Realization of Revenue from Malguzars.Central

Section 100 of The Central Provinces Land-Revenue Act, 1881

The surplus profits of such land, after defraying the cost of attachment and management, shall be applied, first, to the payment of any revenue becoming due in respect of such land during the attachment; and next, to discharging the arrear for the recovery of which the attachment was made.

Summary

This provision dictates the strict order in which surplus profits from attached land must be spent.
It specifies that the costs of attachment and management must be paid first before any profits are considered surplus.
The first priority for surplus profits is to pay any new land revenue that becomes due during the time the land is attached.
The second and final priority for surplus profits is to pay off the original unpaid debt that caused the land to be attached in the first place.

Practical examples

1In 1885, farmer Ram has his land attached because he owes 50 rupees in back taxes. His land produces 120 rupees in profit this year. The government agent takes 20 rupees for management costs. From the remaining 100 rupees of surplus, 40 rupees pays this year's new tax bill, and the final 60 rupees clears the original 50 rupee debt, with 10 rupees left over.

2A large estate managed by a government agent in 1888 generates 500 rupees in total profit, but management costs are 100 rupees and the new annual revenue bill is 400 rupees. The entire 400 rupees of surplus goes to the new revenue bill, leaving absolutely nothing to pay down the original debt that caused the attachment.

FAQ

1. How are land profits used under Section 100 of The Central Provinces Land-Revenue Act 1881?

Under Section 100 of The Central Provinces Land-Revenue Act 1881, profits first pay management costs, then current revenue coming due, and finally the original unpaid arrear.

2. Does the original debt get paid first under Section 100 of the 1881 Act?

No, Section 100 of the 1881 Act states that the current revenue due during the attachment must be paid before the original arrear is discharged.

3. What happens to management costs under Section 100 of the 1881 Land-Revenue Act?

Section 100 of the 1881 Land-Revenue Act dictates that the costs of attachment and management are deducted first before any surplus profits are applied to revenue or arrears.

Test yourself

Q1.Under Section 100 of The Central Provinces Land-Revenue Act 1881, which of the following is paid first from the surplus profits of attached land?

Q2.How does Section 100 of the 1881 Land-Revenue Act handle the cost of attachment and management?

Q3.Under Section 100 of The Central Provinces Land-Revenue Act 1881, what is the final priority for applying surplus profits?

Q4.If the surplus profits are not enough to cover the current revenue under Section 100 of the 1881 Act, what happens to the original arrear?

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