Section 26(1) in The East Punjab Holdings (Consolidation and Prevention of Fragmentation) Act, 1948
(1)If the holding of a landowner or the tenancy of a tenant brought under the scheme of consolidation is burdened with any lease, mortgage or other encumbrance, such lease, mortgage or other encumbrance shall be transferred and attached to the holding or tenancy allotted under the scheme or to such part of it as the Consolidation Officers subject to any rules that may be made under section 46, may have determined in preparing the scheme ; and thereupon the lessee, mortgagee or other encumbrancers, as the case may be, shall cease to have any right in or against the land for which the lease, mortgage or other encumbrance has been transferred.
