Section 26 in The East Punjab Holdings (Consolidation and Prevention of Fragmentation) Act, 1948
26. Encumbrances of landowners and tenants.
(1)If the holding of a landowner or the tenancy of a tenant brought under the scheme of consolidation is burdened with any lease, mortgage or other encumbrance, such lease, mortgage or other encumbrance shall be transferred and attached to the holding or tenancy allotted under the scheme or to such part of it as the Consolidation Officers subject to any rules that may be made under section 46, may have determined in preparing the scheme ; and thereupon the lessee, mortgagee or other encumbrancers, as the case may be, shall cease to have any right in or against the land for which the lease, mortgage or other encumbrance has been transferred.(2)If the holding or tenancy to which a lease, mortgage, or other encumbrance is transferred under sub-section (1) is of less market value than the original holding from which it is transferred, the lessee, mortgagee or other encumbrancer, as the case may be, shall subject to the provisions of section 34 be entitled to the payment of such compensation by the owner of the holding, or as the case may, the tenant as the Consolidation Officer may determine.(3)Notwithstanding anything contained in section 23, the Consolidation Officer shall if necessary put any lessee or any mortgagee or other encumbrancer entitled to possession, in possession of the holding or tenancy or part of the holding or tenancy to which his lease, mortgage or other encumbrance has been transferred under sub-section (1).
