Agricultural Holdings (Scotland) Act 1949 (repealed 25.9.1991)

Title and introductory text

Agricultural Holdings (Scotland) Act 1949 (repealed 25.9.1991) 1949 c. 75 An Act to consolidate the Agricultural Holdings (Scotland) Act, 1923, Part 11 of the Small Landholders and Agricultural Holdings (Scotland) Act, 1931, Part I of the Agriculture (Scotland) Act, 1948, and certain other enactments relating to agricultural holdings, save, with respect to rights to compensation, in their application to certain cases determined by past events. [24th November 1949]

1 Meaning of “agricultural holding.”

(1) In this Act the expression “agricultural holding” means the aggregate of the agricultural land comprised in a lease, not being a lease under which the said land is let to the tenant during his continuance in any office, appointment or employment held under the landlord. (2) For the purposes of this and the next following section, the expression “agricultural land” means land used for agriculture which is so used for the purposes of a trade or business, and includes any other land which, by virtue of a designation of the Secretary of State under subsection (1) of section eighty-six of the Agriculture (Scotland) Act, 1948, is agricultural land within the meaning of that Act.

2 Restriction on letting agricultural land for less than from year to year.

(1) Subject to the provisions of this section, where under a lease entered into on or after the first day of November, nineteen hundred and forty-eight, any land is let to a person for use as agricultural land for a shorter period than from year to year, and the circumstances are such that if he were a tenant from year to year he would in respect of that land be the tenant of an agricultural holding, then, unless the letting was approved by the Secretary of State before the lease was entered into, the lease shall take effect, with the necessary modifications, as if it were a lease of the land from year to year: Provided that this subsection shall not have effect in relation to a lease of land entered into (whether or not the lease expressly so provides) in contemplation of the use of the land only for grazing or mowing during some specified period of the year, or in relation to a lease of land granted by a person whose interest in the land is that of a tenant under a lease which is for a shorter period than from year to year and which has not by virtue of this section taken effect as a lease from year to year. (2) Any question arising as to the operation of the foregoing subsection in relation to any lease shall be determined by arbitration.

3 Tacit relocation.

(1) The tenancy of an agricultural holding shall, instead of coming to an end on the termination of the stipulated endurance of any lease, be held to be continued in force by tacit relocation for another year and thereafter from year to year, unless such notice to terminate the tenancy as is mentioned in section twenty-four of this Act has been given by either party to the other. (2) The provisions of the foregoing subsection shall have effect notwithstanding any agreement or any provision in the lease to the contrary.

4 Provisions for securing written leases and for the revision of certain leases.

(1) Where in respect of the tenancy of an agricultural holding— (a) there is not in force a lease in writing embodying the terms of the tenancy, or (b) there is in force such a lease, being either— (i) a lease entered into on or after the first day of November, ninteen hundred and forty-eight, or (ii) a lease entered into before that date, the stipulated period of which has expired and which is being continued in force by tacit relocation, and such lease contains no provision for one or more of the matters specified in the Fifth Schedule to this Act or contains a provision inconsistent with that Schedule or with the next following section, the landlord or the tenant may give notice in writing to his tenant or his landlord requesting him to enter into such a lease containing provision for all of the said matters or a provision not inconsistent with the said Schedule or the said section, as the case may be; and if within the period of six months after the giving of such notice no such lease has been concluded, the terms of the tenancy shall be referred to arbitration. (2) On any such reference the arbiter shall by his award specify the terms of the existing tenancy, and, in so far as those terms make no provision for all the matters specified in the Fifth Schedule to this Act or make provision inconsistent with that Schedule or with the next following section, make such provision for those matters as appears to the arbiter to be reasonable. (3) On any such reference the arbiter may include in his award any further provisions not inconsistent with the provisions of this Act relating to the tenancy which may be agreed between the landlord and the tenant.

5 Respective liabilities of landlord and tenant for provision and maintenance of fixed equipment and for payment of insurance premiums.

(1) Where a lease has been entered into for the letting of an agricultural holding, a record of the condition of the fixed equipment on the holding shall be made forthwith, and on being so made shall be deemed to form part of the lease; and the provisions of section seventeen of this Act shall apply to the making of such a record and to the cost thereof as they apply to a record made under that section. (2) There shall be deemed to be incorporated in every lease for the letting of an agricultural holding— (a) an undertaking by the landlord that, at the commencement of the tenancy or as soon as is reasonably possible thereafter, he will put the fixed equipment on the holding into a thorough state of repair, and will provide such buildings and other fixed equipment as will enable an occupier reasonably skilled in husbandry to maintain efficient production as respects both the kind of produce specified in the lease, or (failing such specification) in use to be produced on the holding, and the quality and quantity thereof, and will during the tenancy effect such replacement or renewal of the buildings or other fixed equipment as may be rendered necessary by natural decay or by fair wear and tear; and (b) a provision that the liability of the tenant in relation to the maintenance of fixed equipment shall extend only to a liability to maintain the fixed equipment on the holding in as good a state of repair (natural decay and fair wear and tear excepted) as it was in immediately after it was put in repair as aforesaid or, in the case of equipment provided, improved, replaced or renewed during the tenancy, as it was in immediately after it was so provided, improved, replaced or renewed. (3) Nothing in the last foregoing subsection shall be deemed to prohibit any agreement made after the lease has been entered into between the landlord and the tenant whereby one of the parties undertakes to execute on behalf of the other party, and wholly at his own expense or wholly or partly at the expense of the other party, any work which the other party is required to execute in order to fulfil his obligations under the lease. (4) Any provision in a lease requiring the tenant to pay the whole or any part of the premium due under a fire insurance policy over any fixed equipment on the holding shall be null and void. (5) Any question arising as to the liability of a landlord or of a tenant under this section shall be determined by arbitration. (6) This section shall not apply to any lease entered into before the first day of November, nineteen hundred and forty-eight.

