Subject to the following provisions of this paragraph, a sewerage undertaker shall make full compensation to any person who has sustained damage by reason of the exercise by the undertaker, in relation to a matter as to which that person has not himself been in default, of any of its powers under the relevant sewerage provisions.

Subject to sub-paragraph (3) below, any dispute arising under this paragraph as to the fact of damage, or as to the amount of compensation, shall be referred to the arbitration of a single arbitrator appointed by agreement between the parties to the dispute or, in default of agreement, by the F1Director.

If the compensation claimed under this paragraph in any case does not exceed F2£5,000, all questions as to the fact of damage, liability to pay compensation and the amount of compensation may, F3be referred to the Director for determination under section 30A of this Act by either party.

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No person shall be entitled by virtue of this paragraph to claim compensation on the ground that a sewerage undertaker has, in the exercise of its powers under the relevant sewerage provisions, declared any sewer F5, lateral drain or sewage disposal works, whether belonging to that person or not, to be vested in the undertaker.