(1) the Divisional Forest Officer may at his discretion grant suitable extension of time to secure compliance with the formalities referred to in Rule 16.
(ii) The Divisional Forest Officer may cancel the contract and forfeit all the amounts paid in the event of failure on the part of the Forest Contractor to comply with the formalities referred to in Rule 16 following confirmation within the time specified for the purpose of during the extended period of time granted and sell such unit against at the risk and loss of the defaulting forest contractor;
(iii) The Divisional Forest Officer may revoke the cancellation orders , if the Forest contractor fulfills the formalities subsequent to cancellation but before resale or before confirmation of any bid in such a resale or payment of penal amount equal to 5% of the bid amount.
(iv) When a unit is resold under provision of sub-rule (i) whatever bid is offered may be confirmed irrespective of the original sale value of the unit put for resale.
CASE LAW Orissa Forest Contract Rules – As the contractor could not remove the forest produce within stipulated time, the removal was done within the extended time also.
Second extension was given initially but was ultimately cancelled. The contention that the Contractor sustained loss as he was not allowed to fell the trees during the extended period is not correct, and suit for alleged loss is not maintainable.
Collector, Kalhandi& others vs Pawan Kumar Gupta , AIR 2002 Orissa 1.