AAP Tax Law

Representation of the People Act, 1951

Section 161: Payment of Compensation for Election Requisition

Section 161 of the Representation of the People Act, 1951 governs payment of compensation when a State Government requisitions premises, vehicles, vessels or animals for election purposes under Section 160. It provides separate methods for assessing compensation, a right to seek arbitration and rules for disputes over entitlement or sharing of compensation.

Compensation for requisitioned premises: Section 161(1)

When premises are requisitioned under Section 160, compensation must be paid to the person interested. The amount is determined with reference to:

  1. The rent payable for the premises or, if no rent is payable, the rent payable for similar premises in the locality.
  2. Reasonable incidental expenses, if any, when the requisition forces the person interested to change residence or place of business.

First proviso: A person interested who is dissatisfied with the amount determined may apply to the State Government within the prescribed time to refer the matter to an arbitrator. The amount payable is then determined by the arbitrator appointed by the State Government.

Second proviso: A dispute about the right to receive compensation or its apportionment must be referred by the State Government to an arbitrator appointed by it, and decided in accordance with that arbitrator's determination.

Explanation - meaning of person interested: The expression means the person in actual possession of the premises immediately before requisition under Section 160; if nobody was in actual possession, it means the owner.

Compensation for vehicles, vessels or animals: Section 161(2)

When a vehicle, vessel or animal is requisitioned under Section 160, compensation is payable to its owner. The State Government determines the amount on the basis of the prevailing local fares or hiring rates for that vehicle, vessel or animal.

First proviso: An owner dissatisfied with the compensation may, within the prescribed time, apply to the State Government for referral to an arbitrator. Compensation is then fixed by the arbitrator appointed by that Government.

Second proviso - hire-purchase: Where, immediately before requisition, a vehicle or vessel was in the possession of a person other than the owner under a hire-purchase agreement, total compensation is divided between the owner and that person by agreement. If they cannot agree, an arbitrator appointed by the State Government decides the apportionment.

How to claim or dispute compensation

  1. Identify the written requisition order and the property covered under Section 160.
  2. Keep records of rent, comparable local rent or hiring rates, and any reasonable relocation expenses relevant to the claim.
  3. Review the amount determined by the State Government and the person to whom it is payable.
  4. If dissatisfied, submit an application to the State Government within the prescribed time requesting arbitration. Check the applicable election rules and requisition order for the procedure and deadline.
  5. If ownership, entitlement or division of compensation is disputed, seek a reference for determination by the appointed arbitrator.

Section 160: Authorises requisitioning for specified election purposes. Section 161: Establishes the compensation and arbitration framework. The India Code portal provides the central legislation; the Election Commission of India publishes election-related instructions and resources. The prescribed procedure may depend on applicable rules and orders.

This article explains the statutory framework. The exact compensation, applicable procedure and time limit depend on the circumstances and relevant rules.