Government exercised his powers as such in an arbitrary or inequitable manner, he shall not be entitled to compensation under this section.

Collection in certain cases of water-rates of a canal by the State Government

1. (1) The '[State] Government may, at the request of the owner, undertake the collection of the water-rates leviable in respect of a canal for such period as may be agreed upon with him, and may, thereupon,-
   • (a) regulate such collection and determine the persons by whom it shall be made;
   • (b) direct that by way of payment for service rendered in making such collection, deductions shall be made not exceeding 3 per cent of the amount collected.
2. (2) During the period for which the '[State] Government has undertaken the collection of the water-rates leviable in respect of a canal, no suit for the recovery of any such rates shall be instituted.