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Award of compensation and extinguishment of rights thereby.– (1) When an application under section 25 is made, the Collector shall– (a) fix a day for the hearing of the application; (b) cause notice of the application, and of the day fixed for the hearing thereof, to be served on or proclaimed for the information of, all persons recorded as having rights in the land specified in the order made under sub-section (2) of section 124, and all other persons interested or claiming to be interested therein; (c) upon the day so fixed for hearing, or any day to which the hearing may be adjourned, inquire into the rights in the land and award compensation in respect of all rights found established therein to the persons severally entitled thereto; (d) inform the applicant of the aggregate amount of compensation so awarded and require him to deposit the amount with the Collector on or before a day to be fixed by him in that behalf: Provided that, notwithstanding anything contained in this sub-section, it shall be lawful for the Collector, in his discretion and at any time before an award of compensation thereon has been made, to reject such application. (2) In awarding compensation under sub-section (1), the Collector shall be guided by the provisions of section 23 and section 24 of the Land Acquisition Act, 1894 (Act I of 1894), so far as the same may be applicable to the circumstances of the case. The Punjab Land Revenue Act 1967 (XVII of 1967) 141 (3) On the fifteenth day of May next after the whole amount of compensation so awarded has been deposited with the Collector, the order made under sub-section (2) of section 124 shall cease to operate, and the rights specified therein shall be transferred and vest in the manner provided for in sub-section (1) of that section, and the Collector shall proceed to tender the compensation to the persons severally entitled to receive the same under his award. (4) If any such person as aforesaid refuses to accept the sum so awarded and tendered to him, it shall be placed to his credit in Government treasury. (5) When any order made under sub-section (2) of section 124 ceases, under the provisions of sub-section (3) of the said section, to operate, all rights reserved to any person by such order shall be extinguished.

Effective date: 1967-12-07

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