(1) The Market Committee may require a Local Authority to transfer to it any land or building belonging to the Local Authority which is situated within the delineated market area and which, immediately before the establishment of the market yard was being used by the Local Authority for the purposes of the market and the Local Authority shall within one month of the receipt of the requisition, transfer the land and or building, as the case may be, to the Market Committee on such terms as may be agreed between them.
(2) Where within a period of thirty days from the date of receipt of requisition by the Local Authority under subsection (1) no agreement is reached between the Local Authority and the Market Committee under the said subsection, the land or building required by the Market Committee shall vest in the Market Committee for the purposes of this Act and the Local Authority shall be paid such compensation as may be determined by the Deputy Commissioner under subsection (5):
Provided that no compensation shall be payable to a Local Authority in respect of any land or building which had been vested in it by virtue of the provision contained in the enactment relating to the Constitution of such Local Authority without payment of any amount whatsoever may be, for such vesting;
Provided further that any party aggrieved by the order of the Deputy Commissioner may within thirty days from the date of such order, appeal to the State Government.
(3) The Local Authority shall deliver possession of the land or building vesting in the Market Committee under subsection (2) within a period of seven days from such vesting and on failure of the Local Authority to do so, within the period aforesaid, the Deputy Commissioner shall take possession of the land or building and cause it to be delivered to the Market Committee.
(4) The Deputy Commissioner shall fix the amount of compensation for the land or building having regard to
(i) the annual rent for which the building might reasonably be expected to be let from year to year;
(ii) the condition of the building;
(iii) the amount of compensation paid by the Local Authority for the acquisition of such land; and
(iv) the cost of the present value of any building erected or other work executed on the land by the Local Authority.
(5) The compensation fixed under subsection (4) may, at the option of the Market Committee, b e paid in lump sum or in reasonable number of equal installments with interest thereon as the Deputy Commissioner may fix.