Provided that in any suit based on such mortgage the mortgaged land shall be sold only to a permanent resident of the State who is a member of an agricultural class for purpose of this Act.

Sanction of Deputy Commissioner required to certain alienations

1. (1) A person who desires to make a permanent alienation of his land shall be at liberty to make such alienation-
   • (a) where the alienor is not a member of any agricultural class ; or
   • (b) where the alienor and alienee are members of an agricultural class : Provided that
     • (i) in the Province of Kashmir and
     • (ii) in the District of Ladakh and in the Bunji Illaqa, no member of an agricultural class shall have the power to alienate within a period of fourteen years from
     • (i) 2nd October, 1934 (17th Assuj, 1991) and
     • (ii) the passing of this Act respectively, more than one-fourth in the aggregate of the area shown against his name on 2nd October, 1934 (17th Assuj, 1991) or at the time of passing of this Act, as the case may be : Provided further that, before the expiry of the said fourteen years the Government shall cause an enquiry to be made to find out whether this restriction on alienation should or should not continue or should be altered and if so in what respects.
2. (2) Except in the cases provided for in sub-section (1), a permanent alienation of land shall not take effect as such unless and until sanction is given thereto by the Deputy Commissioner : Provided that,-
   • (i) sanction may be given after the act of alienation is otherwise completed ; and
   • (ii) sanction shall not be necessary in the case of-
   • (a) a sale of a right of occupancy by a tenant to his landlord, or
   • (b) a gift made in good faith for a religious or charitable purpose, or
   • (c) an alienation of land not exceeding 4 Kanals in area situated in immediate vicinity of a town or village for residential purposes, made in favour of a person who has not already made such an acquisition.
3. (3) The Deputy Commissioner shall enquire into the circumstances of the alienation and shall grant or refuse the sanction required by sub-section (2), according to rules framed by the Council in the matter under section 30.