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7 1960

PETROLEUM AND OTHER MINERALS DEVELOPMENT ACT, 1960

Chapter VII.

Provisions in relation to compensation payable under sections 12, 16, 18, 25 and 28.

“Compensation” (Chapter VII, Part II).

40. —In this Chapter “compensation” means compensation payable under section 12 , 16 , 18 , 25 or 28 of this Act.

Determination of amount of compensation.

41. —(1) The amount of compensation shall, in default of agreement, be determined by the Board in accordance with the provisions of this Chapter.

(2) Where compensation is payable by the Minister, the Minister shall not enter into any agreement fixing the amount thereof without the consent of the Minister for Finance.

Applications for compensation.

42. —(1) Where compensation is payable, the following persons, namely—

(a) the Minister,

(b) if the compensation is payable in respect of land which is subject to a land purchase annuity, the Land Commission,

(c) any person claiming to be entitled to such compensation may apply to the Board to determine the amount of such compensation.

(2) Subject to the provisions of this Chapter, the provisions of the Acquisition of Land (Assessment of Compensation) Act, 1919, shall apply to the determination of the amount of compensation.

Agreed compensation in respect of land subject to a land purchase annuity.

43. —Where the amount of compensation payable in respect of land is fixed by agreement, and the land in respect of which such compensation is payable is subject to a land purchase annuity, the following provisions shall have effect, that is to say:—

(a) the Land Commission shall be a party to such agreement;

(b) such compensation or so much thereof as is payable under such agreement to the Land Commission shall, when received by them, be applied by them in accordance with the following provisions, that is to say:—

(i) in case there are any arrears of such annuity and the amount so payable to the Land Commission (in this paragraph referred to as the said amount) does not exceed such arrears, in or towards discharge of such arrears,

(ii) in case there are any arrears of such annuity and the said amount exceeds such arrears—

(I) so much of the said amount as is equal to such arrears shall be applied in discharge of such arrears, and

(II) the balance of the said amount shall be applied in or towards redemption of such annuity,

(iii) in case there are no arrears of such annuity, in or towards redemption of such annuity;

(c) if the Land Commission is not a party to such agreement, the payment of the amount of the compensation fixed thereby shall not operate as a good discharge to the person paying the same of his liability to pay such compensation.

Fees on application for compensation.

44. —Whenever an application is made to the Board by any person, other than the Minister or the Land Commission, to determine compensation, such person shall pay to the Board in respect of such applications, such fee as the Minister, with the sanction of the Minister for Finance, shall prescribe.

Right of audience on hearing before the Board.

45. —On the hearing of any application for compensation, the following persons shall be entitled, by counsel or solicitor or in person, to appear, be heard and adduce evidence before the Board, that is to say:—

(a) the Minister;

(b) any person claiming to be entitled to such compensation;

(c) any person claiming to have an estate or interest in the land, mineral deposits or water supplies in respect of which such compensation is claimed;

(d) where compensation in respect of land is claimed and such land is subject to a land purchase annuity, the Land Commission;

(e) any person liable under the provisions of this Part to pay such compensation.

Awards of compensation.

46. —(1) The Board shall inquire into every application under this Chapter and shall, after such inquiry, make its award thereon.

(2) Every award (in this Chapter referred to as an award) made by the Board shall contain the following matters—

(a) a statement of the nature and amount of the compensation to be paid (if any);

(b) the name of the person by whom payment is to be made;

(c) the name of the person to whom payment is to be made;

(d) if the payment is to be made to two or more persons, the allocation of such amount amongst such persons;

(e) if the compensation, or any part thereof, is assessed in respect of any land for the time being subject to a land purchase annuity, the matters required by the next following section to be included in such award.

(3) Every award shall be signed by all the members of the Board.

(4) Every award shall be conclusive evidence of all matters purported to be certified therein.

(5) Any sum directed by an award to be payable by one person to another shall be a debt payable by such first mentioned person to such other person and shall be recoverable as a simple contract debt.

