39. Settlement of betterment charge by arbitrators.

(1) For the determination of the matter referred to in sub-section (4) of section 38, the Central Government shall appoint three arbitrators of whom one at least shall have special knowledge of the valuation of land.

(2) The arbitrators shall follow such procedure as may be prescribed by rules made in this behalf.

1[(2A) The arbitrators shall, for the purpose of determining any matter referred to them, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) when trying a suit, in respect of the following matters, namely:

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of documents;

(c) administering to any party to the arbitration such interrogatories as may, in the opinion of the arbitrators, be necessary.]

(3) In the event of any difference of opinion among the arbitrators the decision of the majority shall prevail and that decision shall be the award of the arbitrators.

(4) If any arbitrator dies, resigns, or is removed under sub-section (5) or refuses, or neglects in the opinion of the Central Government, to perform his duties or becomes incapable of performing the same, then the Central Government shall forthwith appoint another fit person to take the place of such arbitrator.

(5) If the Central Government is satisfied after such inquiry as it thinks fit

(a) that an arbitrator has misconducted himself, the Central Government may remove him from his office;

(b) that the award of the arbitrators has been improperly procured or that any arbitrator has misconducted himself in connection with such award, the Central Government may set aside the award.

1. Ins. by Act 56 of 1963, s. 19 (w.e.f. 30-12-1963).

(6) An Award which has not been set aside by the Central Government under clause (b) ofsub-section (5) shall be final and shall not be questioned in any court.

(7) The provisions of the Arbitration Act, 1940 (10 of 1940), shall not apply to arbitration under this section.