Principles and methods of determining compensation

(1 1) Where any properly is rcqujsi tioned or acquircd under his Act. there shall be paid corn~ensation the amount of which shdl be dc termined in thc manner and in accordance with thc principles hereinafter set out, that is to say, -

1. (a) where the amount of compensation can be fixed by agreemept, it shall be paid in accordance with such agreement ;
2. (b) where no such agreement can be reached, the Stare Government shall appoint as arbibator a person who is, or has been, or is qualified for appointment as, a Judge of a High Court ;
3. (c) the State Government may, in any particular case, nominate a person having expen knowledge as to the nature of the propeny requisitioned or acquired to assist the arbitrator and where such nomination is made, the person to be compensated may also nominate an assessor for the same purpose ;
4. (d) at the co&ncernent of the proceedings before the arbitrator, the Srate Government and the person to be compensated shall state what in theirrespectiveopinion is a fair amount of compensation ;
5. (e) he arbitrator shall, after hearing the dispute, make an award determining the amount of compensation which appears to him to be just and specify the person or persons to whom such compensation shall be paid ; and in making the award, he shall have regard to the circumstances of each case and the provisions of sub-sections

1. (2) and (3), so far as they are applicable ;
   • (f) where there is any dispute as to the person or persons who are entitled to the compensatian, the arbitrator shall decide such dispute and if the arbitrator finds that more persons than one are entitled to compensation, he shall apportion the amount rhercof amongst such persons ;
   • (g) nothing in the Arbitration Act, 1940 (Central Act 10 of 19401, shall apply ro arbitration under this section.
2. (2) The amount of compensation payable for the requisitioning I of any property shall consist- of-
   • (a) a recurring payment, in respect of the period of requisition, of a sum equal to the rent which whould have been payable for the use and occupation of the property, if it had been taken on lease for that period ; and
   • (b) such sum or sums, if any, as may be found necessary to compensate the persons interested for all or any of the following matters, namely :-
     • (i) pecuniary l bss due to requisitioning ;
     • (ii) expenses on account of vacating the requisitioned permi ses ;
     • (iii) expenses on account of re-occupying the premises upon release from requisition ; and
     • (iv) damages (other than normal wear and tear) caused to the property during the period of requisition, including the expenses that may have to be incurred for restoring the property to the condition in which it was at the time of requisition.
3. (3) The amount of compensation payable for the acquisition of any property under section 9, in Ihe absence of an agreement, shall be the price which the requisitioned property would have fetched in the open market. if it had-remained in the same condition as it was at the time of requisitioning and been sold on the date of acquisition.
4. (4) Where there are severaI persons interested in the compensation, it shall be lawful for the State Government, either on its own motion, or on an applicalion horn any person interested, to appoint the same or any other arbitrator to make an award or supplementary award in respect of the dispute.