(1) In order to prevent or suppress any riot or grave disturbance of peace, the Commissioner or in his absence and subject to his control the Deputy Commissioner of Police and the Superintendent, within the areas under their respective charges, may temporarily close, or take possession of any building or place, and may exclude all or any persons therefrom, or may allow access thereto to such persons only and on such terms as he shall deem expedient. All persons concerned shall be bound to conduct themselves in accordance with such orders as the authority making orders may make and notify in exercise of the authority hereby vested in it.
(2) If the lawful occupier of such building or place suffers substantial loss or injury by reason of the action taken under sub-section (1), he shall be entitled, on application made to the authority concerned within one month from the date of such action, to receive reasonable compensation for such loss or injury, unless such action was in the opinion of such authority rendered necessary either by the use to which such building or place was put or intended to be put or by the misconduct of persons having access thereto.
(3) In the event of any dispute in any case under sub-section (2), as to the amount (if any) to be paid, and as to the person to whom it is to be paid such dispute shall be decided by the judicial officer exercising powers and performing the functions of a Magistrate of the First Class.