(1) For the properties both movable and immovable which come into possession and ownership of the State Government under Section 3, there shall be paid-compensation, the amount of which shall be determined in the manner and in accordance with the principles hereinafter set out, that is to say
(a) where the amount of compensation can be fixed by agreement, it shall be paid in accordance with such agreement;
(b) where no such agreement can be reached, the State Government shall appoint as arbitrator a person who is or has been or is qualified for appointment as a District and Sessions Judge;
(c) the State Government may nominate a person having expert knowledge as to the nature of the property taken possession of by the State. Government to assist the arbitrator and where any such nomination is made, the person to be compensated may also nominate an assessor for the same purpose;
(d) at the commencement of the proceeding before the Arbitrator, the State Government and the person to be compensated shall state what in their respective opinion is a fair amount of compensation;
(e) the Arbitrator shall after hearing the dispute make an award determining, the amount of compensation which appears to him to be just and specifying the person or persons to whom such compensation shall be paid, and in making the award, he shall have regard to the circumstances of each case;
(f) where there is a dispute as to the person or persons who are entitled to the compensation, the arbitrator shall decide such dispute and if the Arbitrator, finds that more persons than one are entitled to compensation, he shall apportion the amount thereof amongst such persons;
(g) nothing in the Arbitration Act, 1940 (10 of 1940) shall apply to arbitration under this Section.
(2) In determining the compensation the Arbitrator shall alongwith other circumstances consider the book value of the properties of the Club at the time of the transfer of their ownership to the State Government.
Explanation. For the purposes of this sub-section book value of the properties shall be deemed to be the depreciated book value of all lands, buildings and other movable properties of the Club.
(3) Notwithstanding anything contained in any other law for the time being in force, no person in respect of any contract of management or other arrangement which is terminated by reason of the provisions contained in Section 3 or who ceases to hold any office shall be entitled to claim any compensation for the premature termination of the contract or management for loss of the office.
Miscellaneous