Section 38(1) in The Orissa Forest Contract Rules, 1966
(1)Where the forest contractor commits a breach of any of the conditions of his contractor but it is not proposed to terminate his contract on account thereof, the Divisional Forest Officer shall have power to assess the compensation payable on account of such breach. Any sum assessed as compensation shall be recovered from the contractor's security deposit unless paid in cash within 15 days of issue of the order assessing the compensation. If the security deposit is not sufficient to cover the compensation the same can be recovered as arrear of land revenue provided that in all such cases, the Divisional Forest Officer shall have power to stop the work of the contractor pending final decision in the matter.
