Section 264E(2) in The U.P. Kshettra Panchayats And Zila Panchayats Adhiniyam, 1961
(2)Whenever in pursuance of Section 264-D, the District Magistrate requisitions any vehicle, vessel or animal, there shall be paid to the owner thereof compensation the amount of which shall be determined by the District Magistrate on the basis of the 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 the prescribed time to the District Magistrate 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 District Magistrate 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 payable in respect of 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 an arbitrator appointed by the District Magistrate in this behalf may decide.
