Section 38 in The Orissa Forest Contract Rules, 1966
38. Penalty for Breaches of Conditions without Termination.
(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.(2)There shall be no appeal to the Conservator of Forests if the amount of compensation levied by the Divisional Forest Officer does not exceed Rs. 250 and the order of the Divisional Forest Officer shall be final.(3)An order of the Divisional Forest Officer under this rule shall be subject to appeal to the Conservator of Forests if the amount of compensation levied exceeds Rs. 250 wherein the Conservator of Forests may not only reduce or maintain the quantum of compensation so levied by the Divisional Forest Officer but he may also enhance it if considered necessary. In case of enhancement of compensation by the Conservator of Forests, he should clearly mention in the order the grounds for such enhancement and the causes that led him to believe that the compensation assessed by the Divisional Forest Officer is reasonably lighter than what should have been assessed in a case of similar nature and, secondly, the forest contractor against whom compensation is enhanced be given an opportunity of being heard. The order of the Conservator of Forests enhancing the quantum of compensation shall be appealable and such appeal shall lie to the Chief Conservator of Forests.
