42 Agreements as to compensation relating to market gardens.
(1) Where under an agreement in writing a tenant of an agricultural holding is entitled to compensation which is fair and reasonable having regard to the circumstances existing at the time of making the agreement, for an improvement for which compensation is payable by virtue of section 40 of this Act, such compensation shall, as respects that improvement, be substituted for compensation under this Act.
(2) The landlord and the tenant of an agricultural holding who have agreed that the holding shall be let or treated as a market garden may by agreement in writing substitute, for the provisions as to compensation which would otherwise be applicable to the holding, the provisions as to compensation in section 41(3) to (6) of this Act.
(1) Where the tenancy of an agricultural holding terminates by reason of—
(a) a notice to quit given by the landlord; or
(b) a counter-notice given by the tenant under section 30 of this Act,
and in consequence the tenant quits the holding, subject to subsections (2) to (8) below, compensation for the disturbance shall be payable by the landlord to the tenant.
(2) Compensation shall not be payable under this section where the application of section 22(1) of this Act to the notice to quit is excluded by any of paragraphs (a) or (c) to (f) of subsection (2) of that section.
(3) Subject to subsection (4) below, 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 arising from the determination of any question arising under this section).
(4) Where compensation is payable under this section—
(a) the compensation 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) In subsection (4) above “rent” means the rent after deduction of such an amount as, failing agreement, the Land Court determines as 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 Part II of the Income and Corporation Taxes Act 1988.
(6) 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 part of the holding, on the termination of his tenancy he does not quit the holding or that part.
(7) Where the tenancy of an agricultural holding terminates by virtue of a counter-notice given by the tenant under section 30 of this Act and—
(a) the part of the holding affected by the notice to quit given by the landlord, together with any part of the holding affected by any previous notice to quit given by the landlord which is rendered valid by section 29 of this Act, is either less than a quarter of the area of the original holding or of a rental value less than one quarter 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.
(8) Compensation under this section shall be in addition to any compensation to which the tenant may be entitled apart from this section.
44 Compensation for continuous adoption of special standard of farming.
(1) Where the tenant of an agricultural holding proves that the value of the holding to an incoming tenant has been increased during the tenancy by the continuous adoption of a standard of farming or a system of farming which has been more beneficial to the holding than—
(a) the standard or system required by the lease, or
(b) in so far as no system of farming is so required, the system of farming normally practised on comparable holdings in the district,
the tenant shall be entitled, on quitting the holding, to obtain from the landlord such compensation as represents the value to an incoming tenant of the adoption of that more beneficial standard or system.
(2) Compensation shall not be recoverable under subsection (1) above unless—
(a) the tenant has, not later than one month before the termination of the tenancy, given to the landlord notice in writing of his intention to claim such compensation; and
(b) a record of the condition of the fixed equipment on, and the cultivation of, the holding has been made under section 8 of this Act;
and shall not be so recoverable in respect of any matter arising before the date of the record so made or, where more than one such record has been made during the tenancy, before the date of the first such record.
(3) In assessing the compensation to be paid under subsection (1) above, due allowance shall be made for any compensation agreed or awarded to be paid to the tenant under Part IV of this Act for any improvement which has caused or contributed to the benefit.
(4) Nothing in this section shall entitle a tenant to recover, in respect of any improvement, any compensation which he would not be entitled to recover apart from this section.
45 Compensation to landlord for deterioration etc. of holding.
(1) The landlord of an agricultural holding shall be entitled to recover from the tenant, on his quitting the holding on termination of the tenancy, compensation—
(a) where the landlord shows that the value of the holding has been reduced by dilapidation, deterioration or damage caused by;
(b) where dilapidation, deterioration or damage has been caused to any part of the holding or to anything in or on the holding by;
non-fulfilment by the tenant of his responsibilities to farm in accordance with the rules of good husbandry.
(2) The amount of compensation payable under subsection (1) above shall be—
(a) where paragraph (a) of that subsection applies, (insofar as the landlord is not compensated for the dilapidation, deterioration or damage under paragraph (b) thereof) an amount equal to the reduction in the value of the holding;
(b) when paragraph (b) of that subsection applies, the cost, as at the date of the tenant’s quitting the holding, of making good the dilapidation, deterioration or damage.
