Section 3(2) in The Punjab Village Common Lands (Regulation) Act, 1961
(2)Notwithstanding anything contained in sub-section (1) or section 4, where any land has vested in a panchayat under the shamilat law but such land has been excluded from shamilat deh as defined in clause (g) of section 2, all rights, title and interest of the Panchayat in such land shall, as from the commencement of this Act, cease and such rights, title and interest shall be revested in the person or persons in whom they vested immediately before the commencement of the shamjlat law and the panchayat shall deliver possession of such land to such person or persons:Provided that where a panchayat is unable to deliver possession to any such and on account of its having been sold or utilised for any of its purposes, the rights, title and interest of the panchayat in such land shall not so cease but the panchayat shall, notwithstanding anything contained in section 10, pay to the person or persons entitled to such land compensation to be determined in accordance with such principles and in such manner as may be prescribed.