6 Provisions supplementary to s. 4 and s. 5.

(1) Where by virtue of section four of this Act the liability for the maintenance or repair of any item of fixed equipment is transferred from the tenant to the landlord, the landlord may within the prescribed period beginning with the date on which the transfer takes effect require that there shall be determined by arbitration, and paid by the tenant, the amount of any compensation which would have been payable under section fifty-seven of this Act or in accordance with subsection (3) of that section, in respect of any previous failure by the tenant to discharge the said liability, if the tenant had quitted the holding on the termination of his tenancy at the date on which the transfer takes effect. (2) Where by virtue of section four of this Act the liability for the maintenance or repair of any item of fixed equipment is transferred from the landlord to the tenant, any claim by the tenant in respect of any previous failure by the landlord to discharge the said liability shall, if the tenant within the prescribed period beginning with the date on which the transfer takes effect so requires, be determined by arbitration, and any amount directed by the award to be paid by the landlord shall be paid by him to the tenant. (3) Where it appears to the arbiter— (a) on any reference under section four of this Act that, by reason of any provision which he is required by that section to include in his award, or (b) on any reference under subsection (5) of section five of this Act that, by reason of any provision included in his award, it is equitable that the rent of the holding should be varied, he may vary the rent accordingly. (4) The award of an arbiter under section four or five of this Act shall have effect as if the terms and provisions specified and made therein were contained in an agreement in writing entered into by the landlord and the tenant and having effect as from the making of the award or, if the award so provides, from such later date as may be specified therein.

7 Variation of rent.

(1) Subject to the provisions of this section the landlord or the tenant of an agricultural holding may, whether the tenancy was created before or after the commencement of this Act, by notice in writing served on his tenant or his landlord demand a reference to arbitration of the question what rent should be payable in respect of the holding as from the next ensuing day on which the tenancy could have been terminated by notice to quit given at the date of demanding the reference, and the matter shall be referred accordingly. For the purposes of this subsection the rent properly payable in respect of a holding shall normally be the rent at which, having regard to the terms of the tenancy (other than those relating to rent), the holding might reasonably be expected to be let in the open market by a willing landlord to a willing tenant, there being disregarded (in addition to the matters referred to in subsection (2) below,) any effect on rent of the fact that the tenant who is a party to the arbitration is in occupation of the holding. (1A) Where the evidence available to the arbiter is in his opinion insufficient to enable him to determine the rent properly payable or he is of the view that the open market for rents for comparable subjects in the surrounding area is distorted by scarcity of lets or by other factors, the rent properly payable for the purposes of subsection (1) of this section shall be the rent which he would expect to be paid, in a market which was not affected by such distortion, having particular regard to the following— (i) information about open market rents of comparable subjects outside the surrounding area; (ii) the entire range of offers made as regards any lease of subjects which are comparable after regard is had to the terms of that lease; (iii) sitting tenants’ rents fixed by agreement for subjects in the surrounding area which are comparable after regard is had to any element attributable to goodwill between landlord and tenant or to similar considerations; and (iv) the current economic conditions in the relevant sector of agriculture. (2) On any reference under subsection (1) of this section the arbiter— (a) shall not take into account any increase in the rental value of the holding which is due to improvements which have been executed thereon in so far as they were executed wholly or partly at the expense of the tenant (whether or not that expense has been or will be reimbursed by a grant out of moneys provided by Parliament) without any equivalent allowance or benefit made or given by the landlord in consideration of their execution, and have not been executed under an obligation imposed on the tenant by the terms of his lease, or to improvements which have been executed thereon by the landlord in so far as the landlord has received or will receive grants out of moneys provided by Parliament in respect of the execution thereof, or fix the rent at a higher amount than would have been properly payable if these improvements had not been so executed; (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) shall not fix the rent at a lower amount by reason of any dilapidation or deterioration of, or damage to, fixed equipment or land caused or permitted by the tenant. Subject as aforesaid, the arbiter shall determine what rent should properly be payable in respect of the holding as from the day mentioned in subsection (1) of this section. (3) A reference to arbitration under subsection (1) of this section shall not be demanded in such circumstances that any increase or reduction of rent made in consequence thereof would take effect as from a date earlier than the expiration of three years from the latest in time of the following dates, that is to say— (a) the commencement of the tenancy, or (b) the date as from which there took effect a previous increase or reduction of rent (whether made under this section or otherwise), or (c) the date as from which there took effect a previous direction under this section that the rent should continue unchanged: Provided that there shall be disregarded for the purposes of this subsection— (i) an increase or reduction of rent under subsection (3) of the last foregoing section; (ii) an increase of rent under subsection (1) of the next following section or such an increase as is referred to in subsection (2) of that section; (iii) a reduction of rent under section thirty-four of this Act . . . (4) The continuous adoption by the tenant of a standard of farming or a system of farming more beneficial to the holding than the standard or system required by the lease or, in so far as no system of farming is so required, than the system of farming normally practised on comparable holdings in the district, shall be deemed, for the purposes of subsection (2) of this section, to be an improvement executed at his expense.

8 Increases of rent in respect of certain improvements carried out by landlord.

(1) Where the landlord of an agricultural holding has, whether before or after the commencement of this Act, carried out on the holding an improvement (whether or not one for the carrying out of which compensation is provided under the following provisions of this Act) being either an improvement carried out— (a) at the request of, or in agreement with, the tenant; or (b) in pursuance of an undertaking given by the landlord under subsection (3) or paragraph (b) of subsection (6) of section three of the Agricultural Holdings (Scotland) Act, 1923, or under subsection (3) of section fifty-two of this Act; or (c) in compliance with a direction given by the Secretary of State under powers conferred on him by or under any enactment; or (d) in accordance with a provision in that behalf included in a hill farming land improvement scheme approved under the Hill Farming Act, 1946, being a provision so included at the instance or with the consent of the tenant; or works for the supply of water to the holding executed in pursuance of directions given by the Agricultural Executive Committee under Defence Regulations or of a scheme approved by the Agricultural Executive Committee, then, subject to the provisions of this section, the rent of the holding shall, if the landlord by notice in writing served on the tenant within six months from the completion of the improvement so requires, be increased as from the completion of the improvement or, where the improvement was completed before the first day of November, ninteen hundred and forty-eight, as from that day, by an amount equal to the increase in the rental value of the holding attributable to the carrying out of the improvement: Provided that where any grant has been made to the landlord in respect of the improvement out of moneys provided by Parliament, the increase in rent provided for by the foregoing provisions of this subsection shall be reduced proportionately. (2) No increase of rent shall be made under the foregoing subsection if before the first day of November, nineteen hundred and forty-eight, the landlord and the tenant agreed on any increase in rent or other benefit to the landlord in respect of the improvement, or if before that day any sum became payable under subsection (3) of section three of the Agricultural Holdings (Scotland) Act, 1923, or section nine of the Agriculture (Miscellaneous Provisions) Act, 1943, or section nine of the Hill Farming Act, 1946, in respect of the cost of executing it. (3) Where interest on the cost of works for the supply of water, or rent in respect of such an improvement as is mentioned in paragraph (d) of subsection (1) of this section, became payable under the provisions of section nine of the Agriculture (Miscellaneous Provisions) Act, 1943, or of subsection (3) of section nine of the Hill Farming Act, 1946, as the case may be, before the first day of November, nineteen hundred and forty-eight, or became payable under the said provisions after that day by virtue of an agreement between the landlord and the tenant entered into before that day, it shall continue to be recoverable notwithstanding that the said provisions are by virtue of the Agriculture (Scotland) Act, 1948, no longer in force. (4) Any question arising between the landlord and the tenant of the holding under this section shall be determined by arbitration. (5) In this section the expression “Agricultural Executive Committee” means the Agricultural Executive Committee for any area to whom the Secretary of State has delegated any of his powers under Defence Regulations.

