Chapter VI PAYMENT OF COMPENSATION FOR LOSS OR DAMAGE

1. (1) If in consequence of any direction contained in any notification issued under sub-section (1) of section 18, any person sustains any loss or damage, such person shall be paid compensation the amount of which shall be 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 Central Government shall appoint as arbitrator a person who is or has been qualified for appointment as a Judge of a High Court;
   • (c) the Central Government may, in any particular case, nominate a person having adequate knowledge as to the nature of the loss or damage suffered by the person to be compensated and where such nomination is made, the person to be compensated may also nominate an assessor for the same purpose;
   • (d) at the commencement of the proceedings before the arbitrator, the Central Government and the person to be compensated shall state what, in their respective opinion, is a fair amount of compensation;
   • (e) the 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,---
     • (i) the damage sustained by the person to be compensated in his earnings;
     • (ii) if in consequence of any direction contained in any notification issued under sub-section (1) of section 18, the market value of the land immediately after the issue of such notification is diminished, the diminution in such market value;
     • (iii) where any building or structure has been demolished or any tree has been cut or the height of any building, structure or tree has been reduced in pursuance of any direction, the damage sustained by the person to be compensated in consequence of such demolition, cutting or reduction and the expenses incurred by such person for such demolition, cutting or reduction;
     • (iv) if the person to be compensated is compelled to change his residence or place of business, the reasonable expenses, if any, that may have to be incurred by him incidental to such change;
   • (f) where there is any dispute as to the person or persons who are entitled to the compensation, 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 thereof amongst such persons;
   • (g) nothing in the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to arbitrations under this section.
2. (2) Every award made by the arbitrator under clause (e) of sub-section (1) shall also state the amount of costs incurred in the proceedings before it and by what persons and in what proportions they are to be paid.

Any person aggrieved by an award of the arbitrator made under section 22 may, within thirty days from the date of such award, prefer an appeal to the High Court within whose jurisdiction the aerodrome is situate: Provided that the High Court may entertain the appeal after the expiry of the said period of thirty days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.

The arbitrator appointed under section 22, while holding arbitration proceedings under this Act, shall have all the powers of a civil court while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:---

1. (a) summoning and enforcing the attendance of any person and examining him on oath;
2. (b) requiring the discovery and production of any document;
3. (c) reception of evidence on affidavits;
4. (d) requisitioning any public record from any court or office;
5. (e) issuing commissions for examination of witnesses.