When mortgagee in possession may be dispossessed

(1) When any property of a ward is in the possession of a mortgagee, or any person claiming under a mortgagee, the State Government may, on being satisfied that it is expedient in the public interest that the estate should be preserved and that 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 in writing, require such incumbrancer to deliver up possession of the same to the manager at the end of the then current revenue year. (2) If such encumbrancer refuses or neglects to obey such order, the Collector may, without resorting to a Civil Court, enter upon the property, and summarily evict therefrom the said encumbrancer and any other person obstructing or resisting on his behalf. (3) The dispossession of the encumbrancer under Sub-sections (1) and (2) shall not deprive him of remedy for the recovery of arrear rents due to him at the date of his dispossession, under any law for the time being in force. (4) If in the instrument of mortgage under which the incumbrancer is in possession of the property, no rate of interest is specified, the Collector shall, in cases where the mortgage debt has been notified to or admitted by him, offer to the encumbrancer the rate of interest which appears to him to be reasonable; and pass an order fixing the rate accordingly. Copy of the order shall be served upon the encumbrancer in the manner prescribed by the Code of Civil Procedure, 1908 (V of 1908) for service of summons upon a defendant. If the encumbrancer be dissatisfied with the rate of interest so fixed, he may, within three months from the date of service upon him of such order, institute a suit against the ward in a District Court within whose jurisdiction the property mortgaged or any portion thereof is situate, and the said Court shall, if the mortgage debt has been notified or admitted as aforesaid, pass a declaratory decree fixing such rate of interest as to it may seem 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 encumbrancer is dispossessed under this section, the money due to him under the instrument of mortgage at the date of such dispossession together with subsequent interest on the unliquidated principal of the mortgage debt at the rate stipulated in the said instrument, and in the absence of such stipulation at the rate determined as hereinbefore provided, shall, subject to the provisions of Section 45 and subject to the charges specified in Clauses I and II in Section 35, excepting the liquidation of debts payable by the ward, and the provisions with reference to the upkeep of the furniture, equipage, live-stock and other movable property belonging to the ward, be recoverable, together with any money which he may be legally entitled to add to the principal money on the security of the property mortgaged and of the rents and profit; arising or accruing therefrom subsequent to the date of such dispossession, in the same manner as if he were a simple mortgagee under the said instrument of such property and of such rents and profits. (6) The Collector shall, as soon as conveniently may be, after the expiration of the revenue year commencing with the date of such dispossession and of every successive revenue year declare, subject to the approval of the Court, the gross annual rents and profits realized from such property, the several heads of expenditure and the balance and such declaration shall be conclusive evidence of the statements therein contained. A copy of such declaration shall be furnished to the dispossessed encumbrancer free of charge.