State Act

THE UNITED PROVINCES PROVINCIALIZATION OF HOSPITALS ACT, 1947

6- Nothing in this Act shall be deemed to authorize the acquisition of any private right interest in any hospital, or in any portion thereof, without the payment of compensation in the manner and in accordance with the principles hereinafter set out, that is to say- (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 it shall be determined in the prescribed manner by an arbitrator of prescribed qualification appointed by the [State Government]1; (c) the arbitrator in assessing the compensation take into considerations (i) in case of immovable property, the original cost of construction and the cost of any subsequent addition or alteration and in case of movable property, the original cost of purchase, and (ii) depreciation on account of wear and tear : Provided that the arbitrator shall not take into consideration any appreciation in the value of materials, buildings or land on account of wartime conditions ; (d) the provisions of the Indian Arbitration Act, 1940 shall apply to the arbitration proceedings as far as the same can be made applicable.