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10 1980

LANDLORD AND TENANT (AMENDMENT) ACT, 1980

PART IV

Compensation

Compensation for Improvements

“Improvement”

[1931, s. 2 in pt.]

45. —For the purposes of sections 46 to 57, “improvement” in relation to a tenement means any addition to or alteration of the buildings comprised in the tenement and includes any structure erected on the tenement which is ancillary or subsidiary to those buildings and also includes the installation in the tenement of conduits for the supply of water, gas or electricity but does not include work consisting only of repairing, painting and decorating, or any of them.

Compensation for improvements.

[1931, ss. 10, 36 (1)]

46. —(1) (a) Subject to the provisions of this Act, where a tenant quits a tenement because of the termination of his tenancy, he shall be entitled to be paid by the landlord compensation (in this Act referred to as compensation for improvements) in accordance with this Act for every improvement made on the tenement by the tenant or any of his predecessors in title (whether before or after the commencement of this Act) which, at the termination of the tenancy, adds to the letting value and is suitable to the character of the tenement.

(b) Paragraph (a) does not apply where—

(i) the tenant has terminated the tenancy by notice of surrender or otherwise, or

[cf. 1931, s. 10 (1)]

(ii) the tenancy is terminated because of non-payment of rent, whether the proceedings are framed as an ejectment for non-payment of rent, an ejectment for overholding or an ejectment on the title based on a forfeiture.

(2) Subject to the provisions of this Act, where a landlord holds a tenement under a lease or other contract of tenancy, he shall be entitled, on giving up possession of the tenement because of the expiration of the lease or tenancy, to be paid by his immediate superior landlord compensation (in this Act included in the expression compensation for improvements) for every improvement which was made (whether before or after the commencement of this Act) on the tenement by a tenant thereof and in respect of which the landlord or any of his predecessors in title has given consideration whether by reduction of rent, by payment of compensation under the Town Tenants (Ireland) Act, 1906, by payment of compensation under section 10 of the Act of 1931, by payment of compensation for improvements under this Act, or in any other way.

(3) Compensation for improvements payable by a landlord under subsection (1) shall, subject to this Act, be payable on—

(a) the expiration of one month from the date of the fixing, by agreement or by the Court, of its amount, or

(b) the delivery to the landlord by the tenant of clear possession of the tenement,

whichever is the later.

Measure of compensation for improvements.

[1931, s. 11]

47. —(1) The amount of compensation for improvements shall be such sum as may be agreed on between the landlord and the tenant or, in default of agreement, shall (subject to the provisions of this section) be the capitalised value of such addition to the letting value of the tenement at the termination of the tenancy as the Court determines to be attributable to the improvements.

(2) Where compensation for improvements is payable to the tenant by the landlord and the Court is satisfied that the tenant and (where applicable) his predecessors in title or any of them has or have received from the landlord benefits by way of reduction of rent or otherwise in consideration, expressly or impliedly, of the improvements being or having been made, the Court shall deduct from the compensation as ascertained under subsection (1) such sum as the Court thinks proper for the benefits.

(3) Where compensation for improvements is payable to the landlord by his superior landlord, the Court shall make such deduction (if any) from the compensation as ascertained under subsection (1) as the Court thinks proper for benefits received by the landlord and (where applicable) his predecessors in title or any of them by way of increased rent or otherwise on account of the improvements.

(4) The capitalised value for the purposes of this section of an addition to the letting value of a tenement shall be fixed by the Court having regard to the probable duration of such addition, the probable life of the improvement and all other relevant circumstances but shall not in any case exceed fifteen times the annual amount of the addition.

Improvement notice.

[New in pt. cf. 1931, s. 12]

48. —(1) Where a tenant proposes to make an improvement to his tenement, he may serve on his landlord a notice in the prescribed form (in this Act referred to as an improvement notice) together with—

(a) in every case—

(i) a statement of the works proposed for making the improvement, and

(ii) an estimate, verified by an architect, surveyor or building contractor, of the cost of making the improvement, and

(b) if the improvement is development for which planning permission is required, a copy of the permission.

