(1) The 1[Tahsildar]1 may declare the occupancy or alienated holding in respect of which an arrear of land revenue is due, to be forfeited to the State Government, and sell or otherwise dispose of the same under the provisions of sections 87 and 88 and credit the proceeds, if any, to the defaulter‘s account:
Provided that the 1[Tahsildar]1 shall not declare any such occupancy or alienated holding to be forfeited,—
(a) unless previously thereto he shall have issued a proclamation and written notices of the intended declaration in the manner prescribed under section 168 for effecting sales of immoveable property; and
(b) until after the expiration of at least fifteen days from the latest date on which any of the said notices shall have been published as prescribed under section 168:
[Provided further that notwithstanding anything contained in sub-section (1) of section 87, the Tahsildar shall not declare any such occupancy or alienated holding, to be forfeited to the State Government, where the arrears of land revenue due, does not exceed rupees ten thousand.]1
(2) When any occupancy or alienated holding is declared forfeited under sub-section (1), the 1[Tahsildar]1 may, before such occupancy or alienated holding is sold or otherwise disposed of, cancel the declaration of forfeiture, if the defaulter or any person interested in the occupancy or alienated holding pays the entire arrears of land revenue due and all expenses incurred so far in the recovery proceedings as may be fixed by the 1[Tahsildar.]1