(1) Notwithstanding anything to the contrary contained in section 4, the State Government or its authorised officer may, on such terms and conditions and in such manner as be prescribed, permit any person who had purchased the extracted forest produce for the purpose of further sale or had extracted forest produce or had obtained the orders of demarcation and marking for its extraction before the commencement of this Act, to fell, convert, transport and sell such forest produce to any person other than the State Government, or an authorised officer or agent and permit any person other than the State Government or its authorised officer or agent to purchase and transport the same. The permission so accorded shall lapse after the 30th November, 1982.
(2) Where at any time before the commencement of this Act, any person had entered into any contract for the sale of forest produce to any trader and obtained an advance from such trader towards the price of the forest produce accepted to be delivered to the trader under such contract, then notwithstanding that by virtue of the provisions of section 4, such contract shall have become void on the commencement of the Act, the said person and trader may make a joint application before the Divisional Forest Officer or an officer authorised by him or the agent, in that behalf, giving particulars of such advance and thereupon the said officer, on being duly satisfied that the transaction is genuine one, may direct the officer of the State Government or the agent to pay on behalf of the said person to such trader a sum equivalent to the said advance (less the amount already re-paid by the said person to such trader) without any interest or compensation out of the price due to the said person for the forest produce sold under section 5, and the liability of the State Government or the agent to the said person and of the said person to the trader shall, to the extent of such payment, stand discharged and the said person shall not be liable to pay any interest or compensation in respect of such advance.
Such claims shall lapse after the 30 th November, 1982.