Section 16(3) in The Delhi Lands Reforms Act, 1954
(3)where a tenant mortgagor, referred to in sub section (5) of section 15, fails to apply for redemption within the period specified in sub section (1) and of clause (a) of sub section (2) shall apply mutatis mutandis and the amount of compensation payable by the mortgagee and his tenants, if any, in respect of mortgaged land in possession of each to the proprietor shall be determined separately, in accordance with the provisions of clauses (a) and (b) of sub section (2) of section 14 . The compensation so determined shall be paid as follows: --(i)where the mortgagor tenant is an occupancy tenant under section 5 of the Punjab Tenancy Act, 1887, or a Pattadar Dawami or Istamrari with right of transfer by sale, the amount due from the mortgagor to the mortgagee under the mortgage shall also be determined in accordance with clause (c) of sub section (2). The mortgagee or his tenants shall each first pay out of the total compensation determined above, an amount equal to four times the land revenue payable for the land in his possession immediately before the commencement of this Act, to the proprietor, If the balance of the compensation payable by the mortgagee and his tenants, is greater than the amount due to the mortgagee from the mortgagor under the mortgage, the difference shall be paid by the mortgagee and his tenants, as compensation to the mortgagor tenant [(Note: Ins. by s.9 of Delhi Act 16 of 1956) in one lump sum within six months from the date of the order, first by the mortgagee tenant upto the extent of the amount left over , if any] If it is less, the entire mortgage money with interest shall be deemed to have been fully satisfied by the enjoyment of the usufruct and nothing shall be payable to the mortgagee in adjustment of the mortgage money.(ii)where the mortgagor tenant is a tenant, other than an occupancy tenant under section 5 of the Punjab Tenancy Act, 1887, or a Pattadar Dawami or Istamrari with right of transfer by sale, the entire amount of compensation payable by the mortgagee and his tenants, if any, shall be paid direct to the proprietor of the mortgagor tenant and the mortgage money, shall be deemed to have been fully satisfied by the enjoyment of the usufruct.
