Compensation for requisitioning.

§5

Summary

(1) The compensation payable in respect of requisitioning of any motor vehicle shall be the sum total of the following items :- (i) interest on the cost at which the owner had purchased the vehicle calculated in a manner and at a rate, not being less than 3 per cent. and above 6 per cent. per annum, that may be prescribed for all or any class of motor vehicles : Provided that, where the vehicle had been obtained by the owner as a gift or its cost cannot be established by him to the satisfaction of the State Government or its cost exceeds the current replacement price of the vehicle, the current price of the same vehicle or vehicle which, in the opinion of the State Government, is substantially similar to it, shall be taken to be its cost ; (ii) an amount representing depreciation of the vehicle during the period of its requisitioning calculated at a rate not exceeding 30 per cent. per annum and in a manner that may be prescribed for all or any class of motor vehicles ; (iii) an amount for the loss of the use of the vehicle or of any profits that might have been earned but for the requisitioning, at such percentage not being less than 3 per cent. per annum, as may be prescribed, of the cost referred to in clause (i) above as reduced by depreciation calculated at the same rate as for clause (ii) above in such manner and for such period as may be so prescribed ; (iv) any further amount that the State Government may by general or special order specify : Provided that, if during the period of requisitioning the vehicle is damaged otherwise than by normal wear and tear, or lost at a time when it is not insured, there shall be paid to the owner additional compensation of a sum equal to the cost of making good the damage or, in the case of a total loss, a sum equal to the compensation that may be payable if the property is acquired on the date of the loss, such compensation being determined in the prescribed manner. (2) Where the owner is aggrieved by the amount of compensation determined in accordance with sub-section (1), he may make an application within such time and in such form and manner as may be prescribed to the State Government, for referring the matter to an arbitrator appointed in this behalf by that Government. Such arbitrator shall be a person who has had judicial experience. The amount of compensation to be paid shall be such as may be determined by the arbitrator in accordance with sub-section (1). (3) Where there is any dispute as to the title to receive the compensation or as to the apportionment of the amount of compensation, it shall be referred to such arbitrator appointed in this behalf by the State Government for determination, and shall be determined in accordance with the decision of such arbitrator. (4) Any decision of the arbitrator under sub-section (2) or (3) shall be final.

(1) The compensation payable in respect of requisitioning of any motor vehicle shall be the sum total of the following items :- (i) interest on the cost at which the owner had purchased the vehicle calculated in a manner and at a rate, not being less than 3 per cent. and above 6 per cent. per annum, that may be prescribed for all or any class of motor vehicles : Provided that, where the vehicle had been obtained by the owner as a gift or its cost cannot be established by him to the satisfaction of the State Government or its cost exceeds the current replacement price of the vehicle, the current price of the same vehicle or vehicle which, in the opinion of the State Government, is substantially similar to it, shall be taken to be its cost ; (ii) an amount representing depreciation of the vehicle during the period of its requisitioning calculated at a rate not exceeding 30 per cent. per annum and in a manner that may be prescribed for all or any class of motor vehicles ; (iii) an amount for the loss of the use of the vehicle or of any profits that might have been earned but for the requisitioning, at such percentage not being less than 3 per cent. per annum, as may be prescribed, of the cost referred to in clause (i) above as reduced by depreciation calculated at the same rate as for clause (ii) above in such manner and for such period as may be so prescribed ; (iv) any further amount that the State Government may by general or special order specify : Provided that, if during the period of requisitioning the vehicle is damaged otherwise than by normal wear and tear, or lost at a time when it is not insured, there shall be paid to the owner additional compensation of a sum equal to the cost of making good the damage or, in the case of a total loss, a sum equal to the compensation that may be payable if the property is acquired on the date of the loss, such compensation being determined in the prescribed manner. (2) Where the owner is aggrieved by the amount of compensation determined in accordance with sub-section (1), he may make an application within such time and in such form and manner as may be prescribed to the State Government, for referring the matter to an arbitrator appointed in this behalf by that Government. Such arbitrator shall be a person who has had judicial experience. The amount of compensation to be paid shall be such as may be determined by the arbitrator in accordance with sub-section (1). (3) Where there is any dispute as to the title to receive the compensation or as to the apportionment of the amount of compensation, it shall be referred to such arbitrator appointed in this behalf by the State Government for determination, and shall be determined in accordance with the decision of such arbitrator. (4) Any decision of the arbitrator under sub-section (2) or (3) shall be final.

← Previous Section Next Section →

Explore this Chapter