Section 11 of PMP Act : Section 11: Deposit And Payment Of Compensation

Explanation using Example

Imagine a situation where the government has decided to build an oil pipeline through Mr. Sharma's farmland. Under the Petroleum and Minerals Pipelines Act, the government is required to compensate Mr. Sharma for the right of user in his land. After the compensation amount is determined under section 10, the government must deposit this amount with the competent authority within a prescribed time.

If the government fails to deposit the compensation within this time frame, it will have to pay interest at a rate of six percent per annum from the due date of deposit to the actual date of deposit. In Mr. Sharma's case, if the amount is not deposited on time, this interest will accrue.

Once the compensation is deposited, the competent authority will pay Mr. Sharma the amount he is entitled to. However, if there are other parties, like Mr. Sharma's relatives, who also claim a right to the compensation, the authority will decide who is entitled to the compensation and in what proportion.

If there is any disagreement over how the compensation should be divided, or who should receive it, the matter will be referred to the District Judge for a final decision. For instance, if Mr. Sharma's sister contests the apportionment, the District Judge will resolve this dispute.