15. Estate in possession of a mortgage with possession. –
(1) A mortgage in possession of an estate or share therein shall cease to have any right in such estate or share, if the proprietor mortgagor deposits the mortgage money together with interest thereon in Government Treasury and applies for redemption of the mortgage in the proper court, within a period of nine months from the commencement of this Act.
(2) [(Note: Subs. by s.7 of Central Act 4 of 1959 for the original sub-section) If the proprietor mortgagor deposits the amount and applies for redemption as provided in sub section (1), he shall be declared as Bhumidhar in respect of the mortgaged area which was under the personal cultivation of the mortgage on the date of such application for redemption, and if any part of the mortgaged area was on the said date let out to a tenant , such tenant shall be declared as Bhumidhar in respect of the area that was so let out to him.]
(3) Where the proprietor mortgagor fails to take action under sub section (1) within the time specified therein, the mortgage of the area mortgaged with possession, (Note: The words “whether or not it was the Sir or Khudkasht of the mortgagor on the date of the mortgage” rep. by s.7 of Central Act 4 of 1959) shall be declared as the Bhumidhar of so much of the area mortgaged as is under the personal cultivation of the mortgage.
(4) Where the area mortgaged or part thereof is let out to tenants, the mortgage shall be declared as the Bhumidhar of the part under his personal cultivation and the tenants shall be declared as Bhumidhars of their respective areas let out to them.
(5) Subject to section 11 or 13 the provisions of sub section (1) to (4) shall apply mutatis mutandis to mortgages with possession where the mortgagors were –
(a) Occupancy tenants under section 5 of the Punjab Tenancy Act, 1887,
(b) Tenants holding land on Patta Dawami or Istamrari, with right of transfer by sale , or
(c) Exproprietary tenants, occupancy tenants other than those under section 5 of the Punjab Tenancy Act, 1887, grove holders or tenants holding land on Patta dawami or Istamrari without right of transfer by sale.