Compensation to tenant, on termination of tenancy, for improvements begun before 1st November, 1948

40 Compensation for certain old improvements conditional on notice to landlord.

1

Compensation under this Act shall not be payable for a 1923 Act improvement specified in Part 11 of the Second Schedule to this Act unless the tenant, not more than three nor less than two months before he began to carry out the improvement, gave to the landlord notice in writing under section three of the Agricultural Holdings (Scotland) Act, 1923, of his intention to carry out the improvement and of the manner in which he proposed to carry it out, and either—

a

the landlord and the tenant agreed on the terms as to compensation or otherwise on which the improvement was to be carried out; or

b

where no such agreement was made and the tenant did not withdraw the notice, the landlord failed to exercise the right conferred on him by that section to carry out the improvement himself within a reasonable time:

Provided that this subsection shall not have effect if the landlord and the tenant agreed, by the lease or otherwise, to dispense with notice under the said section three.

2

Compensation under this Act shall not be payable for a 1931 Act improvement specified in Part 11 of the Third Schedule to this Act unless the tenant, not more than six months nor less than three months before he began to carry out the improvement, gave to the landlord notice in writing under section three of the Agricultural Holdings (Scotland) Act, 1923, of his intention to carry out the improvement and of the manner in which he proposed to carry it out and either—

a

the landlord and the tenant agreed on the terms as to compensation or otherwise on which the improvement was to be carried out; or

b

where no such agreement was made and the tenant did not withdraw the notice, the landlord failed to exercise the right conferred on him by that section to carry out the improvement himself within a reasonable time; or

c

in a case where the landlord gave notice of objection and the matter was, in pursuance of subsection (2) of section twenty-eight of the M1 Small Landholders and Agricultural Holdings (Scotland) Act, 1931, referred for determination to the appropriate authority, that authority was satisfied that the improvement ought to be carried out and the improvement was carried out in accordance with the directions (if any) given by that authority as to the manner in which the improvement was to be carried out:

Provided that this subsection shall not have effect—

i

if the landlord and the tenant agreed, by the lease or otherwise, to dispense with notice under the said section three; or

ii

where the improvement consists of drainage which was carried out by the tenant for the purpose of complying with directions given under Defence Regulations, but which he was not required to carry out by the terms of the tenancy.

3

If the landlord and the tenant agreed (whether after notice was given under the said section three or by an agreement to dispense with notice under that section) on the terms as to compensation on which the improvement was to be carried out, the compensation payable under the agreement shall be substituted for compensation under this Act.

4

In this section the expression “the appropriate authority” means, in relation to the period before the fourth day of September, nineteen hundred and thirty-nine, the Department of Agriculture for Scotland, and in relation to the period commencing on that day, the Secretary of State.