(1) All monies, other than fines imposed by the magistrate, duly ascertained and payable to the Government under this Act, or any rule made thereunder, or on account of timber or forest produce or of expenses incurred in the execution of this Act in respect of timber or forest produce or under any contract relating to timber or forest produce including any sum recoverable thereunder for the breach thereof or in consequences of the cancellation or under the terms of a notice relating to the sale of timber or forest produce by auction or by invitation of tenders issued by or under the authority of a Divisional Forest Officer and all compensations awarded to Government under this Act including the compensation under section 59 may, if not paid when due, be recovered as if it were an arrear of land revenue.
(2) Where the money referred to in sub-section (1) is payable for, or in respect of any forest produce, the amount thereof shall be deemed to be a first charge on that produce; and, if the amount be not paid when due, the produce may be taken possession of by or under the authority of the Divisional Forest Officer, and may be retained until such amount is paid, or the forest officer may sell the produce by public auction, and proceeds of the sale shall be applied first in discharging such amount.
(3) The surplus, if any shall be paid to the person entitled thereto.