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(1) Where under the lease of an agricultural holding, whether entered into before or after the commencement of this Act, provision is made for the maintenance of specified land, or a specified proportion of the holding, as permanent pasture, the landlord or the tenant may, by notice in writing served on his tenant or landlord, demand a reference to arbitration under this Act of the question whether it is expedient in order to secure the full and efficient farming of the holding that the amount of land required to be maintained as permanent pasture should be reduced. (2) On a reference under the foregoing subsection the arbiter may by his award— (a) direct that the lease shall have effect subject to such modifications of the provisions thereof as to land which is to be maintained as permanent pasture or is to be treated as arable land, and as to cropping, as may be specified in the direction; and (b) if he gives a direction reducing the area of land which under the lease is to be maintained as permanent pasture, order that the lease shall have effect as if it provided that on quitting the holding on the termination of the tenancy the tenant should leave as permanent pasture, or should leave as temporary pasture sown with seeds mixture of such kind as may be specified in the order, such area of land (in addition to the area of land required by the lease, as modified by the direction, to be maintained as permanent pasture) as may be so specified, so however that the area required to be left as aforesaid shall not exceed the area by which the land required by the lease to be maintained as permanent pasture has been reduced by virtue of the direction.

10 Leases to continue in force notwithstanding variation of terms, etc.

The lease of an agricultural holding shall not be deemed to have been brought to an end, and accordingly neither the landlord nor the tenant of the holding shall be entitled to bring proceedings to terminate the lease or, except with the consent of the other party, to treat it as at an end, by reason only that any new term has been added to the lease or that any of the terms of the lease (including the rent payable thereunder) have been varied or revised in pursuance of any of the foregoing provisions of this Act in that behalf.

11 Certain agreements by incoming tenant to pay compensation due to outgoing tenant to be void.

(1) Subject to the provisions of this section, any agreement made after the first day of November, nineteen hundred and forty-eight, by the incoming tenant of an agricultural holding with his landlord whereby the incoming tenant undertakes to pay to an outgoing tenant any compensation payable by the landlord under or in pursuance of this Act or the Agricultural Holdings (Scotland) Acts, 1923 to 1948, in respect of improvements or to refund to the landlord any compensation payable as aforesaid which has been paid by the landlord to an outgoing tenant, shall be null and void. (2) This section shall not apply to an agreement in writing entered into by the incoming tenant of a holding with his landlord whereby the incoming tenant undertakes to pay to an outgoing tenant, up to such maximum amount as may be specified in the agreement, any compensation payable by the landlord under or in pursuance of this Act or the Agricultural Holdings (Scotland) Acts, 1923 to 1948, in respect of the whole or part of any improvement of the kind specified in Part 111 of the First Schedule to this Act, or to refund to the landlord, up to such maximum amount as aforesaid, any compensation so payable which has been paid by the landlord to an outgoing tenant.

12 Freedom of cropping and disposal of produce.

(1) Subject to the provisions of this section, the tenant of an agricultural holding shall, notwithstanding any custom of the country or the provisions of any lease or of any agreement respecting the disposal of crops or the method of cropping of arable lands, have full right, without incurring any penalty, forfeiture or liability,— (a) to dispose of the produce of the holding, other than manure produced thereon; (b) to practise any system of cropping of the arable land on the holding: Provided that this subsection shall not have effect unless, before exercising his rights thereunder or as soon as may be after exercising them, the tenant makes suitable and adequate provision, in the case of an exercise of the right to dispose of produce, to return to the holding the full equivalent manurial value to the holding of all crops sold off or removed from the holding in contravention of the custom, contract or agreement, and, in the case of an exercise of the right to practise any system of cropping, to protect the holding from injury or deterioration. (2) If the tenant of an agricultural holding exercises his rights under the foregoing subsection in such a manner as to injure or deteriorate, or to be likely to injure or deteriorate, the holding, the landlord shall have the following remedies, but no other, that is to say,— (a) should the case so require, he shall be entitled to obtain an interdict restraining the exercise of the tenant’s rights under that subsection in that manner; (b) in any case, on the tenant quitting the holding on the termination of the tenancy the landlord shall be entitled to recover damages for any injury to or deterioration of the holding attributable to the exercise by the tenant of his rights under that subsection. (3) For the purposes of any proceedings for an interdict brought under the last foregoing subsection, the question whether a tenant is exercising, or has exercised, his rights under subsection (1) of this section in such a manner as to injure or deteriorate his holding, or to be likely to injure or deteriorate his holding, shall be determined by arbitration; and a certificate of the arbiter as to his determination of any such question as aforesaid shall, for the purposes of any proceedings (including an arbitration) brought under this section, be conclusive proof of the facts stated in the certificate. (4) Subsection (1) of this section shall not apply— (a) in the case of a tenancy from year to year, as respects the year before the tenant quits the holding or any period after he has given or received notice to quit which results in his quitting the holding; or (b) in any other case, as respects the year before the expiration of the lease. (5) In this section the expression “arable land” does not include land in grass which, by the terms of a lease, is to be retained in the same condition throughout the tenancy. In this subsection any reference to the terms of a lease shall, in a case where the Secretary of State has directed under section twelve of the Agriculture (Scotland) Act, 1948, or under section nine of this Act or an arbiter has been directed under the said section nine that the lease shall have effect subject to modifications, be construed as a reference to the terms of the lease as so modified.

13 Prohibition of removal of manure, etc., after notice to terminate the tenancy.

Where notice to terminate the tenancy of an agricultural holding is given, either by the tenant or by the landlord, the tenant shall not, subject to any agreement to the contrary, at any time after the date of the notice, sell or remove from the holding any manure or compost, or any hay or straw or roots grown in the last year of the tenancy, unless and until he has given the landlord or the incoming tenant a reasonable opportunity of agreeing to purchase on the termination of the tenancy at their fair market value, or at such other value as is provided by the lease, the said manure, compost, hay, straw or roots.