(2) Where an improvement notice is served, the landlord may, within one month, serve on the tenant any one of the following notices:

(a) a notice (in this Act referred to as an improvement consent) in the prescribed form consenting to the making of the improvement,

(b) a notice (in this Act referred to as an improvement undertaking) in the prescribed form undertaking to execute the improvement in consideration of either (as the landlord states in the notice) a specified increase of rent or an increase of rent to be fixed by the Court,

(c) subject to subsection (3), a notice (in this Act referred to as an improvement objection) in the prescribed form objecting to the improvement on grounds specified in the notice.

(3) An improvement objection may be served only where the grounds of the objection are—

(a) that the tenant holds the tenement otherwise than under a lease for a term of which at lease five years are unexpired at the time when the improvement notice is served, and

(b) that the tenant would, on any of the grounds specified in section 17 (2) (a), not be entitled under Part II to a new tenancy.

(4) Where an improvement notice is served in a case in which the landlord holds the tenement—

(a) under a lease for a life or lives in being (either without a term of years or with a concurrent term of which less than twenty-five years are unexpired), or

(b) under a lease for a term of which less than twenty-five years are unexpired at the date of the service of such notice, or

(c) under a tenancy from year to year or any lesser tenancy,

the landlord shall, within one week, serve the notice or a copy thereof on his immediate superior landlord, endorsed with a statement of the date on which the notice was served on him, and the superior landlord may, within one month after the date of the service of the improvement notice by the tenant on the landlord, serve on the landlord and on the tenant either an improvement consent or an improvement objection.

(5) Every superior landlord on whom an improvement notice or a copy thereof is served under this section (including this subsection) and who holds the tenement—

(a) under a lease of which less than twenty-five years are unexpired at the date of such service, or

(b) under a tenancy from year to year or any lesser tenancy,

shall, within one week, serve the improvement notice or a copy thereof as endorsed under subsection (4) on his next superior landlord, and that superior landlord shall have the like right of serving an improvement consent or an improvement objection as the first-mentioned superior landlord has under this section.

Works required by public authority.

[New in pt. cf. 1931, s. 13]

49. —(1) Where a sanitary authority serves under the Local Government (Sanitary Services) Acts, 1878 to 1964, or a housing authority serves under the Housing Act, 1966 , a notice on the tenant of a tenement requiring him to execute an improvement, the tenant shall, within three days, serve on the landlord a notice in writing (in this Act referred to as a work notice) stating the fact of the service of the notice by that authority and stating the material portions of that notice.

(2) Where a work notice is served, the landlord may, within three days, serve on the tenant a notice (in this Act referred to as a work undertaking) in the prescribed form undertaking to execute the work in consideration of either (as the landlord states in the notice) a specified increase of rent or an increase of rent to be fixed by the Court.

(3) In the case of works required to a controlled dwelling the increase of rent shall not exceed the allowance provided for by section 10 (2) (g) of the Rent Restrictions Act, 1960 , inserted by section 6 (2) of the Rent Restrictions (Amendment) Act, 1967 .

(4) The service of a work undertaking shall have the same effect as the service on the tenant of an improvement undertaking, and the provisions of this Act in relation to an improvement undertaking shall apply accordingly.

(5) A copy of a work undertaking may be served by the tenant on the authority and thereupon the obligation to comply with the notice served by the authority and the liability for failure to comply with it shall become the obligation and liability of the landlord in exoneration of the tenant.

(6) Where a work notice is served and, within three days, the landlord does not serve a work undertaking, the tenant shall be entitled to execute the improvement mentioned in the notice by the authority which occasioned the work notice.

Execution of improvement in absence of objection.

[New in pt. cf. 1931, s. 14]

50. —Where an improvement notice is served and, within one month, the landlord does not serve an improvement undertaking and neither the landlord nor any superior landlord serves an improvement objection, the tenant shall be entitled to execute at any time within one year after such service (whether an improvement consent has or has not been served by the landlord or superior landlord) the improvement specified in the improvement notice in accordance in all respects with the notice.

Rights of parties on service of improvement undertaking.

[New in pt. cf. 1931, s. 15]

51. —(1) Where an improvement notice is served and, within one month, the landlord serves an improvement undertaking and no superior landlord serves an improvement objection the tenant may, by notice in writing served on the landlord within fourteen days after the service of the undertaking, either accept it or withdraw the improvement notice or, where the undertaking specifies an increase of rent, object to its amount.

