Landlord and Tenant Act, 1931

Fixing of terms of new tenancy by the Court.

29.—Where the Court fixes under this Act the terms of a new tenancy, whether such new tenancy is to be granted in pursuance of a provision of this Act or in pursuance of an order of the Court, the following provisions shall have effect, that is to say:—

(a) the Court shall fix the duration of such new tenancy;

(b) where the landlord holds the tenement in which such new tenancy is created under a lease, the duration of such new tenancy shall not exceed the term of such lease;

(c) subject to the next preceding paragraph of this section, the duration of such new tenancy shall not, without the consent of the tenant, be less than a term of twenty-one years and shall not in any case exceed a term of ninety-nine years;

(d) the rent payable by the tenant under such new tenancy shall not be less than (as the case may require) the rent payable by the landlord in respect of such tenement or such proportion of the rent payable by the landlord in respect of such tenement and other property as is in the opinion of the Court fairly apportionable to such tenement;

(e) subject to the foregoing paragraph of this sub-section, the said rent shall be the difference between the gross rent and the allowance for improvements as hereinafter respectively defined;

(f) the gross rent shall be the rent which in the opinion of the Court a willing lessee not already in occupation would give and a willing lessor would take for such tenement, in each case on the basis of vacant possession being given, and in such circumstances that the supply of similar tenements is sufficient to meet the demand and the competition therefor is normal and having regard to the other terms of such tenancy and to the letting values of tenements of a similar character to and situate in the vicinity of such tenement but without regard to any goodwill which may exist in respect of such tenement;

(g) the allowance in respect of improvements shall be such proportion of the gross rent as is, in the opinion of the Court, attributable to improvements made by the tenant or his predecessors in title and in respect of which the tenant would have been entitled to compensation for improvements if (as the case may be) Part III of this Act did not apply to such tenement or such new tenancy had not been created;

(h) the Court may, as one of the terms of such new tenancy, require the intended tenant to expend a specified sum of money in the execution of specified repairs (including painting for purposes of preservation but not painting for purposes of mere decoration) to such tenement and authorise the postponement of the granting of such new tenancy until such repairs have been duly completed.