Disposal of unclaimed timber

If no such statement is presented aforesaid, or if the claimant omits to prefer his claims in the manner and within the period prescribed by the notice, issued under section 40-B, or on such claim having been so preferred by him and having been rejected, omits to institute a suit to recover possession of such timber within the further period specified in section 40-C, the ownership of such timber shall vest in the Government, or when such timber has been delivered to another person under section 40-C, in such other person free from all encumbrances not created by him.