Section 34 in The Orissa Forest Contract Rules, 1966
34. Termination Contracts.
(1)If the forest contractor makes default in the payment of the consideration for his contract of any instalment thereof, or does not pay the compensation assessed under any of these Rules, such contract may be terminated by the authority competent to execute it.(2)Such termination shall be notified to the forest contractor by a written notice delivered to him personally or sent to him by registered acknowledgement due post and stating that he shall forthwith discontinue all work in pursuance of the contract that the contract shall be deemed to have been terminated, unless he pays within one month from the date of receipt of the notice all arrears due to the Government together with interest assessable under Rule 42 and renewal fee not exceeding 1 per cent of the arrear dues and thereupon in the case of the failure of the contractor to make the aforesaid payments, all the rights of the Contractor under the contract including all necessary licenses shall cease and all the forest produce remaining within the contract area or at the depots referred to in Rule 16 and bearing the contractor's registered property or trade mark and Government hammer mark prescribed in Rule 22 shall become the absolute property of Government :Provided that the State Government, Chief Conservator of Forests or the Conservator of Forests or the Divisional Forest Officer, as the case may be, may extend the grace period of one month in case of leases terminated by them in exceptional cases.(3)On such termination Government shall be entitled-(a)to keep all sums already paid by the contractor as considerations or part consideration of the forest contract and also interest on overdue instalments under Rule 42;(b)to recover as arrears of land revenue any compensation which may be assessed under the provisions of the Forest Contract Rules;(c)to re-sale the contractor along with the produce at the depots referred to in Sub-rule (2) in the case of bamboo and other reasonable forest produce which has become the property of Government under the said Sub-rule (2) and to recover as arrears of land revenue the amount, if any, by which the price secured on such re-sale falls short of the consideration money fallen due and also that is likely to fall due but for such termination together with interest accrued under Rule 42 calculated up to the date of termination of contract;(d)to forfeit the security deposit of the contractor.