(2) Where the tenant does not serve a notice under subsection (1) or accepts under that subsection the improvement undertaking, the landlord shall, as soon as may be, and in any case not later than six months after the expiration of such fourteen days, execute and complete at his own expense and in accordance with the improvement undertaking the improvement mentioned therein and may for that purpose enter on the tenement at all reasonable times and there do all things necessary for or incidental to the execution of the improvement.

(3) If the tenant withdraws the improvement notice, that notice shall be deemed never to have been served.

(4) Where the tenant objects to the amount of the increase of rent specified in the improvement undertaking, then—

(a) the landlord and the tenant may either fix by agreement the amount of the increase of rent or agree that its amount shall be fixed by the Court, and thereupon the improvement undertaking shall have effect in accordance with that agreement and be deemed to have been duly accepted by the tenant, or

(b) either the landlord or the tenant may apply to the Court and, upon the hearing of the application, the Court may, as it thinks proper, either fix the amount of the increase of rent or deem the improvement undertaking to be an improvement objection and deal with it accordingly or make such other order as justice may require.

(5) Where the improvement undertaking is, by its terms or by subsequent agreement, made subject to an increase of rent of an amount to be fixed by the Court, the landlord or the tenant may, when the improvement has been duly executed by the landlord, apply to the Court to fix the amount of the increase of rent.

(6) Upon the completion of the improvement by the landlord in accordance with the improvement undertaking and this section, the rent payable by the tenant to the landlord shall, from the date of completion, be increased in accordance with the undertaking or the order of the Court (as the case may be), and any dispute as to the amount or commencement of or otherwise in relation to the increase shall be determined by the Court on the application of the landlord or the tenant.

(7) Where the landlord is bound under this section to execute the improvement in accordance with the improvement undertaking but refuses or fails to execute and complete it within the time limited in that behalf by this section, the tenant may apply to the Court and the Court may make such order in the matter as justice may require.

Rights of parties on service of improvement objection.

[New in pt. cf. 1931, s. 16]

52. —(1) Where an improvement notice is served and, within one month, either the landlord or a superior landlord serves an improvement objection, the tenant may, save as is otherwise provided in this section, within one month after the service of the improvement objection, either—

(a) by notice in writing served on the landlord or on the landlord and the superior landlord (as the case may require) withdraw the improvement notice, or

(b) apply to the Court under this section.

(2) Where a tenant so withdraws an improvement notice, the notice shall be deemed never to have been served.

(3) On an application under this section the Court shall, subject to subsection (4), make an order (in this Act referred to as an improvement order) authorising the tenant to make the improvement in accordance with the improvement notice either without modification or with such modifications as the Court thinks proper and, if the Court so thinks fit, specifying a time within which the improvement shall be completed.

(4) The Court shall reject the application if it is satisfied that the tenant holds the tenement otherwise than under a lease for a term of which at least five years were unexpired at the time when the improvement notice was served and would, on any of the grounds specified in section 17 (2) (a), not be entitled under Part II to a new tenancy.

(5) Where an improvement order has been made and the tenant refuses or fails to execute and complete in accordance with the order the improvement thereby authorised within the time limited in that behalf by the order or, where no such time is so limited, within a reasonable time, the landlord or any superior landlord may apply to the Court and, on the hearing of the application, the Court may make such order as justice may require.

Restriction on increase of rent of controlled dwellings.

[New]

53. —Nothing in this Part shall authorise the charging, in the case of a controlled dwelling, of a rent exceeding the lawful rent of the dwelling as defined by section 11 of the Rent Restrictions Act, 1960 .

Restrictions on right to compensation for improvements.

[New in pt. cf. 1931, s. 17]

54. —(1) A tenant shall not be entitled to compensation for improvements in respect of an improvement made before the passing of the Act of 1931 in contravention of the lease or other contract of tenancy under which the tenement was held.

(2) A tenant shall not be entitled to compensation for improvements in respect of an improvement made after the passing of the Act of 1931 (whether before or after the commencement of this Act) unless a notice under section 12 (1) of the Act of 1931 or an improvement notice was served or, where no such notice was served, if the landlord, or where appropriate, a superior landlord, satisfies the Court that—

(a) he has been prejudiced by the notice not having been served, or

(b) the improvement is in contravention of any covenant contained in the contract of tenancy, or

(c) the improvement injures the amenity or convenience of the neighbourhood.

