(1) Where any excess land of a landowner is in his actual possession, the excess land shall vest in the Government.
(2) Where any excess land of a landowner is in the possession of a person holding the same as a tenant or as a mortgagee and the excess land together with any other land held by such person exceeds his ceiling limit, the land in excess of the ceiling limit shall vest in the Government.
(3) Where any excess land of a landowner is in the possession of a person holding the same as a tenant or as a mortgagee and such person is allowed to retain the excess land or a part thereof as being within his ceiling limit, that person shall acquire the rights of the landowner or of the mortgagor, as the case may be, in respect of such excess land or part thereof on payment of compensation, if any, as hereinafter provided, but if that person refuses to pay such compensation, the excess land or part thereof shall vest in the Government.
(4) Where there is any excess land of a tenant or of a mortgagee with possession, the excess land shall vest in the Government:
Provided that, in any case where the excess land or any part thereof held by a person as landowner or mortgagor together with any other land held by such person does not exceed the ceiling limit, the excess land or such part thereof as does not exceed the ceiling limit shall be restored to the possession of that person on an application made by him in this behalf to the competent authority within such time as may be prescribed and in the case where the possession of such land is restored to the mortgagor, the mortgage in respect of such land shall be deemed to be a simple mortgage.