Section 10(2) in Jammu and Kashmir Agrarian Reforms Act, 1976
(2)Wherein land is subject to mortgage with possession and the mortgage subsists on the date of commencement of this Act, the restitution of such land shall, notwithstanding anything to the contrary contained in any law, decree or order of a Court or a Revenue Officer or any contract, be effected in the manner and according to the procedure given below, namely: (a)the mortgagor may apply for restitution of such land to the Collector, having jurisdiction in the area in which it is situate. The Collector shall, on receipt of such application give an opportunity to.the,mortgagor and the mortgagee of being heard and make such further enquiry as may be necessary.(b)(i)where the Collector finds that the value of benefits enjoyed by the mortgagee equals or exceeds the cost of improvements, if any, effected by such mortgagee, in accordance with the terms of the mortgage deed, plus one and a half times the amount of the principal money, he shall, by order in writing, direct that the mortgage be redeemed and shall put the mortgagor in physical possession of the land;(ii)where the Collector finds that the value of benefits enjoyed by the mortgagee, while in possession, is less than the cost of improvements, if any, effected by such mortgagee in accordance with the terms of the mortgage deed, plus one and a half times the amount of the principal money, he shall, by order in writing, direct that the mortgaged land be restored to the mortgagor and he be put in possession thereof subject, however, to the payment of amount, if any, due to the mortgagee:Provided that, in calculating the amount due, interest shall be charged only on the principal money, at a rite not higher than 5% per annum:Provided further that in no case shall the principal sum plus interest thereon exceed one and a half times the principal money:Provided also that where the mortgagee has been in possession of the mortgaged land for a period of ten years or the period during which the mortgage was to subsist according to the terms of the mortgage deed, whichever is less, it shall be conclusive proof of the fact that the mortgagee has received one and a half times the amount of principal money as well as the cost of improvements, if any:(c)Where the Collector finds that any sum is due to the mortgagee under clause (b), he may order the deposit of the amount found due from the mortgagor in such annual instalments, not exceeding ten, as the Collector may, with due regard to the paying capacity of the mortgagor, deem fit.(d)In determining the amount due, the Collector shall give credit to the mortgagor for the value of the benefits to be enjoyed by the mortgagee during the period covered by the instalments.(e)The Collector may order that, in lieu of the deposit of the amount found due, the mortgagee shall enjoy the profits of the mortgaged land for a period to be determined by the Collector with due regard to the amount found due and the profits accruing from the land:Provided that such period shall not exceed ten years or the period during which the mortgage was to subsist, according to the terms of the mortgage deed, whichever is less, reckoned from the date the mortgagee came into possession of the land under the mortgage.(f)The mortgagor shall be deemed to have complied with the order of deposit if the whole of the amount found due is deposited within the period covered by instalments.
