Section 272(2) in Karnataka Panchayat Raj Act, 1993
(2)Whenever in pursuance of section 271, the requisitioning authority requisitions any vehicle, vessel or animal the Zilla Panchayat, Taluk Panchayat or Grama Panchayat shall pay to the owner thereof compensation, the amount of which shall be determined by the requisitioning authority on the basis of fares or rates prevailing in the locality for the hire of such vehicle, vessel or animal:Provided that where the owner of such vehicle, vessel or animal 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 [Civil Judge (Junior Division)] [Substituted by Act 29 of 1997 w.e.f. 20.10.1997.] having jurisdiction in the locality and the amount of compensation to be paid shall be such as the [Civil Judge (Junior Division)] [Substituted by Act 29 of 1997 w.e.f. 20.10.1997.] may determine:Provided further that where immediately before the requisitioning the vehicle or vessel 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 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.