(2)When, in any case in which a settlement of land-revenue is not being made or is not about to be made, the Revenue Officer has recorded, in pursuance of Clause (m) of Section 113, that the occupant of any land claimed to be held rent-free is not entitled to hold it without payment of rent, and either the landlord or the occupant applies within three months from the date of the certificate of the final publication of the record-of-rights under Section 116, Sub-section (4), for a settlement of rent, the Revenue Officer shall settle a fair and equitable rent for the land.