(1) Notwithstanding anything contained in this Act, the State Government may, by Notification, for reasons to be specified therein, declare any area to be a prohibited area for such period, as may be specified in such Notification.
(2) During the period any area is declared to be a prohibited area under Sub-section (1) the following consequences shall ensue, namely :
(a) no licence shall be granted for establishment of a saw mill or saw pit in that area;
(b) no licence shall be renewed in relation to the area during that period;
(c) a saw mill or saw pit situated in that area shall cease to operate and keep its sawing operations closed :
Provided that the licensing officer may permit sawing of wood in deposit in the saw mill or a saw pit subject to Such conditions and restrictions as it may deem fit to impose; and
(d) no claim on account of damages because of closure shall be entertained nor any damages shall be payable.