Section 10A in The Jammu and Kashmir Big Landed Estates Abolition Act, 2007 (1950 A. D.)
10A. [ Power of Collector to determine the equity of the mortgage. [Section 10-A added by Act No. XXI of 2009.]
(1)Subject to the provisions of section 10 of this Act it shall be lawful for the Collector to make the mortgage in one of the following forms-(a)if the mortgage was already a usufructuary mortgage, in the same form of mortgage by which the mortgagor delivers to the mortgagee possession of such portion of the land as will leave a reasonable margin of subsistence with the mortgagor according to the productive capacity of such land as also his financial conditions, and authorises him to retain such possession and receive the rents and benefits of the land in lieu of interest and towards payment of the principal as determined by the Collector on the condition that after expiry of the term as may be determined by the Collector but which shall not exceed the term already agreed upon in the mortgage-deed or if the term agreed on exceeds 21 years, on the expiry of 21 years from the date on which the possession of the land was transferred, the mortgage shall be extinguished and the land shall be re-delivered to the mortgagor ; or(b)if the mortgage was already without possession, in the same form of mortgage subject to the condition that if the mortgagor fails to pay principal and interest, as determined by the Collector, the mortgagee may apply to the Collector to place him in possession for such term, not exceeding 21 years as the collector considers to be equitable, the mortgage to be treated as a usufructuary mortgage for the term of the mortgagee's possession and for such sum as may be due to the mortgagee on account of the balance of principal due and of interest due, not exceeding the amount claimable as simple interest at such rate and for such period as the Collector thinks reasonable ; or(c)if the mortgage was already a written up usufructuary mortgage, in the same form of mortgage by which the mortgage retains possession with himself and recognises the mortgagee as his landlord subject to the payment of such rent as may be agreed upon, not exceeding double the amount of the land revenue assessed on the tenancy plus the rates and cesses chargeable thereon and for such term as may be determined by the Collector to be equitable, the mortgagor having no right to alienate his right of cultivating occupancy and the mortgagee having no right to eject the" mortgagor, except on the grounds provided in the Jammu and Kashmir Tenancy Act, 1980.(2)If in the case of a mortgage in form (c) the mortgagor is ejected or relinquishes or abandons cultivating occupation of the land, the mortgage shall take effect as a usufructuary mortgage in form (a) for such term, not exceeding 21 years, from the date of the ejectment, relinquishment or abandonment, and for such sum of money as the Collector may consider to be reasonable.(3)The Collector, if he makes the mortgage in the form provided in sub-section (1) (b), shall have the power to eject the mortgagor and to place the mortgagee in possession.(4)In the case of mortgages made under this section-(i)no interest shall accrue during the period for which the mortgagee is in possession of the land or in receipt of rent ;(ii)if the mortgage is in form (a) or form (b), then at the end of the fixed period of possession the mortgage debt shall be extinguished ;(iii)the mortgagor may redeem his land at any time during the currency of the mortgage on payment of the mortgage debt or in the case of a mortgage in form (a) or form (b) of such proportion of the mortgage debt as the Collector determines to be equitable ;(iv)in the case of a usufructuary mortgage the mortgagee shall not be deemed to bind himself personally to repay the mortgage money ; and(v)if a mortgagor who has applied to the Collector under sub-section (3) proves to the satisfaction of the Collector that he has paid the mortgage debt as the Collector has determined to be equitable or deposits with the Collector the amount of such mortgage debt or of such proportion thereof, the redemption of the land shall be deemed to have taken place and the Collector shall eject the mortgagee, if in possession, and as against the mortgagee place the mortgagor in possession.]
