(1) When any statement of claim is presented as required under section 38, the Divisional Forest Officer, may, after making such enquiry as he thinks fit, either reject the claim, or deliver the timber to the claimant, after recording the reasons therefor.
(2) Where such timber is claimed by more than one person, the Divisional Forest Officer may either deliver the same to any such person whom he finds to be entitled thereto after recording the reasons therefor, or may refer the claimants to the court and retain the timber pending the receipt of an order from such court for its disposal.
(3) Any person whose claim has been rejected under this section may, within three months from the date of such rejection, institute a suit to recover possession of the timber claimed by him; but no person shall be entitled to any compensation or cost against the Government or against any forest officer on account to such rejection, or the detention or removal of any timber, or the delivery thereof to any other person.
(4) Save as otherwise provided in this section no such timber shall be subject to the process of any Civil, Criminal or Revenue court until it is delivered.
(5) Where the matter is pending before a court under this section, the Divisional Forest Officer may, with the permission of the court, instead of retaining the timber under sub-section (2) sell the timber in public auction and remit the sale proceeds into the nearest Government treasury. The court may deal with the proceeds of the sale of any such timber in the same manner as it might have dealt with the timber if it had not been sold.