Section 4 of The King of Oudh's Estate Validation Act, 1917
The sum referred to in section 3 and any further sums which the Governor General in Council may at any time declare to be surplus monies of the Sibtainabad Endowment Fund as he is hereby empowered to do, and all sums payable in respect of interest on the said share of the said Government Promissory Note accrued due since the 1st of January 1914, or hereafter to accrue due from time to time in respect thereof, are hereby declared to be pensions, and the said share of the said note is hereby declared to be a grant of money within the meaning of the Pensions Act, 1871 (XXIII of 1871), and that Act shall apply to such sums as if they were pensions of the classes referred to in sections 4 and 11 of the said Act and to the said share as if it was a grant of the class referred to in section 4 of the said Act, subject, however, to the following modifications, namely: --
- (i)any claim under section 5 of the said Act as applied shall be preferred to such officer as the Local Government may authorize in this behalf;
- (ii)the power of commutation conferred by section 10 of the said Act shall be exercisable without the consent of the holder where the payment to be made is at a rate less than a rate of rupee one per month; and
- (iii)the power to make rules conferred by sections 5 and 14 of the said Act shall extend to a power to make rules prescribing the persons or classes of persons to whom, and the principles on which, all distributions under this Act shall be made.
Summary
- It also declares that interest on the Government Promissory Note share since January 1, 1914, is considered a pension.
- Any claim under section 5 of that Pensions Act must be submitted to an officer chosen by the Local Government.
- The government can change a monthly pension into a lump-sum payment (called commutation) without the holder's consent if the pension pays less than one rupee per month.
- The power to make rules under sections 5 and 14 of the Pensions Act includes deciding who gets the money and how it is distributed.
Practical examples
FAQ
1. Where should a claim under section 5 of the Pensions Act be submitted?
It must be preferred to such officer as the Local Government authorizes.
2. Under what condition can a pension be changed into a lump sum without the holder's consent?
It can be changed without consent if the payment rate is less than one rupee per month.
3. What does the power to make rules under sections 5 and 14 of the Pensions Act extend to?
It extends to making rules that prescribe who receives the distributions and the principles on which the money is distributed.
Test yourself
Q1.What is the share of the Government Promissory Note declared to be under Section 4?
Q2.Which Act is applied to the sums and share of the note under Section 4?
Q3.To whom must any claim under section 5 of the Pensions Act, 1871, be preferred?
Q4.A pension can be commuted without the holder's consent if the monthly payment is less than what rate?
Q5.Interest on the Government Promissory Note share is declared to be a pension if it accrued due since which date?
Q6.The rules made under the authority of sections 5 and 14 of the Pensions Act, 1871, can prescribe what?