(3) Notwithstanding anything in this Act, the landlord may, in lieu of claiming compensation under subsection (1)(b) above, claim compensation in respect of matters specified therein, under and in accordance with a lease in writing, so however that—
(a) compensation shall be so claimed only on the tenant’s quitting the holding on the termination of the tenancy;
(b) subject to section 46(4) of this Act compensation shall not be claimed in respect of any one holding both under such a lease and under subsection (1) above;
and compensation under this subsection shall be treated, for the purposes of subsection (2)(a) above and of section 46 (2) of this Act as compensation under subsection (1)(b) above.
45A Compensation arising as a result of diversification and cropping of trees
(1) Subject to subsection (2) below, the landlord of an agricultural holding shall be entitled to recover from the tenant, on his quitting the holding on termination of the tenancy, compensation where the landlord shows that the value of the holding has been reduced during the tenancy by the use, on or after the coming into force of this section, of the holding for a purpose which is not an agricultural purpose; and the amount of compensation payable shall be an amount equal to the reduction in the value of the holding.
(2) Where there are trees on the holding which were planted—
(a) by the tenant on or after the coming into force of this section; and
(b) for future cropping,
the landlord or tenant shall be entitled to recover from the other, on the tenant quitting the holding on the termination of the tenancy, compensation calculated in accordance with subsections (3) and (4) below.
(3) For the purposes of subsection (2) above, at the termination of the tenancy—
(a) the trees shall be valued on the basis of their worth to a willing purchaser for future cropping; and
(b) there shall be evaluated any loss of rent to the landlord which would be incurred by his retaining the trees until the likely date of cropping added to the cost to him of returning the land to agricultural use after cropping.
(4) If the value reached under paragraph (a) of subsection (3) above is—
(a) greater than that reached under paragraph (b) of that subsection, the tenant shall be entitled to the difference between the values as compensation;
(b) less than that reached under paragraph (b) of that subsection, the landlord shall be entitled to the difference between the values as compensation.
(5) Where the value of an agricultural holding has been increased during the tenancy by such use of the land or part of the land, or such change to the land, for a purpose that is not an agricultural purpose—
(a) as occurred on or after the coming into force of this section; and
(b) as had been permitted under section 40 or 41 of the Agricultural Holdings (Scotland) Act 2003 (asp 11),
the tenant shall, subject to subsections (6) and (7) below, be entitled, on quitting the holding on termination of the tenancy, to recover from the landlord such compensation as fairly represents the value of the use, change or carrying out of the activities to an incoming tenant.
(6) In ascertaining the amount of compensation payable under subsection (5) above—
(a) there shall be taken into account any benefit which the landlord has agreed in writing to give the tenant in consideration of the matters referred to in that subsection; and
(b) where a grant has been or will be made to the tenant in respect of those matters, subject to the conditions of the grant—
(i) if either the landlord or tenant has not made or will not make a contribution towards the cost of the improvement, or neither of them has made or will make such a contribution, the grant shall not be taken into account;
(ii) in any other case, there shall be taken into account such proportion of the grant as equals the proportion of the contribution by the tenant towards the cost of the improvement as a proportion of the total of his contribution added to that of the landlord.
(7) No compensation is payable under subsection (5) above if, owing to—
(a) any of the matters referred to in that subsection, the land is unsuitable for use for agriculture by an incoming tenant; or
(b) any use of fixed equipment in connection with any of those matters, the landlord would, at the commencement of an incoming tenant’s tenancy, be unable to fulfil his obligations under the lease as to fixed equipment,
in so far as those matters or, as the case may be, that use is attributable to those facts.
(8) Where the tenant has remained in occupation of the holding during two or more tenancies, he shall not be deprived of his right to compensation under this section by reason only that the use of the land or change to the land did not occur during the tenancy on the termination of which he quits the holding.
46 Compensation for failure to repair or maintain fixed equipment.
(1) This section applies where, by virtue of section 4 of this Act, the liability for the maintenance or repair of an item of fixed equipment is transferred from the tenant to the landlord.
(2) Where this section applies, the landlord may within the period of one month beginning with the date on which the transfer takes effect require that there shall be determined by the Land Court, and paid by the tenant, the amount of any compensation which would have been payable under section 45(1)(b) of this Act 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.
(3) Where this section applies, 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 period of one month referred to in subsection (2) above so requires, be determined by the Land Court, and any amount directed by the determination to be paid by the landlord shall be paid by him to the tenant.
(4) For the purposes of section 45(3)(b) of this Act any compensation under this section shall be disregarded.
