Report No. 10
8. The Madras Essential Articles Control and Requisitioning (Temporary Powers) Act, 1949 (XXIX of 1949) re-enacted by VI of 1956
Section 4 provides that the State Government may, for the purpose of maintaining, increasing and securing supplies of any essential article or for the equitable distribution of the same, by order in writing requisition any property. Property used for the purpose of religious worship has been exempted. It is further provided that buildings solely used for residential purposes shall not ordinarily be requisitioned.
The State Government may acquire the requisitioned property by publishing a notice in the gazette to that effect.
Section 5 deals with the procedure and principles of payment of compensation for the requisitioned or acquired property.
Compensation shall be the amount fixed by agreement or in the absence of agreement, the State Government shall appoint as arbitrator the District Judge or Subordinate Judge having jurisdiction over the area in which the property is situate. District Judge for this purpose includes a judge of the Madras City Civil Court. Before the arbitrator the Government as well as the person to be compensated shall state what in their respective opinions is a fair amount of compensation. The arbitrator in making his award shall be guided by the provisions of sub-section (1) of section 23 of the Land Acquisition Act, 1894 so far as it can be made applicable.
He shall also have regard to the fact whether the acquisition is of a permanent or temporary character. It is also provided that where the requisitioned property is subsequently acquired, the arbitrator shall take into consideration the market value of the property at the date of the requisition and not at the date of its subsequent acquisition. It is also provided that an appeal shall lie to the High Court against the award of the arbitrator where the value of the subject-matter in dispute is Rs. 2000 and above. Nothing in any law relating to arbitration shall apply to arbitrations under this section.