14 Tenant’s right to remove fixtures and buildings.

(1) Subject to the provisions of this section— (a) any engine, machinery, fencing or other fixture affixed to an agricultural holding by the tenant thereof; and (b) any building (other than one in respect of which the tenant is entitled to compensation under this Act or otherwise) erected by him on the holding; not being a fixture affixed or, as the case may be, a building erected, in pursuance of some obligation in that behalf or instead of some fixture or building belonging to the landlord, as the case may be, shall be removable by the tenant at any time during the continuance of the tenancy or before the expiration of six months, or such longer period as may be agreed, from the termination of the tenancy and shall remain his property so long as he may remove it by virtue of this subsection. (2) The right conferred by the foregoing subsection shall not be exercisable in relation to a fixture or building unless the tenant (a) has paid all rent owing by him and has performed or satisfied all his other obligations to the landlord in respect of the holding; and (b) has, at least one month before both the exercise of the right and the termination of the tenancy, given to the landlord notice in writing of his intention to remove the fixture or building. (3) If, before the expiration of the notice aforesaid, the landlord gives to the tenant a counter-notice in writing electing to purchase a fixture or building comprised in the notice, subsection (1) of this section shall cease to apply to that fixture or building, but the landlord shall be liable to pay to the tenant the fair value thereof to an incoming tenant of the holding. (4) In the removal of a fixture or building by virtue of subsection (1) of this section, the tenant shall not do to any other building or other part of the holding any avoidable damage, and immediately after the removal shall make good all damage so done that is occasioned by the removal.

15 Compensation for damage by game.

(1) Subject to the provisions of this section, where the tenant of an agricultural holding has sustained damage to his crops from game, the right to kill and take which is vested neither in him nor in anyone claiming under him other than the landlord, and which the tenant has not permission in writing to kill, he shall be entitled to compensation from his landlord for the damage if it exceeds in amount the sum of 12 pence per hectare of the area over which it extends: Provided that compensation shall not be recoverable under this section unless— (a) notice in writing is given to the landlord as soon as may be after the damage was first observed by the tenant, and a reasonable opportunity is given to the landlord to inspect the damage— (i) in the case of damage to a growing crop, before the crop is begun to be reaped, raised or consumed; and (ii) in the case of damage to a crop reaped or raised, before the crop is begun to be removed from the land; and (b) notice in writing of the claim, together with the particulars thereof, is given to the landlord within one month after the expiration of the calendar year, or such other period of twelve months as by agreement between the landlord and the tenant may be substituted therefor, in respect of which the claim is made. (2) The amount of compensation payable under this section shall, in default of agreement made after the damage has been suffered, be determined by arbitration. (3) Where the right to kill and take the game is vested in some person other than the landlord, the landlord shall be entitled to be indemnified by that other person against all claims for compensation under this section; and any question arising under the foregoing provisions of this subsection shall be determined by arbitration. (4) In this section the expression “game” means deer, pheasants, partridges, grouse and black game.

16 Restriction of landlord’s right to penal rent or liquidated damages.

Notwithstanding any provision in a lease of an agricultural holding making the tenant thereof liable to pay a higher rent or other liquidated damages in the event of a breach or non-fulfilment of any of the terms or conditions in the lease, the landlord shall not be entitled to recover any sum in consequence of any breach or non-fulfilment in excess of the damage actually suffered by him in consequence of the breach or non-fulfilment.

17 Making of record of condition, etc., of holding.

(1) The landlord or the tenant of an agricultural holding may at any time during the tenancy, require the making of a record of the condition of the fixed equipment on, an( of the cultivation of, the holding; and the tenant may, at any time during the tenancy, require the making of a record of— (a) existing improvements carried out by him or in respect of the carrying out of which he has, with the consent in writing of his landlord, paid compensation to an outgoing tenant; and (b) any fixtures or buildings which, under section fourteen of this Act, he is entitled to remove. (2) Any record under this section shall be made by a person to be appointed by the Secretary of State, and shall be in such form as may be prescribed. (3) The cost of making a record under this section shall, in default of agreement between the landlord and the tenant, be borne by them in equal shares. (4) Any record made under this section shall show any consideration or allowances which have been made by the landlord to the tenant or by the tenant to the landlord. (5) Subject to the provisions of section five of this Act, a record may, if the landlord or the tenant so requires, be made under this section relating to a part only of the holding or to the fixed equipment only. (6) Any question or difference between the landlord and the tenant arising out of the making of a record under this section shall, on the application of the landlord or the tenant, as the case may be, be referred to the Land Court, and the Land Court shall determine such question or difference accordingly. (7) The remuneration of the person appointed by the Secretary of State to make a record under this section shall be such amount as the Secretary of State may fix, and any other expenses of and incidental to the making of the record shall be subject to taxation by the auditor of the sheriff court, but that taxation shall be subject to review by the sheriff. (8) The remuneration of the person appointed by the Secretary of State to make a record under this section shall be recoverable by that person from either the landlord or the tenant, but any amount paid by either of those parties in respect of that remuneration, or of any other expenses of and incidental to the making of the record, in excess of the share payable by him as aforesaid of the cost of making the record shall be recoverable by him from the other party.

18

The landlord of an agricultural holding or any person authorised by him may at all reasonable times enter on the holding for any of the following purposes, that is to say— (a) viewing the state of the holding; (b) fulfilling the landlord’s responsibilities to manage the holding in accordance with the rules of good estate management; (c) providing, improving, replacing or renewing fixed equipment on the holding otherwise than in fulfilment of his said responsibilities.

19 Removal of tenant for non-payment of rent.

(1) When six months’ rent of an agricultural holding is due and unpaid, the landlord shall be entitled to raise an action of removing in the sheriff court against the tenant, concluding for his removal from the holding at the term of Whitsunday or Martinmas next ensuing after the action is raised, and the sheriff may, unless the arrears of rent then due are paid or caution is found to his satisfaction for them, and for one year’s rent further, decern the tenant to remove, and may eject him at the said term in like manner as if the lease were determined and the tenant had been legally warned to remove. (2) A tenant of a holding removed under the foregoing subsection shall have the rights of an outgoing tenant to which he would have been entitled if his tenancy had terminated naturally at the term of Whitsunday or Martinmas aforesaid. (3) The provisions of section five of chapter XV of Book L of the Codifying Act of Sederunt of the fourteenth day of June, nineteen hundred and thirteen, anent removings shall not apply in any case where the procedure under this section is competent.