(1) Compensation shall not be recoverable by the landlord under section 45 or 45A of this Act, unless the landlord has, not later than 3 months before the termination of the tenancy, given notice in writing to the tenant of his intention to claim compensation thereunder.
(2) Subsection (3) below shall apply to compensation—
(a) under section 45 of this Act, where the lease was entered into after 31st July 1931; or
(b) where the lease was entered into on or after 1st November 1948.
(3) When this subsection applies, no compensation shall be recoverable—
(a) unless during the occupancy of the tenant a record of the condition of the fixed equipment on, and cultivation of, the holding has been made under section 8 of this Act;
(b) in respect of any matter arising before the date of the record referred to in paragraph (a) above; or
(c) where more than one such record has been made during the tenant’s occupancy, in respect of any matter arising before the date of the first such record.
(4) If the landlord and the tenant so agree in writing a record of the condition of the holding shall, notwithstanding that it was made during the occupancy of a previous tenant, be deemed, for the purposes of subsection (3) above, to have been made during the occupancy of the tenant and on such date as may be specified in the agreement and shall have effect subject to such modifications (if any) as may be so specified.
(5) Where the tenant has remained in his holding during 2 or more tenancies, his landlord shall not be deprived of his right to compensation under section 45 of this Act in respect of any dilapidation, deterioration or damage by reason only that the tenancy during which the relevant act or omission occurred was a tenancy other than the tenancy at the termination of which the tenant quit the holding.
48 Landlord not to have right to penal rent or liquidated damages.
Notwithstanding any provision to the contrary in a lease of an agricultural holding, the landlord shall not be entitled to recover any sum, by way of higher rent, liquidated damages or otherwise, in consequence of any breach or non-fulfilment of a term or condition of the lease, which is in excess of the damage actually suffered by him in consequence of the breach or non-fulfilment.
49 Compensation provisions to apply to parts of holdings in certain cases.
(1) Where—
(a) the tenancy of part of an agricultural holding terminates by reason of a notice to quit which is rendered valid by section 29 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 provisions of this Act with respect to compensation shall apply as if that part of the holding were a separate holding which the tenant had quitted in consequence of a notice to quit.
(2) In a case falling within subsection (1)(b) above, the Land Court, in determining the amount of compensation payable to the tenant, 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.
(3) Where any land comprised in a lease is not an agricultural holding within the meaning of this Act by reason only that the land so comprised includes land to which subsection (4) below applies, the provisions of this Act with respect to compensation for improvements and for disturbance shall, unless it is otherwise agreed in writing, apply to the part of the land exclusive of the land to which subsection (4) below applies as if that part were a separate agricultural holding.
(4) This subsection applies to land which, owing to the nature of the building thereon or the use to which it is put, would not, if it had been separately let, be an agricultural holding.
50 Determination of claims for compensation where holding is divided.
Where the interest of the landlord in an agricultural holding has become vested in several parts in more than one person and the rent payable by the tenant of the holding has not been apportioned with his consent or under any statute, the tenant shall be entitled to require that any compensation payable to him under this Act shall be determined as if the holding had not been divided; and the Land Court shall, where necessary, apportion the amount awarded between the persons who for the purposes of this Act together constitute the landlord of the holding, and any additional expenses of the determination caused by the apportionment shall be directed by the Land Court to be paid by those persons in such proportions as it shall determine.
51 Compensation not to be payable for things done in compliance with this Act.
(1) Notwithstanding anything in the foregoing provisions of this Act or any custom or agreement—
(a) no compensation shall be payable to the tenant of an agricultural holding in respect of anything done in pursuance of a direction under section 9(2) of this Act;
(b) in assessing compensation to an outgoing tenant of an agricultural holding where land has been ploughed up in pursuance of a direction under section 9(2) of this Act, the value per hectare of any tenant’s pasture comprised in the holding shall be taken not to exceed the average value per hectare of the whole of the tenant’s pasture comprised in the holding on the termination of the tenancy.
(2) In subsection (1)(b) above “tenant’s pasture” means pasture laid down at the expense of the tenant or paid for by the tenant on entering the holding.
(3) The tenant of an agricultural holding shall not be entitled to compensation for an improvement specified in Part III of any of Schedules 3 to 5 to this Act, being an improvement carried out for the purposes of—
(a) the proviso to section 35(1) of the Agricultural Holdings (Scotland) Act 1923;
(b) the proviso to section 12(1) of the 1949 Act; or
(c) section 9 of this Act.
