Section 31 in Telangana Prevention of Fragmentation and Consolidation of Holdings Act, 1956
31. Transfer of encumbrances.
(1)If the holding of an owner included in a scheme of consolidation which has come into force under section 23 is burdened with a mortgage, debt or other encumbrance other than a lease, such mortgage, debt or other encumbrance shall be transferred therefrom and attach itself to the holding allotted to him under the scheme or to such part of it as the Consolidation Officer may, subject to any rules made under section 47 appoint; and the mortgagee, creditor or other encumbrancer, as the case may be, shall exercise his rights accordingly.(2)If the holding to which a mortgage, debt or other encumbrance is transferred under sub-section (1) is of less market value than the original holding from which it is transferred the mortgagee, creditor or other encumbrancer, as the case may be, shall subject to the provisions of section 33 be entitled to the payment of such compensation by the owner of the holding as the case may require, as the Consolidation Officer may determine.(3)Notwithstanding anything contained in section 22, the Consolidation Officer shall, in the prescribed manner put any mortgagee or encumbrancer entitled to possession into possession of the holding to which his mortgage or other encumbrance has been transferred under sub-section (1).
