Mortgagor's power to lease.- (1) Subject
to the provisions of sub-section (2), a mortgagor,
while lawfully in possession of the mortgaged
property, shall have power to make leases thereof
which shall be binding on the mortgagee.
(2) (a) Every such lease shall
be such as would be made in the ordinary course
of management of the property concerned, and
in accordance with any local law, custom or
(b) Every such lease shall
reserve the best rent that can reasonably be
obtained, and no premium shall be paid or promised
and no rent shall be payable in advance.
(c) No such lease shall contain
a covenant for renewal.
(d) Every such lease shall
take effect from a date not later than six months
from the date on which it is made.
(e) In the case of a lease
of buildings, whether leased with or without
the land on which they stand, the duration of
the lease shall in no case exceed three years,
and the lease shall contain a covenant for payment
of the rent and a condition of re-entry on the
rent not being paid with a time therein specified.
(3) The provisions of sub-section
(1) apply only if and as far as a contrary intention
is not expressed in the mortgage-deed; and the
provisions of sub-section (2) may be varied
or extended by the mortgage-deed and, as so
varied and extended, shall, as far as may be,
operate in like manner and with all like incidents,
effects and consequences, as if such variations
or extensions were contained in that sub-section.