(1) In the case of a claim to a right in or over any land, other than a right of way or right of pasture, or a right of forest produce or a watercourse or in respect of any building standing on such land, the Forest Settlement Officer shall pass an order admitting or rejecting the same in whole or in part.
(2) If such claim is admitted in whole or in part, the Forest Settlement Officer shall either,—
(i) exclude such land or, building from the limits of such reserved forest; or
(ii) come to an agreement with the owner for the surrender of his rights; or
(iii) proceed to acquire such land in the manner provided by the Land Acquisition Act, 1894.
(3) For the purpose of so acquiring such land or building,—
(a) the Forest Settlement Officer shall be deemed to be a Deputy Commissioner proceeding under the Land Acquisition Act, 1894;
(b) the claimant shall be deemed to be a person interested and appearing before him in pursuance of a notice given under section 9 of that Act;
(c) the provisions of the preceding sections of that Act shall be deemed to have been complied with; and
(d) the Forest Settlement Officer, with the consent of the claimant, or the court (as defined in the said Act), with the consent of the claimant and Forest [1964: KAR. ACT 5 364 the Deputy Commissioner of the district, may award compensation in land, or partly in land and partly in money.