Report No. 10
Investment of Moneys Deposited
23. Investment of money deposited in respect of amounts belonging to persons incompetent to alienate.-
(1) If any money is deposited in court under section 55, or where any money is deposited in court under sub-section (2) of section 13 and it appears that the land in respect whereof the same was awarded belonged to a person who had no power to alienate the same, the court shall-
(a) order the money to be invested in the purchase of other lands to be held under the like title and conditions of ownership as the land in respect of which such money shall have been deposited was held, or
(b) if such purchase cannot be effected forthwith, then in such Government or other approved securities as the court shall think fit;
and shall direct the payment of the interest or other proceeds arising from such investment to the person or persons who would for the time being have been entitled to the possession of the said land, and such moneys shall remain so deposited and invested until the same be applied-
(i) in the purchase of such other lands as aforesaid; or
(ii) in payment to any person or persons becoming absolutely entitled thereto;
[Section 32(1), L.A.A.]
(2) Where, by virtue of the provisions of clause (b) of sub-section (1), any money is required to be invested in the purchase of securities referred to therein, and, before the money is so invested, any person or persons become absolutely entitled thereto, the court may, notwithstanding anything contained in sub-section (1), pay such money to such person or persons.
(3) In all cases of moneys deposited to which this section applies, the court shall order the costs of the following matters, including therein all reasonable charges and expenses incident thereto, to be paid by the Collector, namely-
(a) the costs of such investments as aforesaid;
(b) the costs of the orders for the payment of the interest or other proceeds, of the securities upon which such moneys are for the time being invested, and for the payment out of court of the principal of such moneys, and of all proceedings relating thereto, except such as may be occasioned by litigation between adverse claimants.
[Section 32(2), L.A.A.]