(1) Where under the terms of a public trust any interest either in the land in respect of which the public trust is created or in the income from such land is reserved in favour of the founder of such public trust, or of any other person, the authorized officer shall declare the extent of land which bears to the total extent of land in respect of which the public trust is crested, the same proportion as such interest bears to the total interest in such land or the income therefrom. The extent of the land so declared shall, with effect from the date of such declaration be deemed to be held by the founder or such other person and the provisions of this Act shall apply to the remaining extent of the land.
(2) The extent declared under sub-section (1) shall cease to be the trust property from the date of such declaration but shall be subject to any other liability that may be subsisting on such land:
Provided that the extent of such liability shall bear the same proportion to the entire liability as the extent so declared bears to the total extent.