Section 8 in The Punjab Requisitioning and Acquisition of Immovable Property Act, 1953
8. Principles and methods of determining compensation.
(1)Where any property is requisitioned or acquired under this Act there shall be given compensation which shall be determined in the manner and in accordance with the principles hereinafter set out, that is to say :-(a)where the compensation can be fixed by agreement, it shall be given in accordance with such agreement;(b)where no such agreement can be reached, the State Government shall appoint as arbitrator a person, who is, or has been, or is qualified for appointment as a Judge of a High Court;(c)the State Government may, in any particular case, nominate a person having expert knowledge as to the nature of the property requisitioned or acquired to assist the arbitrator 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 State 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 the provisions of sub-sections (2) and (3), so far as they are applicable.(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 Act, 1940, shall apply to arbitrations under this section.(2)The compensation for the requisitioning of any property shall consist of -(a)a recurring payment, in respect of the period of requisition of a sum equal to the rent which would have been payable for the use and occupation of the property, if it had been taken on lease for that period; and(b)such sum, or sums, if any, as may be found necessary to compensate the person interested for all or any of the following matters, namely :-(i)pecuniary loss due to requisitioning;(ii)expenses on account of vacating the requisitioned premises;(iii)expenses on account of re-occupying the premises upon release from requisition; and(iv)damages (other than normal wear and tear) caused to the property during the period of requisition, including the expenses that may have to be incurred for restoring the property to the condition in which it was at the time of requisition.(3)Where any property is acquired in connection with the new Capital of the State of Punjab[as that Capital and State existed immediately before the 1st November, 1966] [Inserted by the Punjab Adaptation of Laws (State and concurrent Subjects) Order, 1968.] compensation may be paid, whether by agreement or by award of the arbitrator, either in money or in kind or partly in money and partly in kind, and where there is no person competent to alienate the property or there is a person with limited interest in such property or there is any dispute as to the persons entitled to receive the compensation or as to the apportionment thereof, the arbitrator shall make an award in such manner or make an arrangement in such a way as may be equitable having regard to the interests of the persons concerned.(4)The compensation for the acquisition of any property under section 7, in the absence of an agreement shall be -(a)the price which the requisitioned property would have fetched in the open market, if it had remained in the same condition as it was at the time of requisitioning and been sold on the date of acquisition, or(b)twice the price which the requisitioned property would have fetched in the open market if it had been sold on the date of requisition, whichever is less.(5)Where there are several persons interested in the compensation, it shall be lawful for the State Government, either on its own motion, or on an application from any person interested to appoint the same or any other arbitrator to make an award or supplementary award in respect of the dispute.