(1) Subject to subsection (2) below, 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.
(2) Compensation shall not be recoverable under subsection (1) above, unless—
(a) notice in writing is given to the landlord as soon as is practicable 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;
(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 6 months of the giving of notice under paragraph (a) above.
(3) The amount of compensation payable under subsection (1) above shall, in default of agreement made after the damage has been suffered, be determined by the Land Court.
(4) 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 this subsection shall be determined by the Land Court.
(5) In this section “game” means deer, pheasants, partridges, grouse and black game.
53 Extent to which compensation recoverable under agreements.
(1) Unless this Act makes express provision to the contrary, where provision is made in this Act for compensation to be paid to a landlord or tenant—
(a) he shall be so entitled notwithstanding any agreement, and
(b) he shall not be entitled to compensation except under that provision.
(2) Where the landlord and the tenant of an agricultural holding enter into an agreement in writing for such a variation of the terms of the lease as could be made by direction under section 9 of this Act, the agreement may provide for the exclusion of compensation in the same manner as under section 51(1) of this Act.
(3) A claim for compensation by a landlord or tenant of an agricultural holding in a case for which this Act does not provide for compensation shall not be enforceable except under an agreement in writing.
54 Additional payments to tenants quitting holdings.
(1) Where compensation for disturbance in respect of an agricultural holding or part of such a holding becomes payable—
(a) to a tenant, under this Act; or
(b) to a statutory small tenant, under section 13 of the 1931 Act;
subject to this Part of this Act, there shall be payable by the landlord to the tenant, in addition to the compensation, a sum to assist in the reorganisation of the tenant’s affairs of the amount referred to in subsection (2) below.
(2) The sum payable under subsection (1) above shall be equal to 4 times the annual rent of the holding or, in the case of part of a holding, 4 times the appropriate portion of that rent, at the rate at which the rent was payable immediately before the termination of the tenancy.
(1) Subject to subsection (2) below no sum shall be payable under section 54 of this Act in consequence of the termination of the tenancy of an agricultural holding or part of such a holding by virtue of a notice to quit where—
(a) the notice contains a statement that the carrying out of the purpose for which the landlord proposes to terminate the tenancy is desirable on any grounds referrred to in section 24(1)(a) to (c) of this Act and, if an application for consent in respect of the notice is made to the Land Court in pursuance of section 22(1) of this Act, the Court consent to its operation and state in the reasons for their decision that they are satisfied that termination of the tenancy is desirable on that ground;
(b) the notice contains a statement that the landlord will suffer hardship unless the notice has effect and, if an application for consent in respect of the notice is made to the Land Court in pursuance of section 22(1) of this Act, the Court consent to its operation and state in the reasons for their decision that they are satisfied that greater hardship would be caused by withholding consent than by giving it;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) section 22(1) of this Act does not apply to the notice by virtue of section 29(4) of the Agriculture Act 1967 (which relates to notices to quit given by the Secretary of State or a Rural Development Board with a view to boundary adjustments or an amalgamation).
(2) Subsection (1) above shall not apply in relation to a notice to quit where—
(a) the reasons given by the Land Court for their decision to consent to the operation of the notice include the reason that they are satisfied as to the matter referred to in section 24(1)(e) of this Act; or
(b) the reasons so given include the reason that the Court are satisfied as to the matter referred to in section 24(1)(b) of this Act ...; but the Court state in their decision that they would have been satisfied also as to the matter referred to in section 24(1)(e) of this Act if it had been specified in the application for consent.
(3) In assessing the compensation payable to the tenant of an agricultural holding in consequence of the compulsory acquisition of his interest in the holding or part of it or the compulsory taking of possession of the holding or part of it, no account shall be taken of any benefit which might accrue to the tenant by virtue of section 54 of this Act.
(4) Any sum payable in pursuance of section 54 of this Act shall be so payable notwithstanding any agreement to the contrary.
(5) The following provisions of this Act shall apply to sums claimed or payable in pursuance of section 54 of this Act as they apply to compensation claimed or payable under section 43 of this Act—
sections 43(6);
section 50;
section 74;
(6) No sum shall be payable in pursuance of section 54 of this Act in consequence of the termination of the tenancy of an agricultural holding or part of such a holding under section 12B where—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) the landlord is terminating the tenancy for the purpose of using the land for agriculture only; and
(c) the counter-notice under section 12B(2) contains a statement that the tenancy is being terminated for the said purpose.
