Section 16(3)(ii) in The Delhi Lands Reforms Act, 1954
(ii)where the mortgagor tenant is a tenant, other than an occupancy tenant under section 5 of the Punjab Tenancy Act, 1887, or a Pattadar Dawami or Istamrari with right of transfer by sale, the entire amount of compensation payable by the mortgagee and his tenants, if any, shall be paid direct to the proprietor of the mortgagor tenant and the mortgage money, shall be deemed to have been fully satisfied by the enjoyment of the usufruct.