(6) A certificate, purporting to be certified by the secretary of the Board, which contains a statement of the following matters, namely:—

(a) the fact that the Board has made an award,

(b) the nature and amount of the compensation payable under such award,

(c) the person to whom such compensation is payable,

(d) the person by whom such compensation is payable,

shall be received in all legal proceedings as prima facie evidence of the matters so certified without proof of the signature of the person by whom such certificate purports to be certified or that he was in fact the secretary of the Board.

Awards of compensation in respect of land subject to a land purchase annuity.

47. —(1) (a) Where compensation is assessed by the Board in respect of land which is subject, but not in conjunction with other land, to a land purchase annuity, the Land Commission may, if they so think fit, request the Board—

(i) if the amount of such compensation is equal to or less than the redemption price of such annuity and the arrears (if any) of such annuity—to order by its award payment to the Land Commission of the whole or such part of the compensation as the Land Commission request, or

(ii) if the amount of such compensation exceeds the redemption price of such annuity and the arrears (if any) of such annuity—to order by its award payment to the Land Commission of so much of the compensation, not exceeding the amount of the said redemption price and arrears (if any), as the Land Commission request,

and the Board shall comply with such request.

(b) Where any award in relation to land which is subject, but not in conjunction with other land, to a land purchase annuity provides under paragraph (a) of this subsection for the payment of any moneys to the Land Commission, such moneys shall upon receipt thereof be applied by the Land Commission in accordance with the following provisions, that is to say—

(i) in case there are any arrears of such annuity and the amount of such moneys does not exceed such arrears—in or towards discharge of such arrears,

(ii) in case there are any arrears of such annuity and the amount of such moneys exceeds such arrears—

(I) so much of such moneys as is equal to such arrears shall be applied in discharge of such arrears, and

(II) the balance of such moneys shall be applied in or towards redemption of such annuity,

(iii) in case there are no arrears of such annuity— in or towards redemption of such annuity.

(2) (a) Where compensation is assessed by the Board in respect of land (in this paragraph referred to as the affected land) which is subject, in conjunction with other land, to a land purchase annuity and the Land Commission apportion the annuity between the affected land and the other land, the Land Commission may, if they so think fit, request the Board—

(i) if the amount of such compensation is equal to or less than the redemption price of so much of such annuity as is apportioned to the affected land and the arrears (if any) of such annuity—to order by its award payment to the Land Commission of the whole or such part of the compensation as the Land Commission request, or

(ii) if the amount of such compensation exceeds the said redemption price and the arrears (if any) of such annuity—to order by its award payment to the Land Commission of so much of the compensation, not exceeding the amount of the said redemption price and the arrears (if any) of the annuity, as the Land Commission request,

and the Board shall comply with such request.

(b) Where an award in relation to land (in this paragraph referred to as the affected land) which is subject, in conjunction with other land, to a land purchase annuity provides for the payment under paragraph (a) of this subsection of any moneys to the Land Commission, such moneys shall upon receipt thereof be applied by the Land Commission as follows—

(i) in case there are any arrears of such annuity and the amount of such moneys does not exceed such arrears—in or towards discharge of such arrears,

(ii) in case there are any arrears of such annuity and the amount of such moneys exceeds such arrears—

(I) so much of such moneys as is equal to such arrears shall be applied in discharge of such arrears, and

(II) the balance of such moneys shall be applied in or towards redemption of so much of such annuity as is apportioned to the affected land,

(iii) in case there are no arrears of such annuity—in or towards redemption of so much of such annuity as is apportioned to the affected land.

Basis for assessment of compensation in respect of ancillary rights payable under section 25.

48. —Where compensation is payable under section 25 of this Act for ancillary rights acquired by the Minister under a working facilities acquisition order, the following provisions shall have effect for the purpose of determining the amount of such compensation—

(a) the Board shall assess such compensation on the basis of what would be fair and reasonable as the consideration for a bargain between a willing grantor and a willing grantee,

(b) for the purposes of paragraph (a) of this subsection, the Board shall have regard to the conditions subject to which such ancillary rights were held prior to being so acquired and also to the conditions under which and the period for which they were so acquired.