(1) If any land which immediately before it vests in the Government under section 3 was subject to a motica^p, other than a mortgage with possession, or other encumbrance s^d the occupancy rights in respect of such land are deemed to have hoen granted under section 4 to the mortgagor or oth"r encumbrancer, then, save as otherwise provided in sub-section (2), such m o r t i c e or other encumbrance f-'hall again attach itself on tho !and nnd the mortgagee or the holder of the other encumbrance, as the case mav be. shall exercise his rights accordingly..
(2) Where in respect of anv land, occupancy rights are deemed to, have been granted under section 4 to a mortgagee in possession of such land, the liability of t.ho mortfJacnr to renav th'.' mortgage money advanced by the mortgage in po^f^ion of such land, ?h.all stand extinguished, 6»C. 1] THE GAZETTE OF INDIA EXTRAORDINABY 477
CHAPTER III CEILING ON POSSESSION OF LAND
7. Nothing contained in this Chapter shall apply to the following classes of land, namely: —
(a) land which is not used or capable of being used for the purpose of agriculture;
(b) land belonging to or held by the Central Government or any- State Government;
(c) land belonging to or held by a corporation, including a company, owned or controlled by the Central Government or any State Government;
(d) land belonging to a local authority or held on lease by or from such authority;
(e) land held or leased by a Land Mortgage Bank; and
(f) land held by a farming society.
8- The ceiling area of land for the purposes of this Regulation shall be 10 hectares.