(2)Whenever in pursuance of section 203, the requisitioning authority requisitions any vehicle or vessel, the Panchayat, or Zilla Panchayat shall pay to the owner thereof compensation, the amount of which shall be determined by the requisitioning authority on the basis of fair rates prevailing in the locality for the hire of such vehicle or vessel:Provided that where the owner of such vehicle or vessel being aggrieved by the amount of compensation so determined, makes an application within thirty days to the requisitioning authority, the matter shall be referred to the Court having jurisdiction in the locality and the amount of compensation to be paid shall be such as the Court may determine:Provided further that where immediately before the requisitioning, the vehicle or vessel was, by virtue of hire purchase agreement, in the possession of a person other than the owner, the amount determined under this sub-section as the total compensation 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 an arbitrator appointed by the requisitioning authority in this behalf may decide.
