[ 4. (1) Whenever and motor vehicle is requisitioned under Section 3, there shall be paid to the owner thereof compensation the amount of which shall be determined by the District Magistrate on the basis of the rate prevailing in the locality for the hire of such vehicle after taking into account the provisions of Section 4-A:
Provided that where the owner of such vehicle being Aggrieved by the amount of compensation so determined makes an application within the prescribed time to the District Magistrate for referring the matter to an arbitrator, the amount of compensation to be paid shall be such as the arbitrator appointed in this behalf by the State Government may determine ;
Provided further that where immediately before the requisitioning the vehicle was the subject of a hire-purchase agreement, the amount determined under this sub-section as the total compensation payable in respect of the requisition shall be apportioned between the hirer and the financier in such Manner as they may agree upon, and in default of agreement, in such Manner as an arbitrator appointed in this behalf by the State Government may decide.
(2) The arbitrator shall be a person who is qualified for appointment as a Judge of a High Court.
(3) The award of the arbitrator under sub-section (1) shall be final.
(4) All other matters relating to arbitration under this section shall be governed by rules made under this Act, and except as provided in such rules, nothing in the Arbitration Act, 1940, shall apply to it. ]