Section 4 of The Chutia Nagpur Encumbered Estates Act, 1876
The Manager shall, during his management of the said immoveable property, receive and recover all rents and profits due in respect thereof; and shall, upon receiving such rents and profits, give receipts for the same. From the sums so received, he shall pay-- and pay therefrom the Government demand, First, the Government revenue, and all debts of liabilities for the time being due or incurred to Government; rent due to superior landlord, Secondly, in the case of under-tenures, the rent (if any) due to the superior landlord, in respect of the said property: annual sum for maintenance of holder of property and his heir, Thirdly, such annual sums as appears to the Commissioner requisite for the maintenance of the holder of the property, his heir, and their families: costs of repairs and improvements, Fourthly the costs of such repairs and improvements of the property as appear necessary to the Manager and are approved by the Commissioner: cost of management and the debt and liabilities, and the residue shall be applied in discharge of the costs of the management, and in settlement of such debts and liabilities of the holder of the property and his heir, as may be established under the provision hereinafter contained.
Summary
- The Manager is the only person authorized to collect rents and profits from the managed property.
- The Manager must provide formal receipts for any payments received.
- There is a specific order for how the collected money must be spent.
- First, the Manager must pay all taxes and debts owed to the Government.
- Second, if the land is held under another landlord, that landlord's rent must be paid.
- Third, the Manager must pay an annual sum for the living expenses (maintenance) of the owner and their family.
- Fourth, the Manager pays for necessary repairs and improvements approved by the Commissioner.
- Finally, any leftover money is used for management costs and to pay off the owner's other debts.
Practical examples
FAQ
1. Who gives out receipts for rent during management?
The Manager is responsible for receiving rents and giving receipts.
2. What is the very first thing the Manager must pay for?
The first priority is the Government revenue and all debts or liabilities due to the Government.
3. Can the owner's family get money for food and clothes?
Yes, the third priority for the Manager is to pay an annual sum for the maintenance of the owner, their heir, and their families.
4. Does the Manager decide how much the owner gets for living expenses?
No, the Commissioner determines the amount that appears requisite for maintenance.
5. When are the general debts of the owner paid?
Debts and liabilities are paid from the residue (leftover money) after government dues, superior rent, maintenance, repairs, and management costs are covered.
Test yourself
Q1.Under Section 4 of The Chutia Nagpur Encumbered Estates Act, 1876, what is the second priority for payments made by the Manager?
Q2.According to Section 4 of The Chutia Nagpur Encumbered Estates Act, 1876, whose approval is needed for the costs of repairs and improvements?
Q3.Under Section 4 of The Chutia Nagpur Encumbered Estates Act, 1876, what must the Manager do immediately upon receiving rents and profits?
Q4.Under Section 4 of The Chutia Nagpur Encumbered Estates Act, 1876, who determines the amount needed for the maintenance of the holder and their family?
Q5.Based on Section 4 of The Chutia Nagpur Encumbered Estates Act, 1876, where do the owner's private debts fall in the order of payment?
Q6.Combining Section 3 and Section 4 of The Chutia Nagpur Encumbered Estates Act, 1876, if a tenant pays rent directly to the landowner during management, is that payment valid?