Partition is permissible. 

Section 34 of OCH &PFL  provides 

34. Prevention of fragmentation - (1) No agricultural 1and in the locality shal1 be transferred or partitioned so as to create a fragment.

2) 

(m) "fragment" means a compact parcel of agricultural land held by a land-owner by himself or jointly with others comprising an area which is less than -

(i) one acre in the district of Cuttack, Puri, Balasore and Ganjam and in the Anandpur subdivision in the district of Keonjhar, and

(ii) two acres in the other areas of the State;

3) in your case since land is more than 2 acres or can be partitioned 

Dear Client,

The Indian Succession Act, 1925, allows the division of ancestral land regardless of the size of the land, as long as all the heirs agree to the division. Further the land must be capable of being divided into economically viable.

Steps to follow.

1. Get the consent of all the heirs in writing.
2. File a partition suit in the civil court.
3. The court will appoint a commissioner to divide the land.
4. The commissioner will divide the land in a way that is fair to all the heirs.

Orissa govt land settlement rules is only for settlement of govt land .could not find any provision mentioned by you in said rules 

If it is ancestral property, then all the shareholders have to agree for the proposed division or partition.

If there is no cooperation among the shareholders, then  the aggrieved person can approach court for the relief.

The land can be partitioned among the shareholders.

As per Orissa Consolidation Of Holdings And Prevention Of Fragmentation Of Land Act, 1972 ,Section 34 of the Act provides for prevention of fragmentation of consolidable land by way of transfer or partition so as to create a fragment. It is apt to note the relevant portion of the Section 34. Under Sub-section (1), no agricultural land in a locality shall be transferred or partitioned so as to create a fragment. 

fragment" means a compact parcel of agricultural land held by a land-owner by himself or jointly with others comprising an area which is less than:

(i) one acre in the district of Cuttack, Puri, Balasore and Ganjam and in the Anandpur subdivision in the district of Keonjhar, and

(ii) Two acres in the other areas of the State;

This being the definition of fragment, as this case relates to the district of Puri, any compact portion of agricultural land, which is less than one acre is considered to be a fragment.

Yes he has to go for partition suit