Payment of compensation

Payment of compensation.—(1) The Committee may make compensation out of the Town Area Fund to any person sustaining any damage by reason of the exercise of any of the powers vested in the Committee, its officers or servants under this Act, and shall make such compensation where the damage was caused by the negligence of the Committee, its officers or servants; and the person sustaining the damage was not himself in default in the matter in respect of which the power was exercised: Provided that if the amount of compensation in any case exceeds Rs. 300 the sanction of the officer authorised in this behalf by the Government and in case it exceeds Rs. 500 the sanction of the Minister, and if it exceeds Rs. 1,000 the sanction of the Government shall be required.

1. (2) Should any dispute arise touching the amount of any compensation which the Committee is required by this Act to pay for damage to any building or land, it shall be settled in such manner as the parties may agree on; in case of disagreement, the case will be referred to the [Government] whose decision will be final and binding on the parties.