8. Vesting of unutilized surplus area in the State Government.
- Notwithstanding anything contained in any law, custom or usage for the time being in force, but subject to the provisions of section 15, the surplus area declared as such under the Punjab law or the Pepsu law, which has not been utilized till the commencement of this Act and the surplus area declared as such under this Act, shall, on the date on which possession thereof is taken by or on behalf of the State Government, vest in the State Government, free from all encumbrances and in the case of surplus area of a tenant which is included within the permissible area of the landowner the right and interest of the tenant in such areas shall stand terminated on the aforesaid date:Provided that where any land falling within the surplus area is mortgaged with possession, only the mortgagee rights shall vest in the State Government.