20 Bequest of lease.

(1) Subject to the provisions of this section, the tenant of an agricultural holding may, by will or other testamentary writing, bequeath his lease of the holding to his son-in-law or daughter-in-law or any one of the persons who would be, or would in any circumstances have been, entitled to succeed to the estate on intestacy by virtue of the Succession (Scotland) Act 1964. (2) A person to whom the lease of a holding is bequeathed as aforesaid (in this section referred to as “the legatee”) shall, if he accepts the bequest, give notice of the bequest to the landlord of the holding within twenty-one days after the death of the tenant, or, if he is prevented by some unavoidable cause from giving such notice within that period, as soon as possible thereafter. The giving of such notice shall import acceptance of the lease and, unless the landlord gives a counter-notice under the next following subsection, the lease shall be binding on the landlord and on the legatee, as landlord and tenant respectively, as from the date of the death of the deceased tenant. (3) Where notice as aforesaid has been given to the landlord he may within one month after the giving of the notice give to the legatee a counter-notice intimating that he objects to receive him as tenant under the lease. (4) If the landlord gives a counter-notice under the last foregoing subsection, the legatee may make application to the Land Court for an order declaring him to be tenant under the lease as from the date of the death of the deceased tenant. (5) If, on the hearing of such application, any reasonable ground of objection stated by the landlord is established to the satisfaction of the Land Court, they shall declare the bequest to be null and void, but in any other case they shall make an order in terms of the application. (6) Pending any proceedings under this section, the legatee with the consent of the executor in whom the lease is vested under section 14 of the Succession (Scotland) Act 1964shall, unless the Land Court on cause shown otherwise direct, have possession of the holding. (7) If the legatee does not accept the bequest, or if the bequest is declared null and void as aforesaid, the right to the lease shall be treated as intestate estate of the deceased tenant in accordance with Part I of the Succession (Scotland) Act 1964.

21 Right of landlord to object to acquirer of lease.

(1) The acquirer of the lease of an agricultural holding shall give notice of the acquisition to the landlord of the holding within twenty-one days after the date of the acquisition, or, if he is prevented by some unavoidable cause from giving such notice within that period, as soon as possible thereafter, and unless the landlord gives a counter-notice under the next following subsection, the lease shall be binding on the landlord and on the acquirer, as landlord and tenant respectively, as from the date of the acquisition. (2) Where notice as aforesaid has been given to the landlord he may, within one month after the giving of the notice, give to the acquirer a counter-notice intimating that he objects to receive him as tenant under the lease and not before the expiration of one month from the giving of the counter-notice the landlord may make application to the Land Court for an order terminating the lease. (3) The Land Court, if they are satisfied that the landlord has established any reasonable ground of objection, shall make such an order to take effect as from such term of Whitsunday or Martinmas as they may specify. (4) Pending any proceedings under this section, the acquirer, with the consent of the executor in whom the lease is vested under section 14 of the Succession (Scotland) Act 1964, shall, unless the Land Court on cause shown otherwise direct, have possession of the holding. (5) The termination of the lease under this section shall be treated, for the purposes of the provisions of this Act with respect to compensation, as the termination of the acquirer’s tenancy of the holding; but nothing in this section shall be construed as entitling him to any compensation for disturbance. (6) In this section any reference in relation to the lease of an agricultural holding to an acquirer is a reference to any person to whom the lease is transferred under section 16 of the Succession (Scotland) Act 1964.

22 Provisions as to payment for implements, etc., sold on quitting holding.

(1) Where a tenant of an agricultural holding has entered into an agreement, or it is a term of the lease of the holding, that the tenant will, on quitting the holding, sell to the landlord or to the incoming tenant any implements of husbandry, fixtures, farm produce or farm stock on, or used in connection with, the holding, it shall be deemed, notwithstanding anything in the agreement or in the lease to the contrary, to be a condition of the agreement or of the lease, as the case may be, that the property in the goods shall not pass to the buyer until the price is paid and that payment of the price shall be made within one month after the tenant has quitted the holding or, if the price of the goods is to be ascertained by a valuation, within one month after the delivery of the award in the valuation. (2) Where payment of the price is not made within one month as aforesaid the outgoing tenant shall be entitled to sell or remove the goods and to receive from the landlord or the incoming tenant, as the case may be, by whom the price was payable, compensation of an amount equal to any loss or expense unavoidably incurred by the outgoing tenant upon or in connection with such sale or removal, together with any expenses reasonably incurred by him in the preparation of his claim for compensation. (3) Any question arising as to the amount of compensation payable under the last foregoing subsection shall be determined by arbitration.

23 Application of sums recovered under fire insurance policy.

Where the tenant of an agricultural holding is liable in payment of the whole or any part of the premium due under a fire insurance policy in the name of the landlord over any buildings or other subjects included in the lease of the holding and the landlord recovers any sum under such policy in respect of the destruction of, or damage to, the buildings or other subjects by fire, he shall be bound, unless the tenant otherwise agrees, to expend such sum on the rebuilding, repair, or restoration of the building or subjects so destroyed or damaged in such manner as may be agreed or as may be determined, failing agreement, by the Secretary of State.

24 Provisions as to giving of notices to quit.

(1) Notwithstanding the termination of the stipulated endurance of any lease of an agricultural holding, the tenancy shall not come to an end unless, not less than one year nor more than two years before the termination of the lease, written notice has been given by either party to the other of his intention to bring the tenancy to an end. The provisions of this subsection shall have effect notwithstanding any agreement or any provision in the lease to the contrary. (2) In the case of a lease continued in force by tacit relocation the period of notice required to terminate the tenancy shall be not less than one year nor more than two years. (3) The provisions of the Sheriff Courts (Scotland) Act, 1907, relating to removings shall, in the case of an agricultural holding to which this section applies, have effect subject to the provisions of this section. (4) Notice by the landlord to the tenant under this section shall be given either— (a) in the same manner as notice of removal under section six of the Removal Terms (Scotland) Act, 1886; or (b) in the form and manner prescribed by the Sheriff Courts (Scotland) Act, 1907; and such notice shall come in place of the notice required by the said Act of 1907. (5) Nothing in this section shall affect the right of the landlord of an agricultural holding to remove a tenant whose estate has been sequestrated under the Bankruptcy (Scotland) Act, 1913, or who by failure to pay rent or otherwise has incurred any irritancy of his lease or other liability to be removed. (6) The provisions of this section relative to notice shall not apply— (a) to a notice given in pursuance of a stipulation in a lease entitling the landlord to resume land for building, planting, feuing or other purposes (not being agricultural purposes); or (b) to subjects let under a lease for any period less than a year, not being a lease which by virtue of section two of this Act takes effect as a lease from year to year.

