(1) In cases where any Guthi lands have been allotted for the construction of houses and shops on payment of the land rent, or where houses and shops have been constructed by the Guthi itself and given in rent, or existing Guthi inns (pati) and roadside shelters (pauwa) have been so given, and rents have been collected accordingly, the Corporation may cause a new bond to be executed in respect of such rent or land rent after the commencement of this Section. While executing a new bond, the amount of rent or
land rent shall be as specified by the Corporation.
(2) Any person who occupies it on the rent or land rent basis shall execute a new bond within the time-limit as specified by the Corporation. In cases where any such person fails to do so, the right of the person occupying it on the rent or land rent basis to possess and use the house or shop shall ipso facto lapse, and the Corporation may give such house or shop to any other person in rent, or occupy the
same itself.