Section 12(1) in The Haryana Ceiling of Land Holdings Act, 1972
(1)The surplus area of a landowner shall, [from the date on which it is declared as such shall be deemed to have been acquired by the State Government for a public purpose] [Substituted by Haryana Act 40 of 1976.] and all rights, title and interest (including the contingent interest, if any, recognised by any law, custom or usage for the time being in force) of all persons in such area shall stand extinguished and such rights, title and interest shall vest in the State Government free from any encumbrance :Provided that where any land within the permissible area of the mortgagor is mortgaged with possession and falls within the surplus area of the mortgagee, only the mortgagee rights shall be deemed to have been acquired by the State Government and the same shall vest in it.