(1)Where—
(a)a notice under section 110 is given to the Secretary of State in consequence of the making of an order under section 97 revoking or modifying planning permission or, in a case falling within section 108, of a relevant planning decision refusing planning permission or granting it conditionally, and
(b)if that permission had been refused, or, as the case may be, had been granted as so modified or subject to those conditions, at the time when it was granted, compensation under Part V could have been claimed and would have been payable by the Secretary of State,
the Secretary of State may pay to the local planning authority a contribution of the amount appearing to him to be the amount of compensation which would have been so payable by him under Part V.
(2)The amount of any such contribution shall not exceed—
(a)the amount of the compensation for depreciation paid by the local planning authority; or
(b)the unexpended balance of established development value of the land in respect of which that compensation was paid at the date of the making of the order or, in a case falling within section 108, of the relevant planning decision.
(3)Regulations made under this section shall make provision, in relation to cases where the Secretary of State proposes to pay a contribution under this section—
(a)for requiring the Secretary of State to give notice of his proposal—
(i)to persons entitled to such interests in the land to which the proposal relates as may be prescribed, and
(ii)to such other persons (if any) as may be determined in accordance with the regulations to be affected by the proposal;
(b)for enabling persons to whom notice of the proposal is given to object to the proposal on the grounds—
(i)that compensation would not have been payable as mentioned in subsection (1), or
(ii)that the amount of the compensation so payable would have been less than the amount of the proposed contribution;
(c)for enabling any person making such an objection to require the matter in dispute to be referred to the Lands Tribunal for determination; and
(d)where a contribution under this section is paid, for applying (with any necessary modifications) the provisions of Part V as to the reduction or extinguishment of the unexpended balance of established development value of land as if the contribution had been a payment of compensation under that Part.