(1) Where land, which has vested or vests
in the 1[Union territory of Jammu and Kashmir] by section 4 or section
5 or section 6, is subject to mortgage without possession and mortgage
subsists on the date when, in lieu of extinguishment of rights in such
land payment is to be made in accordance with the provisions of Schedule
III, the mortgagee shall be paid such amount, in such manner and in
accordance with such procedure, as is provided in the aforementioned
Schedule, anything to the contrary contained in any law, decree or order
of a Court or any contract notwithstanding,
be put in possession thereof subject, however, to the payment of amount, if any, due to the mortgagee :
Provided that, in calculating the amount due, interest shall be charged only on the principal money, at a rate not higher than 5 per annum :
Provided further that in no case shall the principal sum plus interest thereon exceed one and a half times the principal money :
Provided also that where the mortgagee has been in possession of the mortgaged land for a period of ten years or the period during which the mortgage was to subsist according to the terms of the mortgage deed, whichever is less, it shall be conclusive proof of the fact that the mortgagee has received one and a half times the amount of principal money as well as the cost of improvements, if any.
(c) Where the Collector finds that any sum is due to the mortgagee under clause (b), he may order the deposit of the amount found due from the mortgagor in such annual instalments, not exceeding ten, as the Collector may, with due regard to the paying capacity of the mortgagor, deem fit.
(d) In determining the amount due, the Collector shall give credit to the mortgagor for the value of the benefits to be enjoyed by the mortgagee during the period covered by the instalments.
(e) The Collector may order that, in lieu of the deposit of the amount found due, the mortgagee shall enjoy the profits of the mortgaged land for a period to be determined by the Collector with due regard to the amount found due and the profits accruing from the land :
Provided that such period shall not exceed ten years or the period during which the mortgage was to subsist, according to the terms of mortgage deed, whichever is less, reckoned from the date the mortgagee came into possession of the land under the mortgage.
(f) The mortgagor shall be deemed to have complied with the order of deposit if the whole of the amount found due is deposited within the period covered by instalments.
be put in possession thereof subject, however, to the payment of amount, if any, due to the mortgagee :
Provided that, in calculating the amount due, interest shall be charged only on the principal money, at a rate not higher than 5 per annum :
Provided further that in no case shall the principal sum plus interest thereon exceed one and a half times the principal money :
Provided also that where the mortgagee has been in possession of the mortgaged land for a period of ten years or the period during which the mortgage was to subsist according to the terms of the mortgage deed, whichever is less, it shall be conclusive proof of the fact that the mortgagee has received one and a half times the amount of principal money as well as the cost of improvements, if any.
(c) Where the Collector finds that any sum is due to the mortgagee under clause (b), he may order the deposit of the amount found due from the mortgagor in such annual instalments, not exceeding ten, as the Collector may, with due regard to the paying capacity of the mortgagor, deem fit.
(d) In determining the amount due, the Collector shall give credit to the mortgagor for the value of the benefits to be enjoyed by the mortgagee during the period covered by the instalments.
(e) The Collector may order that, in lieu of the deposit of the amount found due, the mortgagee shall enjoy the profits of the mortgaged land for a period to be determined by the Collector with due regard to the amount found due and the profits accruing from the land :
Provided that such period shall not exceed ten years or the period during which the mortgage was to subsist, according to the terms of mortgage deed, whichever is less, reckoned from the date the mortgagee came into possession of the land under the mortgage.
(f) The mortgagor shall be deemed to have complied with the order of deposit if the whole of the amount found due is deposited within the period covered by instalments.
1. Substituted for “State” by S.O. 3808 (E) of 2020 dated 26.10.2020.