(1) The allotment of any land or premises requisitioned or continued under requisition under this Act by the State Government to any person or the continuance of any person or the permission to any person to continue to remain in occupation or possession of such land or premises shall be deemed to be a licence in favour of such person for the use and occupation of such land or premises.
(2) If any person to whom such land or premises are allotted by the State Government fails to pay to the State Government any sum which he is liable to pay under the terms and conditions, subject to which such land or premises are allotted to him, or if any person who continues or is permitted to continue to remain in occupation or possession of such land or premises fails to pay any amount of compensation, which the State Government determines as the amount payable by him for such occupation or possession, then any such sum or amount due, whether before or after the commencement of the Bombay Land Requisition and Bombay Government Premises (Eviction) (Amendment) Act, 1980 (Mah. XXXV of 1981), shall without prejudice to any other mode of recovery, be recovered from him or any person for the time being in occupation or possession of such land or premises as an arrear of land revenue.