(1) An under-raiyat who has made any improvement at his own expense on the land leased to him shall, if he is to be evicted under the provisions of this Chapter, be entitled to receive compensation, before he is so evicted, for such improvement as, in the opinion of the competent authority, is reasonable.
     (2) The compensation payable to an under-raiyat under sub-section (1) shall be determined in accordance with the value of such improvements on the date of eviction, and in determining such compensation, regard shall be had to the following matters, namely:--
         (a) the amount by which the value of the land has increased by reason of the improvement;
         (b) the condition of the improvement at the date of the determination of the value thereof and the probable duration of its effect;
         (c) the labour and capital involved in the making of the improvement; and
         (d) the advantages secured by the under-raiyat in consideration of the improvement made by him.
     (3) In any case in which compensation is payable to an under-raiyat under this section, the competent authority may direct that--
         (a) the whole or any part of any loan which the under-raiyat has taken on the security of his interest in the land under section 109 and which is outstanding shall be deducted from such compensation and paid to the Government or the co-operative society, as the case may be;
         (b) any arrear of rent due by the under-raiyat to the raiyat and the costs, if any, awarded to the raiyat shall be adjusted against the compensation.