- Where no statement of claim is presented as required under section 38 or where the claimant fails to prefer his claim in the manner and within the period fixed by the notice issued under that section or on such claim having been so preferred by him and having been rejected, fails to institute a suit to recover possession of such timber within the further period fixed by section 39, the ownership of such timber shall vest in the Government free from all encumbrances or when such timber has been delivered to another person under that section, in such other person free from all encumbrances other than those created by him.
