(1) Where the property in any dung vests in any person or class of persons other than the municipality, the municipality, required under the last preceding section, shall acquire, either permanently or for such period as it may deem fit, the rights or interests in the dung belonging to the aforesaid persons, on payment of such compensation as the municipality may consider reasonable and may assess the same in the manner hereinafter provided.
(2) Where any such dung is requisitioned or acquired under this section the amount of compensation payable shall be determined in the manner and in accordance with the principles enumerated below:––
(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 municipality and the person or persons as aforesaid shall appoint an arbitrator having knowledge of the price of the property or interest in the dung requisitioned or acquired ;
(c) at the commencement of the proceedings before the arbitrator, the municipality and the person to be compensated shall state what, in their respective opinion is the fair amount of compensation ;
(d) the arbitrator in making his award shall take into consideration the market value of the dung in the locality, the damage, if any, resulting from diminution of the profits accruing to the person or persons aforesaid and any other factor of a like nature ; and
(e) save as otherwise hereinafter provided in the Act or the rules, nothing in any other law for the time being in force shall apply to arbitration under this section.
(2) Where any such dung is requisitioned or acquired under this section the amount of compensation payable shall be determined in the manner and in accordance with the principles enumerated below:––
(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 municipality and the person or persons as aforesaid shall appoint an arbitrator having knowledge of the price of the property or interest in the dung requisitioned or acquired ;
(c) at the commencement of the proceedings before the arbitrator, the municipality and the person to be compensated shall state what, in their respective opinion is the fair amount of compensation ;
(d) the arbitrator in making his award shall take into consideration the market value of the dung in the locality, the damage, if any, resulting from diminution of the profits accruing to the person or persons aforesaid and any other factor of a like nature ; and
(e) save as otherwise hereinafter provided in the Act or the rules, nothing in any other law for the time being in force shall apply to arbitration under this section.
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Definitions.Section 2A · Substitution of expression.Section 3 · Classification of municipalities.Section 4 · Procedure for declaring muni-cipal area.Section 5 · Notification of intention to include a local area in a municipal area.Section 6 · Notification of intention to exclude local area from a municipal area.Section 7 · Exclusion of local area from a municipal area.India Code, Government of India. Text fetched 13 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.