(3) A landlord shall not be entitled to compensation for improvements in respect of an improvement made after the passing of the Act of 1931 (whether before or after the commencement of this Act) in respect of which a notice under section 12 (1) of the Act of 1931 or an improvement notice was served unless the notice or a copy thereof was served under section 12 (3) of the Act of 1931 or under section 48 (4) of this Act or, where no such notice was served, if the superior landlord satisfies the Court that—

(a) he has been prejudiced by such service not having been effected, or

(b) the improvement is a contravention of any covenant in the contract of tenancy under which the landlord holds the tenement, or

(c) the improvement injures the amenity or convenience of the neighbourhood.

(4) Neither subsection (2) nor (3) applies to an improvement which is—

(a) a work in relation to which section 17 (5) of the Act of 1931 applied, or

(b) any other work executed in pursuance of an order of a sanitary authority under the Local Government (Sanitary Services) Acts, 1878 to 1964, or of a housing authority under the Housing Act, 1966 ,

but the tenant shall not be entitled to compensation in respect of such work unless—

(i) in the case of a work specified in paragraph (a), the tenant served on the landlord a notice under section 13 (1) of the Act of 1931 and became entitled under that Act to execute the work as an improvement, or

(ii) in the case of a work specified in paragraph (b), the tenant served on the landlord a work notice in respect of the work and became entitled under this Act to execute the work as an improvement:

Provided that the failure to serve notice shall not deprive the tenant of his right (if any) to compensation in respect of the work if the tenant satisfies the Court that the landlord did not suffer loss or damage by reason of the failure.

Improvement certificate.

[1931, s. 18]

55. —(1) Where—

(a) in a case in which an improvement notice is served but no improvement undertaking or improvement objection is served, the tenant executes and completes in accordance with the notice the improvement mentioned therein within one year from the service of the notice, or

(b) in a case in which an improvement order is made, the tenant completes the improvement within the time limited in that behalf by the order or, where no such time is so limited, within a reasonable time,

the landlord shall, on the application of the tenant within six months after the completion of the improvement, give to the tenant a certificate (in this section referred to as an improvement certificate) in the prescribed form certifying that the improvement has been duly completed in accordance with the improvement notice or order.

(2) Where an improvement certificate is applied for under subsection (1) and is not given within one month thereafter, the tenant may apply to the Court and, on the hearing of that application, the Court may make such order as justice may require, including an order declaring that the improvement was duly made in accordance with the improvement notice or order.

(3) An improvement certificate shall, as against the landlord by whom it is given, his personal representatives and his successors in title, be conclusive evidence that the improvement was duly executed and completed by the tenant and that all relevant provisions of this Act or any order or notice thereunder were duly complied with by him.

(4) Where, in a case in which work executed on a tenement is an improvement, the work is executed by the tenant in pursuance of an order of a sanitary authority under the Local Government (Sanitary Services) Acts, 1878 to 1964, or a housing authority under the Housing Act, 1966 , the tenant shall not be entitled to an improvement certificate but shall be entitled to obtain from the authority, within six months after the due completion of the work in accordance with the order, a certificate (in this section referred to as a sanitary improvement certificate) in the prescribed form certifying that the work was executed in pursuance of and completed in accordance with an order of the authority.

(5) A sanitary improvement certificate shall, as against the landlord of the tenement, be prima facie evidence of the matters which it purports to certify.

(6) A landlord or authority to whom an application for an improvement certificate or sanitary improvement certificate (as the case may be) is made may, as a condition of giving the certificate, require payment of his or their reasonable expenses of giving the certificate.

Claim for improvements.

[1931, ss. 24, 25 in pt.]

56. —(1) A claim for relief limited to a claim for compensation for improvements shall not be maintained unless, within the time limited under section 20 (2), a notice of intention to claim relief in the prescribed form is served on the person against whom the claim is intended to be made.

(2) Section 21 shall apply accordingly.

Compensation for improvements a first charge.

[1931, s. 36 (4)]

57. —Compensation for improvements payable to a tenant shall be a first charge (in priority to all other mortgages, charges and incumbrances whatsoever) on the interest of the landlord or superior landlord (as the case may be) in the tenement.

Compensation for Disturbance

Compensation where tenant not entitled to new tenancy.

