Liability of lessee or mortgagee as owner

(1) Where the owner of a cotton ginning or pressing factory has leased or mortgaged with possession the factory for a period of not less than one month in the case of a cotton ginning factory and three months in the case of a cotton pressing factory and retains no interest in the management or profits of the factory, and has given notice of the lease or mortgage to the prescribed authority, the owner shall hand over to the lessee or mortgagee all the registers maintained by him under section 3 before the commencement of the lease or mortgage. The lessee or the mortgagee as the case may be, shall be deemed to be the owner of the factory from the date of the notice and for the period of the continuance of the lease or mortgage for the purposes of section 3, in respect of the registers maintained or to be maintained and for that period, and for the purposes of sections 8, 9, 10 and sub-sections (2) to (6) of section 14. (2) On the termination of the lease or mortgage, the lessee or the mortgagee shall hand over to the owner the registers maintained under section 3, and the owner shall forthwith report to the prescribed authority any default of the lessee or mortgagee in complying with the provisions of this sub-section or in maintaining the registers in accordance with the provisions of section 3. (3) Any person who fails to comply with any of the provisions of sub-sections (1) and (2) shall be punishable with fine which may extend to two hundred and fifty rupees.