Section 32E(a) in The Pepsu Tenancy and Agricultural Lands Act, 1955
(a)in the case of the surplus area of a landowner, or in the case of the surplus area of a tenant which is not included within the permissible limit of the landowner, [such area shall, on the date on which possession thereof is taken by or on behalf of the State Government, be deemed to have been acquired] [Substituted for the words 'such area shall be deemed to have been acquired' with effect from the 30th October, 1956, by Punjab Act No. 16 of 1962, section 5.] by the State Government for a public purpose and all rights, title and interest (including the contingent interest, if any, recognised by any law, custom or usage for the time being in force) of all persons in such land shall be extinguished, and such rights, title and interest shall vest in the State Government free from encumbrances created by any person; and
