(1) When an occupancy-tenant dies his right in his holding shall devolve as if it were land :
     Provided that, except in the districts of Chanda, Nimar and Sambalpur, a collateral relative of the tenant shall not be entitled to inherit that right, unless at the death of the tenant he was a co-sharer in the holding or unless, failing any such co-sharer, he held land, or was permanently resident, in the village in or from which the holding is cultivated, and is in the male line of descent from an ancestor who occupied the holding.
     (2) Exemption of occupancy-rights from Court sales.--Save in pursuance of a document duly registered before the commencement of this Act, no decree or order shall be passed for the sale of the right of an occupancy-tenant in his holding, nor shall such right be sold in execution of any decree or order.
     (3) Prohibition of transfer of occupancy-rights.--No occupancy-tenant shall be entitled to sell, make a gift of, mortgage, sub-let (except for a period not exceeding one year) or otherwise transfer his right in his holding or in any portion thereof, and every such sale, gift, mortgage, sub-lease (other than for a period not exceeding one year) or transfer shall be voidable in the manner and to the extent provided by the two next following sections :
     Provided that an occupancy-tenant may transfer his right of occupancy to any person who, if he survived the tenant, would inherit the right of occupancy, or to any person in favour of whom as a co-sharer the right of occupancy originally arose, or who has become by succession a co-sharer therein:
     Provided, also, that nothing in this section shall affect the right of the Government to sell the right of an occupancy-tenant in his holding for the recovery of an advance made to him under the Land Improvement Loans Act, 1883, (XIX of 1883) or the Agriculturists’ Loans Act, 1884, (XII of 1884) or the right of the purchaser at such sale to succeed to the holding.
     (4) Prohibition of contracts for future sub-leases.--No contract for the sub-lease of holding or any portion thereon shall be entered into or made during the currency of a sub-lease of such holding or such portion thereof ; and every such contract shall be voidable in the manner and to the extent provided by the two next following sections.
     (5) Prohibition of registration of documents transferring occupancy-rights.--Notwithstanding anything contained in the Indian Registration Act, 1877, (III of 1877) no officer empowered to register documents shall admit to registration any document which purports to transfer the right of an occupancytenant in his holding or in any portion thereof, unless the document recites that the transferee is a person who, if he survived the tenant, would inherit the right of occupancy, or is a person in favour of whom as a co-sharer the right of occupancy originally arose or who became by succession a co-sharer therein.