to sub-section (4) of Section 32, such payment shall not exceed the total amount of annual instalments due on the Bonds on the date of the order together with the amount of compensation in cash, if any, deposited with the Collector on behalf of such owner or holder.