25 Restrictions on operation of notices to quit.

(1) Where notice to quit an agricultural holding or part of an agricultural holding is given to the tenant thereof, and not later than one month from the giving of the notice to quit the tenant serves on the landlord a counter-notice in writing requiring that this subsection shall apply to the notice to quit, then, subject to the provisions of the next following subsection, the notice to quit shall not have effect unless the Secretary of State consents to the operation thereof. (2) The foregoing subsection shall not apply where— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) the notice to quit relates to land being permanent pasture which the landlord has been in the habit of letting annually for seasonal grazing or of keeping in his own occupation and which has been let to the tenant for a definite and limited period for cultivation as arable land on the condition that he shall, along with the last or waygoing crop, sow permanent grass seeds and it is stated in the notice that it is given by reason of the matter aforesaid; (c) the notice to quit is given on the ground that the land is required for a use, other than for agriculture, for which permission has been granted on an application made under the enact ments relating to town and country planning, or for which (otherwise than by virtue of any provision of those enactments) such permission is not required, and that fact is stated in the notice; (d) the Secretary of State, on an application in that behalf made to him not more than nine months before the giving of the notice to quit, was satisfied in relation to the holding that the tenant was not fulfilling his responsibilities to farm in accordance with the rules of good husbandry, and certified that he was so satisfied, and that fact is stated in the notice; (e) at the date of the giving of the notice to quit the tenant had failed to comply with a demand in writing served on him by the landlord requiring him within two months from the service of the demand to pay any rent due in respect of the holding, or within a reasonable time to remedy any breach by the tenant, which was capable of being remedied, of any term or condition of his tenancy which was not inconsistent with the fulfilment of his responsibilities to farm in accordance with the rules of good husbandry, and it is stated in the notice that it is given by reason of the matter aforesaid; (f) at the date of the giving of the notice to quit the interest of the landlord in the holding had been materially prejudiced by the commission by the tenant of a breach, which was not capable of being remedied in reasonable time and at economic cost, of any term or condition of the tenancy which was not inconsistent with the fulfilment by the tenant of his responsibilities to farm in accordance with the rules of good husbandry, and it is stated in the notice that it is given by reason of the matter aforesaid; (g) at the date of the giving of the notice to quit the tenant was a person who had become notour bankrupt or had executed a trust deed for behoof of his creditors, and it is stated in the notice that it is given by reason of the matter aforesaid. (h) subject to section 26A of this Act and to subsection (2A) below, at the date of the giving of the notice to quit the tenant was a person who after 1st August 1958 had acquired right to the lease of the holding— (i) under section 16 of the Succession (Scotland) Act 1964; or (ii) as a legatee under section 20 of this Act. (2A) Notice to quit is duly given to such tenant as is mentioned in paragraph (h) of subsection (2) above if— (a) it complies with section 24 of this Act; and (b) it specifies as its effective date— (i) where, when the tenant acquired right to the lease, the unexpired period of the lease exceeded two years, the term of outgo stipulated in the lease; (ii) where, when the tenant acquired right to the lease, the unexpired period was two years or less, the term of outgo stipulated in the lease or the corresponding date in any subsequent year, being a date not less than one nor more than three years after the said acquisition. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26 Provisions as to consents for purposes of preceding section.

(1) Except where section 26A(3) of this Act applies The Agricultural Land Tribunal shall consent under the last foregoing section to the operation of a notice to quit an agricultural holding or part of an agricultural holding if, but only if, they are satisfied as to one or more of the following matters, being a matter or matters specified by the landlord in his application for their consent, that is to say— (a) that the carrying out of the purpose for which the landlord proposes to terminate the tenancy is desirable in the interests of good husbandry as respects the land to which the notice relates, treated as a separate unit; or (b) that the carrying out thereof is desirable in the interests of sound management of the estate of which the land to which the notice relates forms part or which that land constitutes; or (c) that the carrying out thereof is desirable for the purposes of agricultural research, education, experiment or demonstration, or for the purposes of the enactments relating to smallholdings or such holdings as are mentioned in section sixty-four of the Agriculture (Scotland) Act, 1948 or allotments; or (d) that greater hardship would be caused by withholding than by giving consent to the operation of the notice; or (e) that the landlord proposes to terminate the tenancy for the purpose of the land’s being used for a use, other than for agriculture, not falling within paragraph (c) of subsection (2) of the last foregoing section: Provided that, notwithstanding that they are satisfied as aforesaid, the Tribunal shall withhold consent to the operation of the notice to quit if in all the circumstances it appears to them that a fair and reasonable landlord would not insist on possession. (2)—(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) Where . . . the Land Court consents under the last foregoing section to the operation of a notice to quit . . . the Court may , subject to section 26A(4) of this Act, impose such conditions as appear to . . . the Court requisite for securing that the land to which the notice relates will be used for the purpose for which the landlord proposes to terminate the tenancy. (6) Where, on an application by the landlord in that behalf the Secretary of State is satisfied that by reason of any change of circumstances or otherwise any condition imposed under the last foregoing subsection ought to be varied or revoked, he shall vary or revoke the condition accordingly.

26A Termination of tenancies acquired by succession.

(1) This section and subsection (1) of section 25 of this Act shall apply where notice to quit is duly given to the tenant of an agricultural holding who is a near relative of the deceased tenant and has acquired right to the lease of the holding— (a) under section 16 of the Succession (Scotland) Act 1964; or (b) as a legatee, under section 20 of this Act. (2) For the purposes of this section, a notice is duly given if— (a) it complies with section 24 of this Act; (b) it specifies the Case set out in the Ninth Schedule to this Act under which it is given; and (c) it specifies as its effective date— (i) where, when the tenant acquired right to the lease, the unexpired period of the lease exceeded two years, the term of outgo stipulated in the lease; (ii) where, when the tenant acquired right to the lease, the unexpired period was two years or less, the term of outgo stipulated in the lease or the corresponding date in any subsequent year, being a date not less than one nor more than three years after the said acquisition. (3) The Land Court shall consent to the operation of a notice duly given under this section— (a) where the holding was let before 1st January 1984, if they are satisfied that the circumstances are as specified in any Case in Part I of the said Ninth Schedule; (b) where the holding was let on or after that date and the notice specifies any of Cases 4, 5 or 7 in the said Schedule, unless the tenant satisfies them that the circumstances are not as specified in that Case (provided that, for the purposes of Case 7, the tenant shall not be required to prove that he is not the owner of any land); (c) where the holding was let on or after the said date, if they are satisfied that the circumstances are as specified in Case 6 in that Schedule; Provided that, where any of Cases 1, 2, 3, 6 or 7 in that Schedule applies, the Court shall withhold consent on that ground if it appears to them that a fair and reasonable landlord would not insist on possession. (4) Where consent is given because the circumstances are as specified in Case 2 or 6 of the said Schedule, the Land Court shall impose such conditions as appear to them necessary to secure that the holding to which the notice relates will, within two years after the termination of the tenancy, be amalgamated with the land specified in the notice; and section 30 of this Act shall, with any necessary modifications, apply to a condition imposed under this subsection as that section applies to a condition imposed under section 26 of this Act. (5) Part III of the said Schedule shall have effect for the purposes of interpretation of this section and that Schedule.

