(1)Any debtor may, within one year from the date of commencement of this Act, make an application to the concerned Assistant commissioner that any transfer of immovable property made by him or any other person through whom he inherited it 16 was a transfer in the mortgage and the Assistant Commissioner, may, after such enquiry as he deems fit, if satisfied that the circumstances connected with the transfer showed it to be in the nature of mortgage, then, notwithstanding anything to the contrary contained in any law, custom or contract declare contained in any law, custom or contract declare such transfer to be a mortgage.
(2) When the Assistant Commissioner makes any such declaration, the applicant shall, notwithstanding anything contained in clause(6) of section 2, be deemed to be debtor and if it was incurred prior to the date of commencement of this act the debt covered under that mortgage shall be deemed to be wholly discharged and the provisions of sub-section (2) of section 5 shall mutatis mutandis apply for recording redemption of such mortgage and delivery of possession of such property.
(3) For the purpose of any enquiry under sub-section (1), the Assistant Commissioner may exercise all or any of the powers conferred on him under the Karnataka Land Revenue Act, 1964 and shall follow such procedure as may be prescribed.
(4) The order of the Assistant Commissioner shall subject to any order in revision under section 14 be final.
(5) Nothing in this section shall apply to.- 17
(i) A transfer which has been finally adjudged to be a transfer, other than a mortgage, by a competent court;
(ii) Any bony-fide transferee for value without notice of the real nature of such transfer or his representative;
(iii) Any transfer made prior to 1st March 1974;
(iv) A transfer in respect of which a proceeding is pending under section 23 of the Karnataka Agricultural Debtors Relief Act, 1966 (Karnataka Agricultural Debtors Relief Act, 1966 (Karnataka Act 29 of 1966), to declare that it is in the nature of a mortgage.