40Acquisition of proprietary right by tenant

(1) If a tenant, other than a non-occupancy tenant, desires to acquire proprietary right in his holding, he may apply, in the prescribed form, to the collector for acquisition of such right:

Provided that no such application shall lie in respect of a part of a holding.

(2) On receipt of application under sub-section (1), a notice shall be served on the landlord and a copy thereof shall be affixed in a prominent place in the village, stating that the tenant of such holding has applied for an order of acquisition, and that the landlord or any other person interested in such proceeding may file any objections within one month of the affixation of such notice.

(3) The collector, after deciding the objections filed, shall, if he finds the applicant entitled to acquisition, assess the amount of--

(a) compensation on account of the holding which shall be twelve times the annual rental value of such holding, calculated at sanctioned rates applicable to hereditary tenants;

(b) compensation for any improvement, if any, made by the landlord on such holding; and

(c) the revenue payable on such holding in the manner prescribed; and

pass an order that, on payment of such compensation within the period allowed by the collector, the tenant shall become the biswadar of his holding and shall be liable to pay the revenue assessed thereon.

(4) After the decision of the case, the collector shall submit the record of the case for confirmation of the order passed by him to the Chief Commissioner.

(5) The landlord shall, after the tenant has become biswadar, be entitled to claim reduction in the revenue payable by him as prescribed.