(1) No claim shall be entertained for the resumption of a grant--
(a) in khalsa area, if such grant has been held from a date prior to 1818; or
(b) in any other part of the State, if such grant has been held from a date prior to 1874; or
(c) which is hereditary and was made out of personal regard for the grantee or in lieu of his past services and loyalty to the grantor and big family; or
(d) which is held unconditionally; or
(e) which is not resumable under the terms of the grant; or
(f) to a charitable institution or for the maintenance of a sacred building so long as such institution or building exists.
(2) A holder of a grant to which clause (a), (b), (c), (d) or (e) of sub-section (1) applies and who has continuously been in possession thereof for twenty-five years immediately before the commencement of this Act, may, on an application made within one year of such commencement and on payment of compensation adjudged under sub-section (3), be declared a biswadar of such grant and shall, on such declaration, be liable to pay such revenue as may be fixed thereon.
(3) The compensation to be paid under sub-section (2) shall be four times the annual rental value of such grant, calculated at sanctioned rates applicable to hereditary tenants.
(4) On a declaration being made under sub-section (2), the sub-tenant, if any, of such grant shall become a hereditary tenant thereof.
(5) When land revenue is fixed on a grant in respect of which a declaration is made, the proprietor of such grant shall as prescribed be entitled to claim reduction in the revenue payable by him by an amount equal to the amount of revenue fixed under sub-section (2).