Land Act, 1927

Provisions as to arrears of rates.

18.—(1) In any case where untenanted lands become vested in the Land Commission under the provisions of the Land Act, 1923 , all poor rates and other rates made or assessed in respect of such lands for the financial year current on the appointed day shall be apportioned up to that day such rates to be considered as accruing from day to day for the purpose of this provision, and the Land Commission or any persons in occupation of the lands as allottees or purchasers from them shall be liable only for the portion thereof apportioned in respect of the period between the appointed day and the end of the current financial year but shall not be liable for arrears of rates made or assessed in respect of the lands for the then current or any previous financial year.

(2) In every such case the owner or occupier of the lands prior to the appointed day shall be liable for the portion only of the rates made or assessed for the current financial year apportioned in respect of the period between the beginning of that year and the appointed day.

(3) The portions of any rates which shall become payable under the provisions of this section shall and may be collected and levied and sued for and recovered by such and the same ways and means from the person liable therefor under this section as the entire rate might have been collected, levied, sued for and recovered if this section had not been passed.

(4) In every such case where the interest on the purchase money is not available for the payment of the difference between the amount for which the Land Commission or any persons in occupation of the land as allottees or purchasers from them are made liable by sub-section (1) of this section and the total amount which would but for the provisions of the said sub-section have been legally recoverable from them in respect of rates and arrears of rates if proceedings for the recovery thereof had been instituted against them on the appointed day, there may be paid out of the purchase money in priority to all other claims affecting the same a sum not exceeding the amount of such difference. Every such payment shall be made by the transfer of land bonds equal in nominal value to the sum made payable by this sub-section and such payment shall be deemed to be satisfaction to the extent of the amount of the nominal value of the land bonds so transferred.

(5) In every case where a holding or part of a holding is resumed by the Land Commission in pursuance of their powers in that behalf, the provisions of the foregoing sub-sections shall apply with the substitution of “the day on which the Land Commission enter into occupation” for “the appointed day.”

(6) All land bonds transferred under this section in discharge of rates shall be forthwith sold by the rating authority to which the same shall have been transferred and the proceeds thereof paid into the appropriate fund to be applied to the like purposes as the rates and arrears of rates, in respect of which the land bonds were transferred, would have been applied if paid to the rating authority in cash.