27

(1) An application by a landlord for the consent of the Land Court under section twenty-five of this Act to the operation of a notice to quit shall be made within one month after service on the landlord by the tenant of a counter-notice requiring that subsection (1) of that section shall apply to the notice to quit. (2) A tenant to whom has been given a notice to quit in connection with which any question arises under subsection (2) of section twenty-five of this Act shall, if he requires such question to be determined by arbitration under this Act, give notice to the landlord to that effect within one month after the notice to quit has been served on him; and where the award of the arbiter in an arbitration so required is such that the provisions of subsection (1) of section twenty-five of this Act would have applied to the notice to quit if a counter-notice had been served within the period limited by that subsection the period within which a counter-notice may be served under that subsection shall be extended up to the expiration of one month from the issue of the arbiter’s award. (3) Where such an arbitration as is referred to in the last foregoing subsection has been required by the tenant, or where an application has been made to the Land Court for their consent to the operation of a notice to quit, the operation of the notice to quit shall be suspended until the issue of the arbiter’s award or of the decision of the Land Court, as the case may be. (4) Where the decision of the Land Court giving their consent to the operation of a notice to quit, or the award of the arbiter in such an arbitration as is referred to in subsection (2) of this section, is issued at a date later than six months before the date on which the notice to quit is expressed to take effect, the Land Court, on application made to them in that behalf at any time not later than one month after the issue of the decision or award aforesaid, may postpone the operation of the notice to quit for a period not exceeding twelve months. (5) If the tenant of an agricultural holding receives from the landlord notice to quit the holding or a part thereof and in consequence thereof gives to a sub-tenant notice to quit that holding or part, the provisions of subsection (1) of section twenty-five of this Act shall not apply to the notice given to the sub-tenant; but if the notice to quit given to the tenant by the landlord does not have effect, the notice to quit given as aforesaid by the tenant to the sub-tenant shall not have effect. For the purposes of this subsection a notice to quit part of the holding which under the provisions of section thirty-three of this Act is accepted by the tenant as notice to quit the entire holding shall be treated as a notice to quit the holding. (6) Where notice is served on the tenant of an agricultural holding to quit the holding or a part thereof, being a holding or part which is subject to a sub-tenancy, and the tenant serves on the landlord a counter-notice in accordance with the provisions of subsection (1) of section twenty-five of this Act, the tenant shall also serve on the sub-tenant notice in writing that he has served such counter-notice on the landlord, and the sub-tenant shall be entitled to be a party to any proceedings before the Land Court for their consent to the notice to quit.

28

For the purposes of paragraph (d) of subsection (2) of section twenty-five of this Act, the landlord of an agricultural holding may apply to the Land Court for a certificate that the tenant is not fulfilling his responsibilities to farm in accordance with the rules of good husbandry, and the Land Court, if satisfied that the tenant is not fulfilling his said responsibilities, shall grant such a certificate. Provided that in determining whether to grant a certificate under this section, the Land Court shall disregard any practice adopted by the tenant in compliance with any obligation imposed on him by or accepted by him under section 31B of the Control of Pollution Act 1974.

29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

30 Penalty for breach of condition accompanying consent to notice to quit.

(1) Where, on giving consent under section twenty-five of this Act to the operation of a notice to quit an agricultural holding or part of an agricultural holding, the Land Court imposed a condition under section twenty-six of this Act for securing that the land to which the notice to quit related would be used for the purpose for which the landlord proposed to terminate the tenancy, and it is proved, on an application to the Land Court on behalf of the Crown— (a) that the landlord has failed to comply with the condition within the period allowed thereby, or (b) that the landlord has acted in contravention of the condition, the Land Court may by order impose on the landlord a penalty of an amount not exceeding two years’ rent of the holding at the rate at which rent was payable immediately before the termination of the tenancy, or, where the notice to quit related to a part only of the holding, of an amount not exceeding the proportion of the said two years’ rent which it appears to the Land Court is attributable to that part. (2) A penalty imposed under this section shall be a debt due to the Crown and shall, when recovered, be paid into the Exchequer.

31 Provisions as to notices to quit where holding agreed to be sold.

(1) The provisions of the two following subsections shall have effect where, after the commencement of this Act, notice to quit land being or comprised in an agricultural holding has been given to the tenant and at any time while the notice is current a contract is made for the sale of the landlord’s interest in the land or any part thereof. (2) Unless within the period of three months ending with the making of the contract the landlord and the tenant have agreed in writing whether on the making of such a contract the notice shall continue in force or be of no effect,— (a) the landlord shall, within the period of fourteen days from the making of the contract, or, where the notice to quit expires within the last mentioned period, before the expiration of the notice to quit, give notice in writing to the tenant of the making of the contract, and (b) the tenant may before the expiration of the notice to quit notify the landlord in writing that the tenant elects that the notice to quit shall continue in force, so however that the tenant shall not give a notification under this paragraph after the expiration of one month from the receipt by him of a notice under the last foregoing paragraph of the making of the contract. (3) In default of any such agreement or notification as aforesaid the notice to quit shall be of no effect unless the landlord has failed duly to give notice of the making of the contract and the tenant quits the holding in consequence of the notice to quit. (4) A notice to quit shall not be invalid by reason only that under any such agreement as aforesaid the operation of the notice is conditional.

32 Notices to quit part of holdings not to be invalid in certain cases.

(1) A notice to quit part of an agricultural holding held on a tenancy from year to year given by the landlord of the holding shall not be invalid on the ground that it relates to part only of the holding if it is given— (a) for the purpose of adjusting the boundaries between agricultural units or amalgamating agricultural units or parts thereof, or (b) with a view to the use of the land to which the notice relates for any of the purposes mentioned in the following subsection, and the notice states that it is given for that purpose or with a view to any such use, as the case may be. (2) The purposes referred to in paragraph (b) of the foregoing subsection are the following, that is to say— (a) the erection of farm labourers’ cottages or other houses with or without gardens; (b) the provision of gardens for farm labourers’ cottages or other houses; (c) the provision of allotments; (d) the provision of small holdings under the Small Landholders (Scotland) Acts, 1886 to 1931, or of such holdings as are mentioned in section sixty-four of the Agriculture (Scotland) Act, 1948; (e) the planting of trees; (f) the opening or working of any coal, ironstone, limestone, brick-earth, or other mineral, or of a stone quarry, clay, sand, or gravel pit, or the construction of any works or buildings to be used in connection therewith; (g) the making of a watercourse or reservoir; (h) the making of any road, railway, tramroad, siding, canal or basin, or any wharf, pier, or other work connected therewith.

