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Time for payment of compensation.
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36.—(1) Where a tenant is entitled to receive from his landlord compensation under this Act, such compensation shall, subject to the provisions of this section, be payable on the occurrence of whichever of the following events is the later, that is to say:—
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(a) the expiration of one month from the date of the fixing, by agreement or the Court, of the amount of such compensation, and
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(b) the delivery to the landlord by the tenant of clear possession of the tenement.
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(2) Where compensation under this Act is payable by a landlord to his tenant and money is due and owing by such tenant to such landlord under or in respect of his tenancy in the tenement in relation to which such compensation is so payable, the following provisions shall have effect, that is to say:—
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(a) such landlord may, where such compensation exceeds such money, deduct such money from such compensation or, where such money is equal to or exceeds such compensation, retain such compensation in payment and discharge of such money or of so much thereof as is equal to such compensation;
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(b) such tenant may, where such money exceeds such compensation, deduct such compensation from such money or, where such compensation is equal to or exceeds such money, retain such money in payment and discharge of such compensation or of so much thereof as is equal to such money.
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(3) Where compensation under this Act is payable by a landlord to a tenant and such landlord claims that money is payable to him by such tenant under or in respect of his tenancy in the tenement in relation to which such compensation is so payable and such claim or the amount thereof is disputed by the tenant or the amount of such claim is unliquidated, such landlord may pay the amount of such compensation into the Court and thereupon the Court may, on the application of either the landlord or the tenant, make such order in relation to the money so paid into the Court as justice may require and, in particular, may retain such money or any part thereof until the validity of such claim or the amount of such claim has been determined.
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(4) Compensation for improvements payable by a landlord or a superior landlord to a tenant shall be a first charge (in priority to all other mortgages, charges, and incumbrances whatsoever) on the interest of such landlord or superior landlord (as the case may be) in the tenement in respect of which such compensation is payable.
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