(7) If any question arises between the landlord and the tenant as to the purpose for which a tenancy is being terminated, it shall be determined by the Land Court.
(8) In this section—
(a) references to section 54 of this Act do not include references to it as applied by section 56 of this Act; and
(b) for the purposes of subsection (1)(a) above, the reference in section 24(1)(c) of this Act to the purposes of the enactments relating to allotments shall be ignored.
56 Additional payments in consequence of compulsory acquisition etc. of agricultural holdings.
(1) This section applies where, in pursuance of any enactment providing for the acquisition or taking of possession of land compulsorily, any person (referred to in this section and in sections 57 and 58 of and Schedule 8 to this Act as “an acquiring authority”) acquires the interest of the tenant in, or takes possession of, an agricultural holding or any part of an agricultural holding or the holding of a statutory small tenant.
(2) Subject to subsection (3) below and sections 57 and 58 of this Act, where this section applies section 54 of this Act shall apply as if the acquiring authority were the landlord of the holding and compensation for disturbance in respect of the holding or part in question had become payable to the tenant on the date of the acquisition or taking of possession.
(3) No compensation shall be payable by virtue of this section in respect of an agricultural holding held under a tenancy for a term of 2 years or more unless the amount of such compensation is less than the aggregate of the amounts which would have been payable by virtue of this section if the tenancy had been from year to year: and in such a case the amount of compensation payable by virtue of this section shall (subject to section 57(4) of this Act) be equal to the difference.
(1) For the purposes of section 56 of this Act, a tenant of an agricultural holding shall be deemed not to be a tenant of it in so far as, immediately before the acquiring of the interest or taking of possession referred to in that section, he was neither in possession, nor entitled to take possession, of any land comprised in the holding: and in determining, for those purposes, whether a tenant was so entitled, any lease relating to the land of a kind referred to in section 2(1) of this Act which has not taken effect as a lease of the land from year to year shall be ignored.
(2) Section 56(1) of this Act shall not apply—
(a) where the acquiring authority require the land comprised in the holding or part in question for the purposes of agricultural research or experiment or of demonstrating agricultural methods or for the purposes of the enactments relating to small holdings;
(b) where the Secretary of State acquires the land under section 57(1)(c) or 64 of the Agricultural (Scotland) Act 1948.
(3) Where an acquiring authority exercise, in relation to any land, power to acquire or take possession of land compulsorily which is conferred on the authority by virtue of section 189 of the Town and Country Planning (Scotland) Act 1997 or section 7 of the New Towns (Scotland) Act 1968, the authority shall be deemed for the purposes of subsection (2) above not to require the land for any of the purposes mentioned in that subsection.
(4) Schedule 8 to this Act shall have effect in relation to payments under section 56 of this Act.
58 Effect of early resumption clauses on compensation.
(1) Where—
(a) the landlord of an agricultural holding resumes land under a provision in the lease entitling him to resume land for building, planting, feuing or other purposes (not being agricultural purposes); or
(b) the landlord of the holding of a statutory small tenant resumes the holding or part thereof on being authorised to do so by the Land Court under section 32(15) of the 1911 Act; and
(c) in either case, the tenant has not elected that section 55(2) of the Land Compensation (Scotland) Act 1973 (right to opt for notice of entry compensation) should apply to the notice;
compensation shall be payable by the landlord to the tenant (in addition to any other compensation so payable apart from this subsection) in respect of the land.
(2) The amount of compensation payable under subsection (1) above shall be equal to the value of the additional benefit (if any) which would have accrued to the tenant if the land had, instead of being resumed at the date of resumption, been resumed at the expiry of 12 months from the end of the current year of the tenancy.
(3) Section 55(4) and (5) of this Act shall apply to compensation claimed or payable under subsection (1) above with the substitution for references to section 54 of this Act of references to this section.
(4) In the assessment of the compensation payable by an acquiring authority to a statutory small tenant in the circumstances referred to in section 56(1) of this Act, any authorisation of resumption of the holding or part thereof by the Land Court under section 32(15) of the 1911 Act for any purpose (not being an agricultural purpose) specified therein shall—
(a) in the case of an acquisition, be treated as if it became operative only on the expiry of 12 months from the end of the year of the tenancy current when notice to treat in respect of the acquisition was served or treated as served on the tenant; and
(b) in the case of a taking of possession, be disregarded;
unless compensation assessed in accordance with paragraph (a) or (b) above would be less than would be payable but for this subsection.
