(1) All service inam villages and service inam lands which have been adjudicated under rule 8 of Schedule B to the Bombay Rent-free Estates Act, 1852 (XI of 1852) are and shall be liable to the payment of land revenue in accordance with the provisions of the Code and the rules made thereunder and the provisions of the Code and the rules relating to unalienated lands shall apply to such villages and lands.
(2) In the case of service inam land to which sub-section (1) applies,-
(a) where such land is in possession of the holder or in possession of a person (other than an inferior holder) holding from him, the holder, and
(b) where such land is in possession of an inferior holder holding the same on payment of annual assessment only, such inferior holder,
shall primarily be liable to the State Government for the payment of land revenue due in respect of such land held by him and shall be entitled to all rights and shall be liable to all obligations in respect of such land as an occupant under the Code or the rules made thereunder or any other law for the time being in force.