[1931, ss. 22 in pt., 23, 36 (1); 1967, No. 10, s. 13 (3) (vii)]

58. —(1) Where the Court is satisfied—

(a) that a tenant would, but for section 17 (2), be entitled to a new tenancy under Part II, and

(b) that section 13 (1) (a) applies to the tenement,

the tenant shall, in lieu of a new tenancy, be entitled, on quitting the tenement on the termination of the tenancy, to be paid by the landlord compensation for disturbance.

(2) Subject to subsection (3), the measure of the compensation shall be the pecuniary loss, damage or expense which the tenant sustains or incurs or will sustain or incur by reason of his quitting the tenement and which is the direct consequence of that quitting.

(3) In the case of a dwelling to which section 15 applies, the measure of the compensation shall be whichever of the following is the greater, namely, the amount provided for by subsection (2) or such sum as the Court thinks proper to enable the tenant without hardship to secure appropriate alternative accommodation, being not less than three years' rent, including rates, whether or not payable by the tenant.

(4) Compensation shall, subject to section 61, be payable on—

(a) the expiration of one month from the date of the fixing, by agreement or by the Court, of its amount, or

(b) the delivery to the landlord by the tenant of clear possession of the tenement,

whichever is the later.

(5) Where compensation awarded under this section is not paid within the time limited by this Act, the tenant shall be entitled, after the expiration of that time and before the payment of the compensation, to renew his application for a new tenancy under Part II, and section 17 (2) (a) and 17 (3) shall not apply to that application and the granting of the application shall operate as a discharge of the award of compensation for disturbance.

Compensation where lessee not entitled to new lease.

[1958, s. 16 (1)-(4), (6), (7)]

59. —(1) Where the Court is satisfied that a person (in this section referred to as the disentitled person) would, but for section 33 (1), 33 (2) or 33 (3) be entitled to a lease under Part III, compensation in lieu of the lease shall be paid in accordance with this section.

(2) The compensation shall be paid by the successful objector or if there is more than one successful objector by them in such proportions as the Court may determine.

(3) The measure of compensation under this section shall be the pecuniary loss, damage or expense which will, in the opinion of the Court, be suffered by the disentitled person as a direct consequence of the disentitled person having been declared not to be entitled to a lease.

(4) The compensation payable to a disentitled person shall become due and payable on the occurrence of whichever of the following events is the later, that is to say, the expiration of one month after the amount of the compensation is fixed or the date on which the disentitled person's lease terminates either by effluxion of time or by agreement between the parties to it.

(5) Where the compensation awarded under this section is not paid within the time specified in subsection (4) or within such extended time as the Court may allow, the following provisions shall have effect:

(a) any disentitled person shall thereupon become entitled to obtain from his immediate lessor a lease under Part III of the relevant land,

(b) the provisions of sections 31 (1) and 33 shall not apply,

(c) the granting of the lease shall operate as a discharge of the award of compensation, and

(d) the Court may make an order for the payment by the successful objector of such other compensation as it considers proper for the pecuniary loss, damage or expense which the disentitled person has suffered as a direct consequence of the declaration of disentitlement to a lease.

(6) In this section “successful objector” shall, where the context so admits, be construed as including the personal representatives and successors in title of the objector.

Compensation on termination of tenancy in obsolete buildings.

[New]

60. —(1) In this section—

the relevant building” means—

(a) in relation to a tenement consisting of land covered wholly or partly by buildings—those buildings, and

(b) in relation to a tenement consisting of a defined portion of a building—that building;

obsolete area” has the meaning assigned to it by the Local Government (Planning and Development) Act, 1963 .

(2) Where, in the case of a tenement—

(a) either the relevant building is situate in an obsolete area or, having regard to the age, condition and character of the building—

(i) the repairing of the building would involve expenditure which would be excessive in relation to the value of the tenement, or

(ii) the building could not profitably be used unless it were reconstructed or altered to a substantial extent or rebuilt, and

(b) the landlord has a scheme for the development of property which includes the tenement, being development for which planning permission has been granted,

the Court may, by order made on the application of the landlord on at least six months' notice in the prescribed form to the tenant, terminate the tenancy if it considers it reasonable to do so:

Provided that the lease or other contract of tenancy under which the tenant, at the time the notice is served on him, holds the tenement is for a term of which not less than three and not more than twenty-five years are unexpired.

