(2)If the owner or occupier of the premises, as the case may be, proves that any such projection, encroachment or obstruction has existed for a period sufficient under the law of limitation to give any person a prescriptive title thereto or that it was erected or made with the permission or licence of. any Municipal authority duly empowered in that behalf, and that the period, if any, for which the permission or licence is valid, has not expired, the [Municipality] [Substituted vide Orissa Act No. 11 of 1994 w.e.f. 31.5.1994.] shall make reasonable compensation to every person who suffers damage by the removal or alteration of the same.