Section 206(2) in Andhra Pradesh Panchayat Raj Act, 1994
(2)Whenever in pursuance of Section 205, the A.P. Election Commissioner for Local Bodies requisitions any vehicle, there shall be paid to the owner thereof compensation the amount of which shall be determined by the A.P. Election Commissioner for Local Bodies on the basis of the fares or rates prevailing in the locality for the hire of such vehicle:Provided that where the owner of such vehicle, being aggrieved by the amount of compensation so determined, makes an application within the prescribed time to the A.P. Election Commissioner for Local Bodies for referring the matter to an arbitrator, the amount of compensation to be paid shall be such as the arbitrator appointed in this behalf by the A.P. Election Commissioner for Local Bodies may determine:Provided further that where immediately before the requisitioning, the vehicle 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 default of agreement, in such manner as the arbitrator appointed by the A.P. Election Commissioner for Local Bodies in this behalf may decide.