(5) For the purposes of subsection (1) above, the current year of a tenancy for a term of 2 years or more is the year beginning with such day in the period of 12 months ending with a date 2 months before the resumption mentioned in that subsection as corresponds to the day on which the term would expire by the effluxion of time.
In sections 54 to 58 of and Schedule 8 to this Act—
“acquiring authority” has the meaning assigned to it by section 56(1) of this Act;
“statutory small tenant” and “holding” in relation to a statutory small tenant have the meanings given in section 32(1) of the 1911 Act; and
references to the acquisition of any property are references to the vesting of the property in the person acquiring it.
(1) The Land Court shall have jurisdiction to hear and determine any of the matters referred to in subsection (2) below.
(2) Those matters are—
(a) whether a tenancy of an agricultural holding in relation to which this Act applies exists or has been terminated;
(b) any question or difference between the landlord and tenant of such a holding arising out of the tenancy or in connection with the holding, whether such question or difference arises during the currency of or on or after the termination of the tenancy;
(c) any claim by the landlord or tenant of such a holding against the other which arises, under this Act or under any rule of law, custom or agreement, on or out of the termination of the tenancy (or part thereof);
(d) any other issue of fact or law relating to—
(i) a tenancy of such a holding or any other type of agricultural tenancy; or
(ii) agriculture,
which the landlord or tenant reasonably require to have resolved.
(3) Such matters include, in particular (and without prejudice to the generality of subsection (2) above), any question or difference between the landlord and tenant arising in relation to Part 2 of the Agricultural Holdings (Scotland) Act 2003 (asp 11) except any question or difference of fact relating to the determination of the price payable by the tenant for the purposes of that Part of that Act.
(4) Such matters do not include any question as to—
(a) who is entitled to succeed to the estate of a deceased person on intestacy by virtue of the Succession (Scotland) Act 1964 (c. 41);
(b) the validity of—
(i) any bequest; or
(ii) any transfer,
of an interest under the lease; or
(c) whether any such transfer is in the best interests of the estate of a deceased person.
(5) The Land Court shall also have jurisdiction to hear and determine any question or difference, between the tenant and any person with whom he has in pursuance of section 10A(1) of this Act entered into a contract assigning his interest under the lease, which arises out of or in connection with the assignation.
(6) Any application to the Land Court for a matter to be determined by the Court under this Act may be made by either party or by them jointly.
(7) In the application of this section to any question or difference arising in relation to Part 2 of the Agricultural Holdings (Scotland) Act 2003 (asp 11), “landlord” shall be construed as including a creditor in a standard security with a right to sell land (that expression being construed by reference to that Part of that Act) which comprises or forms part of an agricultural holding.
(8) Any reference in this section to a landlord or tenant of an agricultural holding shall be construed as including a person who was formerly the landlord or tenant thereof.
(9) Any other provision of an enactment which provides for the determination of a matter by the Land Court is without prejudice to this section.
(1) Subject to subsection (2) below, where this Act or section 116 of the Land Reform (Scotland) Act 2016 makes provision for any matter to be determined by the Land Court, the matter may, if the landlord and tenant so agree at or after the time when the matter arises, instead of being so determined, be determined by arbitration.
(2) Subsection (1) above does not apply in relation to any matter which may be determined by the Land Court—
(a) in pursuance of section ... 11, 12, 22, 26, 32, ... 41(1), 55(7) or 66(2) or (2A) of this Act; or
(b) on appeal.
(3) In this Act, other than in section 61A, “arbitration” includes any other method of resolving the matter; and “arbiter” shall be construed accordingly.
(1) This section applies to any arbitration to which a matter is referred by the landlord and tenant under section 61(1) of this Act.
(2) The agreement of the parties to refer the matter to arbitration shall have the effect of depriving each party of his right to—
(a) have the matter heard (or any issue in relation to the matter determined) by the Land Court (other than on appeal); and
(b) agree under section 61(1) of this Act to another method of resolving the matter.
(3) It shall be for the landlord and tenant to agree whether the arbitration is conducted by—
(a) a single arbiter; or
(b) two arbiters (with or without an oversman),
and the arbiter or, as the case may be, each arbiter, may be appointed by the parties or by a person nominated by them.
