Effect of revocation

(1) The revocation of a contract pursuant to section 38 of this Act, shall entail the immediate cessation of all rights and privileges conferred on the contractor by virtue of such contract, the devolution to the Government of the contract area and the automatic forfeiture of any guarantees submitted by the contractor to secure the fulfilment of the obligations undertaken. (2) Revocation under section 38 shall not in any way affect the liability of any person concerned arising out of such breach before such revocation, and shall not be a bar to any legal proceedings relating thereto.