Payment of compensation

(1) Whenever the State Government requisitions any premises under section 160-A, compensation shall be paid to the persons interested, the amount of which shall be determined by taking the following into consideration, that is to say: (i) the rent payable in respect of the premises or if no rent is so payable, the rent payable for similar premises in that locality; (ii) if the person interested is compelled to change his residence or place of business as a result of the requisition of the premises, reasonable expenses (if any) incidental to such change: Provided that where any person interested, being aggrieved by the amount of compensation so determined, makes an application to the State Government within the prescribed time that the matter be referred to an arbitrator, the amount of compensation to be paid shall be such as the arbitrator appointed by the State Government for this purpose may determine: Provided further that where there is any dispute as to the title to receive the compensation or as to the apportionment of the amount of compensation, it shall be referred by the State Government to an arbitrator appointed by it for this purpose and shall be determined in accordance with the decision of such arbitrator. Explanation: In this sub-section, the expression "person interested" means the person who was in actual possession of the premises requisitioned under section 160-A immediately before the requisition, or where no person was in such actual possession, the owner of such premises. (2) Whenever the State Government requisitions any vehicle, vessel or animal under section 160-A, compensation shall be paid to the owner thereof, the amount of which shall be determined by the State Government on the basis of the fares or rates prevailing in the locality for the hire of such vehicle, vessel or animal: Provided that where the owner of such vehicle, vessel or animal, being aggrieved by the amount of compensation so determined, makes an application to the State Government within the prescribed time that the matter be referred to an arbitrator, the amount of compensation to be paid shall be such as the arbitrator appointed by the State Government for this purpose may determine: Provided further that where immediately before the requisition the vehicle or vessel was by virtue of a hire purchase agreement in the possession of a person other than the owner, the amount determined under this sub-section as the total compensation payable in respect of the requisition shall be apportioned between that person and the owner in such manner as they may agree upon, and in the absence of such agreement, in such manner as an arbitrator appointed by the State Government for this purpose may decide.