(4) The procedure to be followed at arbitration (including any matters to be taken into account by the arbiter and the matters to be contained in his award) shall, subject to subsection (5) below, be as the parties agree or, in the absence of such agreement, as the arbiter considers appropriate.
(5) Any provision of this Act or of section 116 of the Land Reform (Scotland) Act 2016 that would apply to the Land Court as respects its consideration or determination of any matter had the matter not been referred to arbitration shall apply as respects the consideration or determination of the matter by arbitration.
(6) Any party to the arbitration may appeal to the Land Court against the arbiter’s award on a question of law within 28 days of the award; and in an appeal under this subsection the Court may—
(a) quash, confirm or vary the award or any part of it; and
(b) where the Court quashes the award or any part of it—
(i) remit the case to the arbiter for further procedure; and
(ii) direct the arbiter on any question of law relevant to the case.
61B Clauses in leases as to resolution of disputes
Any term of—
(a) a lease of an agricultural holding in relation to which this Act applies; or
(b) any agreement in connection with such a lease (other than an agreement under section 61(1) of this Act),
that makes provision restricting any right of a landlord or tenant to apply to the Land Court under this Act or under section 116 of the Land Reform (Scotland) Act 2016 to have a matter determined by the Court shall, in so far as it makes that provision, be null and void.
(1) This section applies to any claim referred to in section 60(2)(c) of this Act.
(2) Without prejudice to any other provision of this Act, no claim to which this section applies shall be enforceable unless before the expiry of 2 months after the termination of the tenancy the claimant has given notice in writing to his landlord or his tenant, as the case may be, of his intention to make the claim.
(3) A notice under subsection (2) above shall specify the nature of the claim, and it shall be a sufficient specification thereof if the notice refers to the statutory provision, custom, or term of an agreement under which the claim is made.
(4) The landlord and the tenant may within 4 months after the termination of the tenancy by agreement in writing settle any such claim and the Secretary of State may upon the application of the landlord or the tenant made within that period extend the said period by 2 months and, on a second such application made during these 2 months, by a further 2 months.
(5) Where before the expiry of the period referred to in subsection (4) above and any extension thereof under that subsection any such claim has not been settled, the claim shall cease to be enforceable unless before the expiry of one month after the end of the said period and any such extension, or such longer time as the Secretary of State may in special circumstances allow
(a) an application has been made to the Land Court; or
(b) an arbiter has been appointed or any application has been made for the appointment of an arbiter,.
to determine the claim
(6) Where a tenant lawfully remains in occupation of part of an agricultural holding after the termination of a tenancy, references in subsections (2) and (4) above to the termination of the tenancy thereof shall be construed as references to the termination of the occupation.
Any award or agreement under this Act as to compensation, expenses or otherwise may, if any sum payable thereunder is not paid within one month after the date on which it becomes payable, be recorded for execution in the Books of Council and Session or in the sheriff court books, and shall be enforceable in like manner as a recorded decree arbitral.
66 Power to enable demand to remedy a breach to be modified on arbitration.
(1) Where a question or difference required by section 60 of this Act to be determined by the Land Court relates to a demand in writing served on a tenant by a landlord requiring the tenant to remedy a breach of any term or condition of his tenancy by the doing of any work of provision, repair, maintenance or replacement of fixed equipment, the Land Court may
(a) in relation to all or any of the items specified in the demand, whether or not any period is specified as the period within which the breach should be remedied, specify such period for that purpose as appears in all the circumstances to the Land Court to be reasonable;
(b) delete from the demand any item or part of an item which, having due regard to the interests of good husbandry as respects the holding and of sound management of the estate of which the holding forms part or which the holding constitutes, the Land Court is satisfied is unnecessary or unjustified;
(c) substitute, in the case of any item or part of an item specified in the demand, a different method or material for the method or material which the demand would otherwise require to be followed or used where, having regard to the purpose which that item or part is intended to achieve, the Land Court is satisfied that—
(i) the latter method or material would involve undue difficulty or expense,
(ii) the first-mentioned method or material would be substantially as effective for the purpose, and
(iii) in all the circumstances the substitution is justified.
(2) Where under subsection (1)(a) above the Land Court specifies a period within which a breach should be remedied or the period for remedying a breach is extended by virtue of subsection (4) below, the Land Court may, on the application of ... the landlord, specify a date for the termination of the tenancy by notice to quit in the event of the tenant’s failure to remedy the breach within that period, being a date not earlier than whichever of the two following dates is the later, that is to say—
(a) the date on which the tenancy could have been terminated by notice to quit served on the expiry of the period originally specified in the demand, or if no such period is so specified, on the date of the giving of the demand, or
(b) 6 months after the expiry of the period specified ... or, as the case may be, of the extended period.
