(1) If the State Government is satisfied that it is necessary to utilise the water of any private water-work, the State Government may, by order, direct the owner or other person in charge of such private water-work to supply water to a specified industrial concern or local authority in such quantities and in such manner as may be specified in the order.
(2) Compensation how determined. Whenever an order under sub-section (1) is made, the owner shall be paid compensation determined in the manner and in accordance with the principles hereinafter set out, that is to; say,
(i) where the amount of compensation can be fixed by agreement, it shall be paid in accordance with such agreement;
(ii) where no such agreement can be reached the State Government shall appoint as arbitrator the District Judge or the Additional District Judge or any Civil Judge having jurisdition over the area in which the private water-work is situate;
(iii) at the commencement of the proceedings before the arbitrator, the representative of the industrial concern or the local authority, as the case may be, and the person to be compensated shall state what in their respective opinion is a fair amount of compensation;
(iv) the arbitrator in making his award shall have: regard to the provisions of sub-section (1) of section 23 of the Land Acquisition Act, 1894 (1 of 1894) so for as the same can be made applicable and also to any reasonable extent of damage suffered by the owner;
(v) save as provided in this section and in any rules made thereunder, nothing in any law for the time being in force shall apply to arbitrations under this section.
(3) The decision given by an arbitrator shall be final and shall not be called into question before any authority.
(4)(a) The State Government may make rules for the purpose of carrying into effect the provisions of this section.
(b) In particular and without prejudice to the generality of the foregoing power such rules may prescribed
(i) the procedure to be followed in arbitrations under this section and the manner and time of payment of compensation;
(ii) the principles to be followed in apportioning the costs of proceedings before the arbitrator.
(5) The payment of compensation under this section to any person appearing entitled to it in the opinion of the State Government or the arbitrator, as the case may be, shall be a full discharge of the State Government, the industrial concern of the local authority, as the case may be, from all liability in respect of such compensation but shall not prejudice any rights in respect of the use of the private water-work under this section which any other person may be entitled by due process of law to enforce against the person to whom compensation has been paid as foresaid.
(6) If the owner or the person in charge of the private water-work fails to give effect to the direction given under sub-section (1) the State Government may, without prejudice to any other action under the Act, authorise, by an order any officer to take or caused to be taken such steps and use or caused to be used, such force as may, in the opinion of such officer, be reasonably necessary for securing compliance with the directions given under sub-section (1).
(7) If it appears to the State Government that it is necessary to get any work constructed for making the water-work efficient, it may direct the industrial concern or the local authority specified under sub-section (1) to get such work constructed at its cost in such manner and subject to such conditions as may be prescribed.