Provided further that in the case of building used as human dwellings, due regard shall be paid to the social and religious customs of the occupiers.

Arbitration in cases ofcompensation, etc.-(1) If an agreement is not arrived at with respect to any compensation or damages which are by this Act directed to be paid the amount and if necessary the appointment of the same shall be ascertained and determined by a Panchayat of three persons of whom one shall be appointed by the Council, one by the party to or from whom such compensation or damages may be payable or recoverable, and one, who shall be Sarpanch, shall be selected b the nmembers already appointed as above.

1. (2) If either party or both parties fail to appoint members within one month from the date of either party receiving written notice from the other of claim to such compensation or damages,

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।

or if the members fail to select a Sarpanch, such members as may be necessary to constitute the Panchayat shall be appointed at the instance of either party, by the District Court.

1. (3) In the event of the Panchayat not giving a decision within one month from the date of the section of the Sarpanch or of the appointment by the District Court of such members as may be necessary to constitute the Panchayat, the matter shall on application by either party, be determined by the District Court which shall, in cases in which the compensation is claimed in respect of land follow, as far as may be, the procedure provided in the Land acquisition Act, 1894 (1 of 1894), for proceedings in matters referred for the determination of the Court: Provided that-
   • (a) no application to the Collector for a reference shall be necessary; and
   • (b) the Court shall have full power to give and appropriation the costs of all proceedings in the manner it thinks fit.
2. (4) In any case where the compensation is claimed in respect of land and the Panchayat has given a decision, either party, if dissatisfied with the decision may within a month of the date thereof apply to the District Court and the matter shall be determined by the District Court in accordance with the provisions of sub-section (3).
3. (5) In any case where the compensation is claimed in respect of any land or building the Council

may after the award has been made by the Panchayat or the District Court, as the case may be,

take possession of the land or building after paying the amount of the compensation determined by the Panchayat or the District Colurt to the party to whom such compensation may be payable. If such party refuses to building or if there is any dispute as to the title to the compensation or as to the appointment of it, the Council shall deposit the amount of the compensation in the District Court.

1. (6) In the absence of any express provision to the contrary, the compensation payable under this Act shall determined in accordance with the principles laid down in the Land acquisition Act 1894 (1 of 1894).