(1) Subject to the provision of sub-section (2) whenever any land is acquired under section 6 or section 9 there shall be paid compensation the amount of which shall be determined by the Collector. In determining the amount of compensation the Collector shall take into consideration the market value of the land for a period of five years preceding the date of publication of the notice under sub-section (1) of section 6 where the land is acquired under the said section and where the land is acquired under section 9 from the date of passing the order under sub-section (1) of the said section. And the amount of compensation payable shall be on the basis of the average market value so arrived at:
Provided that where any building is acquired under section 6, the compensation shall be payable at the market value of the building on the date of publication of the notice under subjection (1) thereof:
[Provided further that in addition to the market value of the land or building, as above provided, the Collector shall in every case award a sum 15% of such market value, in consideration of the compulsory nature of the acquisition]6.
(2) When the compensation has been determined under sub-section (1), the Collector shall make and award in accordance with the principles set out in section 11 of the Land Acquisition Act, 1894 [Act 1 of 1894]
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(3) Where any land is requisitioned under section 3, there shall be paid to every person interested such compensation as may be agreed upon in writing between such person and the Collector or in the absence of agreement, reasonable compensation in respect of
(a) the requisition of such land; and
(b) the damage done during the period of requisition of such land other than what may have been sustained by reasonable wear and tear and irresistible force:
Provided that in determining the amount of compensation whether is the case of agreement or otherwise, such amount shall not exceed the rent payable at the prevailing market rate as may be determined by the Collector.