(1) With effect from the commencement of this Code, the right to all trees standing or growing on any occupied land shall vest in the holder thereof but if the State Government is of opinion that it is necessary to prohibit or regulate the cutting of certain trees for preventing erosion of soil, it may by rules prohibit or regulate the cutting of such trees.
(2) Nothing in sub-section (1) shall affect in any area any right in trees in the holding of an occupant in favour of any person existing on the 1st day of October 1955, but the occupant may apply to the Collector to fix the value of such right and purchase the right through the Collector in such manner as may be prescribed.
(3) Any sale or agreement for sale of trees made by any person before the commencement of this Code in anticipation of the vesting such trees in him by virtue of the provisions of this section shall be void, and any consideration given for such sale or agreement shall be refunded.