Amendment status not verified — confirm the current text below against the official source.
When mortgagee zn posseman may be dispossessed.-( l) When any property of a ward is m the possession of a mortgagee, or any person cla1ming under a mortgagee, the Government may, on being satisfied that 1t is expedient in the public interest that the estate should be preserved and such encumbrancer should deliver up possession of the mortgaged property, make a declaration to that effect, and direct the court to take possession thereof; the court shall thereupon, by an order ' I l \ ---9 127 in writing, require such encumbrancer to deliver up possession of the same to the manager at the end ofthe then cunent financial yea1., (2) If such encumbrancer refuse~ ur neglects to obey such order, the Collector may, w1thout resorting ton civil court, enter upon the property, and summarily ev1ct therefrom the said <'ncumbrancer and any other person obstructing or res1sting on his behalf. (3) The dispossession of the encumln ancer under sub-sections ( l) and (2) shall not df'prive him of any right for the 1 ecove1 y of at rears of rent due to him at the date of his d1spossessiun. (4) If in the instrument of mortgage under which the <-ncum. brancer is in possession of the property, uo rate of intere~t is specified, the Collector shall, m cases where the m01 tgage debt has been notified to or admitted by htm, offer to the encumbrancer the rate of intere~t which appears to htm to be reasonable; nml pass on order fixing the rate accordingly. Copy of the 01 det shall be served upon the encum· brancer in the manner prescnbed by the Code of Civtl Procedure, 1908 (5 of 1908), for service of summons upon a defendant. If the encum- brancer is dissatisfied wtth the rate of mtcrest so fixed, he may, within three months from the date of set vice upon him of such order, institute a suit against the ward in the District Court within whose jurisdiction the property mortgaged or any portion thereof Is situate, and the said court shall, if the mortgage debt has lweu notified or admitted as aforesaid, pass a declat atm y decree fixing snrh rate of intet est as it may deem reasonable. If no such SUit be instituted within the said period, the encumbrancer shall be deemed to have agreed to the rate fixed by the Collector. (5) If an encumb1 anccr is dispossess1·d of pro petty undet this section, he shall be entitled to recover the amount due to him undrr the instrument of mortagage on the date of ~uch di~possession together with- ( a) mterest as f10m that date, on the priucipal money outstan· ding on such date at the rate st1pulated 111 the instrument of mortgage or, if there is no ~uch stipulation, at the 1ate fixr.d under sub- section (4), and (b) any amount to which he may, in case of dispossession, be entitled under the instrument of mortgage or under any i.lw fm the time being in force, in the same manner as if- (z) he were a stmple mortgagee of such property under the said mstrumcnt, a11d (u) the entire money as computed above \\Cte advanced uy way of loan under the said iusturment: Provided that the rights of the encurnbrance1 und!'t this sub· section shall l.Je subject to- (a) the provisions of section 40, and 128 (b) the charges specified in Classes I and II in section 31, except those relating to the liquidation of debts payable by the ward and to the upkeep of the furniture, equipage, livestock and other movable property belonging to the Vvard. (6) The Collector shall, as soon as conveniently may be after the expiratiOn of the financial year commencing with the date of such dispossessiOn and of every successive financial year, declare, subject to the approval of the court, the gross annual rents and profits realised from such property, the several heads of expenditure and the balance, and such declaration shall be conclusive evidence of the statements therem con tamed. A copy of such declaration shall be fu1 nished to the dispossessed encumbrancer free of charge. CHAPTER VI Suits