Section 34(2) in The Orissa Forest Contract Rules, 1966
(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.
