(1) When a dispute arises regarding the amount of compensation which the municipality is required by this Act to pay, it shall be settled in such manner as the parties may agree, in default of agreement, by the Deputy Commissioner upon application made to him by the municipality or the person claiming compensation.
     (2) If the municipality or the person claiming compensation is not satisfied with the decision of the Deputy Commissioner, it or he shall have a right to require the Deputy Commissioner to make a reference to the District Judge, in accordance with the provisions of section 18 of the Land Acquisition Act, 1894 (1 of 1894 ).