Judgment

VENKATARAMIAH, J. :- Labh Singh, respondent No. 1 herein, was the owner of certain agricultural lands in three villages situated in the district of Kapurthala, namely, village Karahal Nauabad, village Isherwa and village Brindpur measuring in all 32-8 standard acres. Of them an extent of 7-4 standard acres of land situated in village Brindpur had been mortgaged with possession by him in favour of one Lachman Singh of village Khera Dona before the Pepsu Tenancy and Agricultural Lands Act, 1955 (Pepsu Act 13 of 1955) (hereinafter referred to as the Act) came into force. The mortgage was subsisting when Chapter IV-A was inserted by the Pepsu Tenancy and Agricultural Lands (Second Amendment) Act, 1956 (Pepsu Act No. 15 of 1956) into the Act. Chapter IV-A of the Act which provided for the imposition of ceiling on land and acquisition and disposal of surplus area consisted of sections 32-A to, 32-NN. Section 32-A of the Act read as follows:

"32-A. Ceiling on land.-

(1) Notwithstanding anything to the contrary in any law, custom, usage or agreement, no person shall he entitled to own or hold as landowner or tenant land under his personal cultivation within the State which exceeds in