Landlord and Tenant Act, 1931

Offer by landlord of new tenancy in lieu of compensation.

28.—(1) Where a tenant has served on his landlord a notice of intention to claim relief which is limited to relief by way of compensation for improvements and such landlord has either a fee simple reversion or a reversion of more than five years in the tenement to which such notice relates, such landlord may, within two months after the service of such notice on him, serve on such tenant a notice in the prescribed form offering to such tenant either (as such landlord shall think proper to specify in such notice) a new tenancy in such tenement on terms specified in such notice or a new tenancy in such tenement on terms to be fixed by the Court.

(2) Where a landlord serves on his tenant a notice under the foregoing sub-section of this section offering to such tenant a new tenancy on terms specified in such notice, the following provisions shall have effect, that is to say:—

(a) the tenant may, within one month after the service of such notice, serve on such landlord a notice in the prescribed form accepting such new tenancy;

(b) if the tenant serves a notice under the foregoing paragraph of this sub-section, such landlord shall forthwith grant and such tenant shall forthwith accept a lease or other written contract of tenancy creating in the tenement to which such notices relate and as from the expiration of the previous tenancy a new tenancy on the terms specified in the notice served by such landlord;

(c) the tenant may, in lieu of serving the notice hereinbefore mentioned serve on the landlord a notice refusing such new tenancy;

(d) if the tenant serves a notice under the foregoing paragraph of this sub-section, the tenant may proceed with his application for relief by way of compensation for improvements, but on the hearing of such application the Court may, if it thinks fit and is satisfied that the tenant is entitled to such relief, in lieu of awarding such relief make an order requiring the landlord to grant and the tenant to accept a new tenancy in such tenement on such terms as the Court shall (subject to the provisions of this Act) think proper and shall specify in such order.

(3) Where a landlord serves on his tenant a notice under the first sub-section of this section offering to such tenant a new tenancy on terms to be fixed by the Court, the following provisions shall have effect, that is to say:—

(a) either the landlord or the tenant may apply to the Court for an order fixing the terms of such tenancy;

(b) upon the Court making such order, such landlord shall forthwith grant and such tenant shall forthwith accept a lease or other written contract of tenancy creating in the tenement to which such notices relate a new tenancy on the terms specified in such order.

(4) Where a landlord and a tenant are required, by this section or an order made under this section, respectively to grant and accept a new tenancy in a tenement, such tenant shall not be entitled to compensation under this Act in respect of the termination of the previous tenancy in such tenement, without prejudice however to his right to claim compensation under this Act on the termination of the new tenancy.

(5) Where a landlord and a tenant are required, by this section or an order made under this section, respectively to grant and accept a new tenancy in a tenement and any dispute, failure, or question arises or occurs in the granting and accepting of such new tenancy, any party concerned may apply to the Court and thereupon the Court may make such order as justice may require.