Clause 4

A State lease may be surrendered, whether before or after the commencement of this section, with a view to the acceptance of a new State lease in place thereof, without a surrender of any under-lease derived thereout.(2) A new State lease may be granted and accepted, in place of any State lease so surrendered, without any such surrender of an under-lease as aforesaid, and the new State lease operates as if all under-leases derived out of the surrendered State lease had been surrendered before the surrender of that State lease was effected.(3) The lessee under the new State lease and any person deriving title under him shall be entitled to the same rights and remedies in respect of the rent reserved by and the covenants, agreements and conditions contained in any under-lease as if the original State lease had not been surrendered but was or remained vested in him.(4) Each under-lessee and any person deriving title under him shall be entitled to hold and enjoy the land comprised in his under-lease (subject to the payment of any rent reserved by and to observance of the covenants and conditions contained in the under-lease) as if the State lease out of which the under-lease was derived had not been surrendered.(5) The Government in granting the new State lease shall be entitled to the same remedies, by distress or entry in and upon the land comprised in any such under-lease for rent reserved by or for breach of any covenant, agreement or condition contained in the new State lease (so far only as the rents reserved by or the covenants, agreements or conditions contained in the new State lease do not exceed or impose greater burdens than those reserved by or contained in the original State lease out of which the under-lease is derived) as he would have had —

the original State lease had remained on foot; or

a new under-lease derived out of the new State lease had been granted to the under-lessee or a person deriving title under him,as the case may be.(6) For the purposes of subsection (5), the imposition of any covenant restricting the use or development of land comprised in a new State lease shall not be regarded as imposing a greater burden than those covenants contained in the original State lease.(7) This section shall not affect the powers of the court to give relief against forfeiture.”.