(1)Notwithstanding anything to the contrary contained in any law or anything having the force of law or in any contract, any possessory mortgage which is executed either before or after the commencement of this Act shall, unless discharged previously, stand discharged after the expiration of a period of seven years from the date of the Mortgage.(2)On the discharge of the mortgage as aforesaid, the mortgagee shall deliver to the mortgagor all documents in his possession or power relating to the mortgaged property and shall transfer the property to the mortgagor and put him in possession thereof at his cost free from the mortgage and from all encumbrances created by him and those claiming under within three months from the date of expiry of the aforesaid period of seven yearsProvided that in cases where the said period of seven years has expired prior to the 22nd day of September, 1975, the delivery of documents and the delivery of possession of the property as aforesaid shall be effected within three months from the said date.(3)In case of the death of the mortgagor before the delivery of possession, the mortgagee shall deliver possession of the said documents and the mortgaged property to the successor-in-interest of the mortgagor.(4)Where the mortgagee is unable to ascertain or is in doubt as to who is the successor-in-interest, he shall make an application within the period allowed for delivery of possession to the Court which is competent to entertain a suit in respect of the mortgaged property for taking over possession and management of the property and custody of the documents whereupon the Court shall appoint a receiver and thereupon, the provisions contained in Order XL of the Code of Civil Procedure, 1908 (6 of 1908) shall, so far as may be, apply.(5)Any person claiming to be the successor-in-interest of the mortgagor may apply to the Court within twelve years from the date of appointment of the receiver for possession of the property whereupon the Court shall determine if the applicant or any other person is the successor-in-interest and for the said purpose the Court shall, as far as may be, follow the procedure provided in Part-X of the Indian Succession Act, 1925 (89 of 1925).(6)After such determination, the Court shall deliver possession of the property along with the documents and the amount, if any, which has accrued from the income of the property to the person who is found by the Court to be the successor-in-interest.(7)If no application is made under Sub-section (5) within the period specified therein or it on such an application being made no person is found to be the successor-in-interest and the said period has already elapsed, the property along with the amount, if any, which has accrued from its income shall lapse to the State Government.Explanation - For the purpose of this section any mortgage in pursuance of which the mortgages is in possession and enjoyment to the mortgage security in satisfaction of the mortgage debt either in whole or in part shall be deemed to be a possessory mortgage.