(3) Where a tenancy is terminated under this section the tenant shall be entitled, on quitting the tenement, to be paid by the landlord compensation for the termination of the tenancy in accordance with this section.

(4) Where a tenancy is terminated under this section, the tenant may continue in occupation until the expiration of the period beginning on the day on which the order of the Court is made and ending on the expiration of one year from that day or on the day on which compensation for the termination of the tenancy is paid (whichever is the later) and, so long as he does so, he shall be subject to the terms (including payment of rent) of the tenancy.

(5) Where the Court awards compensation for the termination of a tenancy under this section, the measure of the compensation shall primarily be the pecuniary loss, damage or expense which the tenant sustains or incurs or will sustain or incur by reason of his quitting the tenement and which is the direct consequence of such quitting, but

(a) such amount as the Court considers reasonable shall be added for the pecuniary benefit accruing to the landlord which is referable to his getting possession of the tenement earlier than he was entitled to under the lease or other contract of tenancy, and

(b) such amount as the Court considers reasonable shall be added for any further hardship which the tenant sustains through the making of the order terminating the tenancy.

(6) This section does not apply where the tenant of the tenement is entitled to a reversionary lease of the tenement or would be so entitled but for section 33.

Consequential Provisions

Set-off of compensation against rent, etc.

[1931, s. 36(2), (3)]

61. —(1) Where compensation under this Part is payable by one person to another and money is due and owing to him by the latter under or in respect of the latter's lease or other interest in the premises, either person may set off, so far as may be, the one amount against the other.

(2) Where compensation under this Part is payable by one person to another and he claims that money is payable to him by the latter under or in respect of the latter's lease or other interest in the premises and the claim or the amount thereof is disputed or the amount of the claim is unliquidated, he may pay the amount of the compensation into Court, and thereupon the Court may, on the application of either party, make such order in relation to the amount paid into Court as justice may require and, in particular, may retain that amount or any part thereof until the validity of the claim or the amount thereof has been determined.

Payment of compensation where interest is mortgaged.

[1931, s. 37; 1958, s. 16 (5)]

62. —(1) Where compensation under this Part is payable and the interest in the premises of the person to whom the compensation is payable is subject to a mortgage or charge, the mortgage or charge shall extend and attach to the compensation.

(2) Where a person by whom the compensation is payable has actual notice of a mortgage or charge which by virtue of this section or otherwise affects the compensation, he shall either—

(a) with the consent of the person to whom the compensation is due, pay the compensation to the owner of the mortgage or charge, or

(b) with the consent of that owner, pay the compensation to the person to whom it is due, or

(c) where the owner and that person direct that the compensation shall be paid in a particular manner, pay it in that manner, or

(d) where no such consent or direction is given, pay the compensation into Court.

(3) Where the compensation is paid into Court the Court may, on the application of any person interested, make such order in regard to it as justice may require.

Protection of trustees, etc.

[1931, s. 44]

63. —(1) Where a person (in this section referred to as a trustee) is entitled to receive the rents and profits of premises as trustee or in any character otherwise than for his own benefit and money is due by the trustee for compensation under this Part or for costs, charges or expenses in relation to a claim for that compensation—

(a) the money shall not be recoverable personally against the trustee nor shall he be under any liability to pay it, but it shall be a charge on and recoverable only against the premises and all property, real or personal, held by the trustee on the same trusts or in the same character as the premises;

(b) the trustee shall, either before or after having paid the money, be entitled to obtain from the Court a charge on the premises and all property, real or personal, held by him on the same trusts or in the same character as the premises to the amount of the money and of all costs properly incurred by him in obtaining the charge or raising the amount thereof;

(c) if the trustee refuses or fails to pay the money within one month after the person to whom it is due has quitted the premises, that person shall be entitled to obtain from the Court a charge on the premises and all property, real or personal, held by the trustee on the same trusts or in the same character as the premises to the amount of the money or of so much thereof as is then unpaid and of all costs properly incurred by him in obtaining the charge or in raising the amount thereof.

(2) Any company incorporated by statute and having power to advance money for the improvement of land may take an assignment of any charge made by the Court under this section, and such company may assign any charge so assigned to them to any person or persons whatsoever.