(1) Notwithstanding anything contained in any Law for the time being in force, this Act shall, subject to the provisions of sub-section (2) apply to—
(a) a mortgage of immovable property with or without possession whether in writing and registered under [the Registration Act, 1908 (16 of 1908)] or not, in which principal money or the value of the goods actually advanced by the mortgagees to the mortgagor does not exceed ten thousand rupees and which is subsisting on the date this Act comes into force ; and
(b) a mortgage securing lone for purposes of building of a house-boat regardless of the amount of the principal money or the value of the goods actually advanced by the mortgagee to the mortgagor and which is subsisting on the date this Act comes into force.
Explanation 1.—Mortgage in clause (b) shall include pledging of a houseboat also.
Explanation 2.—In this sub-section the expression ‘value of the goods’ shall mean the value agreed upon by the parties and, where there is no such agreement, the value to be determined by the Tribunal according to the market rates prevailing at the time the goods were actually advanced.
(2) Nothing is this Act shall apply to—
(i) mortgage of lands for which provisions for redemption have been made in Jammu and Kashmir Agrarian Reforms Act, 1976 ;
(ii) mortgages held by the State Land Development Bank, or Land Development Bank as defined in the Jammu and Kashmir Cooperative Societies Act, 1960 [or any institution mentioned in section 4 (A) of the Jammu and Kashmir Alienation of Land Act, Svt, 1995] [x x x x] ;
(iii) mortgages held by or on behalf of [the Lieutenant Governor or the Government of the Union territory of Jammu and Kashmir] ;
(iv) mortgages held by or on behalf of President of India or the Government of India ; and
(v) mortgages held by or on behalf of such other institutions in the [Union territory of Jammu and Kashmir] as may be notified by the Government.
Explanation.— A mortgage shall be deemed to be subsisting notwithstanding decree or order for its redemption or foreclosure or sale or auction having been passed :
Provided that redemption or foreclosure of sale or auction as the case may be, has not taken place before the commencement of this Act.