33 Tenant’s right to treat notice to quit part of holding as notice to quit entire holding.

Where there is given to the tenant of an agricultural holding a notice to quit part of the holding, being such a notice as is rendered valid by the last foregoing section, then, if the tenant, within twenty-eight days after the giving of the notice, or, in a case where the operation of the notice depends on any proceedings under the foregoing provisions of this Act, within twenty-eight days after the time when it is determined that the notice has effect, gives to the landlord a counter-notice in writing to the effect that he accepts the notice to quit as a notice to quit the entire holding given by the landlord to take effect at the same time as the original notice, the notice to quit shall have effect accordingly.

34 Reduction of rent where tenant dispossessed of part of holding.

Where— (a) the tenancy of part of an agricultural holding terminates by reason of such a notice to quit as is rendered valid by section thirty-two of this Act; or (b) the landlord of an agricultural holding resumes possession of part of the holding in pursuance of a provision in that behalf contained in the lease; the tenant shall be entitled to a reduction of rent, of an amount to be determined by arbitration, proportionate to that part of the holding and in respect of any depreciation of the value to him of the residue of the holding caused by the severance or by the use to be made of the part severed: Provided that, in a case falling within paragraph (b) of this section, the arbiter, in determining the amount of the reduction, shall take into account any benefit or relief allowed to the tenant under the lease in respect of the land possession of which is resumed by the landlord.

35 Right to, and measure of, compensation for disturbance.

(1) Where the tenancy of an agricultural holding terminates by reason either— (a) of a notice to quit the holding given by the landlord; or (b) of a counter-notice given by the tenant under section thirty-three of this Act after the giving to him of such a notice to quit as is mentioned in that section; and in consequence of the notice or counter-notice, as the case may be, the tenant quits the holding, then, subject to the provisions of this section, compensation for the disturbance shall be payable by the landlord to the tenant in accordance with the provisions of this section: Provided that compensation shall not be payable under this subsection where the operation of subsection (1) of section twenty-five of this Act in relation to the notice to quit the holding or part, as the case may be, is excluded by virtue of paragraph (b), (d), (e), (f) or (g) of subsection (2) of that section . . . (2) The amount of the compensation payable under this section shall be the amount of the loss or expense directly attributable to the quitting of the holding which is unavoidably incurred by the tenant upon or in connection with the sale or removal of his household goods, implements of husbandry, fixtures, farm produce or farm stock on or used in connection with the holding, and shall include any expenses reasonably incurred by him in the preparation of his claim for compensation (not being expenses of an arbitration to determine any question arising under this section): Provided that— (a) the compensation payable under this section shall be an amount equal to one year’s rent of the holding at the rate at which rent was payable immediately before the termination of the tenancy without proof by the tenant of any such loss or expense as aforesaid; (b) the tenant shall not be entitled to claim any greater amount than one year’s rent of the holding unless he has given to the landlord not less than one month’s notice of the sale of any such goods, implements, fixtures, produce or stock as aforesaid and has afforded him a reasonable opportunity of making a valuation thereof; (c) the tenant shall not in any case be entitled to compensation in excess of two years’ rent of the holding. In this subsection the expression “rent” means the rent after deduction of such an amount as, failing agreement, the arbiter may find to be equivalent to the aggregate of the following amounts, that is to say— (i) the amount payable by the landlord in respect of the holding for the year in which the tenancy was terminated by way of . . . any . . . public rates, taxes or assessments or other public burdens, the charging of which on the landlord would entitle him to relief in respect of tax under Rule 4 of No. V of Schedule A to the Income Tax Act, 1918; and (ii) the amount (if any) recovered in respect of that year from the landlord in pursuance of subsection (1) of section forty-seven of the Local Government (Scotland) Act, 1929. (3) Where the tenant of an agricultural holding has lawfully sub-let the whole or part of the holding, and in consequence of a notice to quit given by his landlord becomes liable to pay compensation under this section to the sub-tenant, the tenant shall not be debarred from recovering compensation under this section by reason only that, owing to not being in occupation of the holding or of part of the holding, on the termination of his tenancy he does not quit the holding or that part. (4) Where the tenancy of an agricultural holding terminates by virtue of such a counter-notice as is mentioned in paragraph (b) of subsection (1) of this section and— (a) the part of the holding affected by the notice given by the landlord, together with any part of the holding affected by any such previous notice given by the landlord as is rendered valid by section thirty-two of this Act,is either less than one fourth part of the area of the original holding or of a rental value less than one fourth part of the rental value of the original holding, and (b) the holding as proposed to be diminished is reasonably capable of being farmed as a separate holding, compensation shall not be payable under this section except in respect of the part of the holding to which the notice to quit relates. (5) Compensation payable under this section shall be in addition to any compensation to which the tenant may be entitled apart from this section.

36 Application of sections 37 to 46.

(1) The provisions of the ten next following sections shall have effect with respect to the rights of the tenant of an agricultural holding with respect to compensation for an improvement specified in the Second Schedule to this Act carried out on the holding, being an improvement begun before the thirty-first day of July, nineteen hundred and thirty-one (in this Act referred to as “a 1923 Act improvement”), or for an improvement specified in the Third Schedule to this Act so carried out, being an improvement begun on or after that date and before the first day of November, nineteen hundred and forty-eight (in this Act referred to as “a 1931 Act improvement”). (2) An improvement being a 1923 Act improvement of a 1931 Act improvement is in this Act referred to as “an old improvement”.

37 Right of tenant to compensation for old improvements.

(1) The tenant shall, subject to the provisions of this Act, be entitled, at the termination of the tenancy, on quitting the the holding, to obtain from the landlord compensation for an old improvement carried out by the tenant: Provided that where the lease was entered into before the first day of January, nineteen hundred and twenty-one, the tenant shall not be entitled to compensation under this section for an improvement which he was required to carry out by the terms of his tenancy. (2) Nothing in this section shall prejudice the right of a tenant to claim any compensation to which he may be entitled under custom, agreement or otherwise, in lieu of any compensation provided by this section.

38 Amount of compensation for old improvements.

The amount of any compensation under this Act for an old improvement shall be such sum as fairly represents the value of the improvement to an incoming tenant.