Payment of compensation

(1) Whenever in pursuance of section 4, any movable or immovable property is requisitioned or acquired, there shall be paid compensation determined in the manner and in accordance with the principles hereinafter set out, that is to say,- (a) where the amount of compensation can be fixed by agreement, it shall be paid in accordance with such agreement. ; (b) where no such agreement can be reached, the State Government shall appoint as arbitrator, the District Judge or Subordinate Judge having jurisdiction over the area in which the movable property is requisitioned or acquired or in which the immovable property is situated, Explanation.-For the purpose of this clause, the expression "District Judge" includes a Judge of the Madras City Civil Court. (c) At the commencement of the proceedings before the arbitrator, the State Government and the person to be compensated shall state what in their respective opinions is a fair amount of compensation. (d) The arbitrator in making his award shall have regard- (i) in the case of movable property, to its market value ; (ii) in the case of immovable property, to the provisions of sub-section (1) of the section 23 of the Land Acquisition Act, 1894, so far as the same can be made applicable and to the fact whether the acquisition is of a permanent or temporary character : Provided that where any property requisitioned is subsequently acquired, the arbitrator, in any proceedings in connexion with such acquisition, shall, for the purposes of this clause, take into consideration the market value of the property at the date of the requisition as aforesaid and not at the date of its subsequent acquisition. (e) An appeal shall lie to the High Court against the award of an arbitrator where the value of the subject-matter in dispute in appeal is Rs. 2,000 and above. Explanation.-In the case of periodical payments the value of the subject-matter in appeal shall be deemed to be five times the amount in dispute calculated for one year. (f) Save as provided in this section and in any rules made under this Act, nothing in any law for the time being in force relating to arbitration shall apply to arbitrations under this section. (2) The State Government may, with a view to requisitioning or acquiring any property under section 4, by order.- (a) require any person to furnish to such authority as may be specified in the order such information in his possession relating to the property as may be so specified ; (b) direct that the owner, occupier or person in possession of the property shall not, without the permission of the State Government, dispose of it or where the property is a building, structurally alter it or where the property is movable, remove it from the premises in which it is kept, until the expiry of such period as may be specified in the order.