Landlord and Tenant Act, 1931

Compensation for disturbance in certain cases.

22.—(1) Where it appears to the Court either—

(a) that the landlord of a tenement to which this Part of this Act applies bona-fide intends or has agreed to pull down and rebuild or to reconstruct the buildings or any part of the buildings included in such tenement, or

(b) that such landlord requires vacant possession of such tenement for the purpose of carrying out a scheme of development of property which includes such tenement, or

(c) that for any reason the creation of a new tenancy in such tenement would not be consistent with good estate management,

the tenant of such tenement shall not be entitled under this Part of this Act to a new tenancy in such tenement.

(2) Where an application for a new tenancy under this Part of this Act is refused on one of the grounds mentioned in paragraph (a) or paragraph (b) of sub-section (1) of this section and the landlord of the tenement to which such application relates does not, within a reasonable time, carry out the intention, agreement, or purpose (as the case may be) on account of which such application was refused, such landlord shall be guilty of contempt of Court and be punishable accordingly.

(3) Where the Court is satisfied—

(a) that the tenant of a tenement to which this Part of this Act applies would, but for this section, be entitled under this Part of this Act to a new tenancy in such tenement, and

(b) that, during the whole of a period of three years expiring at or within three months before the termination of his tenancy in such tenement, such tenement was used by the tenant for the time being thereof wholly or partly for the purpose of carrying on therein a business,

such tenant shall, in lieu of a new tenancy under this Part of this Act, be entitled, on quitting such tenement on the expiration of such tenancy, to be paid by the landlord of such tenement compensation (in this Act referred to as compensation for disturbance) in accordance with this Act.

(4) Where compensation for disturbance is awarded under this section to the tenant of a tenement and such compensation is not paid within the time limited in that behalf by this Act, such tenant shall be entitled, after the expiration of the said time so limited and before the payment of such compensation, to renew his application for a new tenancy under this Part of this Act in such tenement, and the foregoing sub-sections of this section shall not apply in respect of such application and the granting of such application shall operate as a discharge of the said award of compensation for disturbance.

(5) Where the Court is satisfied—

(a) that the tenant of a tenement to which this Part of this Act applies would but for paragraph (a) or paragraph (b) of sub-section (1) of this section be entitled under this Part of this Act to a new tenancy in such tenement, and

(b) that the landlord will not require possession of such tenement for the purposes mentioned in the said paragraph (a) or the said paragraph (b) (as the case may be) until after the expiration of a period of at least six months,

the Court shall, if such tenant so requests, continue the existing tenancy of such tenant in such tenement until such tenancy is terminated by such landlord for the purposes aforesaid by the service of six months previous notice in writing, but subject to the condition that such continuation of such tenancy shall be without prejudice to the right of such tenant to relief under this Act on such termination of such continued tenancy.