Reversion and vesting of land surrendered by usufructuary mortgagee

(1) Where the land surrendered under section 67 is by an usufructuary mortgagee, the possession of the land shall (without prejudice to the rights of the tenant, if any, in occupation of the land) revert to the mortgagor in every case where, and to the extent to which the mortgagor himself is not liable to surrender the said land in accordance with the provisions of section 67.

(2) The mortgagor to whom possession of the land reverts under sub-section (1) shall be liable to pay the mortgage money due to the usufructuary mortgagee in respect of that land and the said land shall be the security for such payment.

(3) In cases where possession of the land surrendered by an usufructuary mortgagee does not revert to the mortgagor for the reason that the mortgagor is himself liable under section 67 to surrender the land held by him, the State Government may take over such land on the publication of the notification under section 73 and such land thereupon shall vest in the State Government free from all encumbrances.