(2A) Where, by virtue of section 61(1) of this Act, an arbiter specifies under subsection (1)(a) above a period within which a breach should be remedied or the period for remedying a breach is extended by virtue of subsection (4) below, the Land Court may, on the application of the arbiter or the landlord, specify a date for the termination of the tenancy by notice to quit in the event of the tenant’s failure to remedy the breach within that period, being a date not earlier than whichever of the two dates referred to in subsection (2) above is the later.
(3) A notice to quit on a date specified in accordance with subsection (2)or (2A) above shall be served on the tenant within one month after the expiry of the period specified by the Land Court or the extended time, and shall be valid notwithstanding that it is served less than 12 months before the date on which the tenancy is to be terminated or that that date is not the end of a year of the tenancy.
(4) Where—
(a) notice to quit to which 22(2)(d) of this Act applies is stated to be given by reason of the tenant’s failure to remedy within the period specified in the demand a breach of any term or condition of his tenancy by the doing of any work of provision, repair, maintenance or replacement of fixed equipment, or within that period as extended by the landlord or the Land Court; and
(b) it appears to the Land Court in a determination required under section 23(2) of this Act that, notwithstanding that the period originally specified or extended was reasonable, it would, in consequence of any happening before the expiry of that period, have been unreasonable to require the tenant to remedy the breach within that period;
the Land Court may treat the period as having been extended or further extended and make its determination as if the period had not expired; and where the breach has not been remedied at the date of the determination, the Land Court may extend the period as it considers reasonable, having regard to the length of period which has elapsed since the service of the demand.
(1) This section and sections 71 and 72 of this Act shall apply where, under a lease of an agricultural holding, the tenant is required at the termination of the tenancy to leave the stock of sheep on the holding to be taken over by the landlord or by the incoming tenant at a price or valuation to be fixed by any method, referred to in this section ... as a “sheep stock valuation”.
(1A) Where this section applies, the sheep stock valuation shall be determined by the Land Court in the manner provided for by virtue of this section.
(2) In a sheep stock valuation where the lease was entered into before or on 6th November 1946, the Land Court shall in its determination show the basis of valuation of each class of stock and state separately any amounts included in respect of acclimatisation or hefting or of any other consideration or factor for which it has made special allowance.
(3) In a sheep stock valuation where the lease was entered into after 6th November 1946, the Land Court shall fix the value of the sheep stock in accordance—
(a) in the case of a valuation made in respect of a tenancy terminating at Whitsunday in any year, with Part I of Schedule 9 to this Act if the lease was entered into before 1st December 1986, otherwise with Part I of Schedule 10 to this Act; or
(b) in the case of a valuation made in respect of a tenancy terminating at Martinmas in any year, with the provisions of Part II of Schedule 9 to this Act, if the lease was entered into before 1st December 1986, otherwise with Part II of Schedule 10 to this Act,
and subsection (2) above shall apply in such a case as if for the words from “show the basis” to the end of the subsection there were substituted the words “ state separately the particulars set forth in Part III of Schedule 9 (or, as the case may be, Schedule 10) to this Act ”.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) The Secretary of State may, by order made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament, vary the provisions of Schedule 10 to this Act, in relation to sheep stock valuations under leases entered into on or after the date of commencement of the order.
(1) Where any question as to the value of any sheep stock has been submitted for determination to the Land Court or, by virtue of section 61(1) of this Act, to an arbiter, the outgoing tenant shall, not less than 28 days before the determination of the question, submit to the Court or to the arbiter, as the case may be—
(a) a statement of the sales of sheep from such stock—
(i) in the case of a valuation made in respect of a tenancy terminating at Whitsunday during the preceding three years; or
(ii) in the case of a valuation made in respect of a tenancy terminating at Martinmas during the current year and in each of the two preceding years; and
(b) such sale-notes and other evidence as may be required by the Court or the arbiter to vouch the accuracy of such statement.
(2) Any document submitted by the outgoing tenant in pursuance of this section shall be open to inspection by the other party to the valuation proceedings.
In sections 68 to 71 of this Act—
(a) “agricultural holding” means a piece of land held by a tenant which is wholly or in part pastoral, and which is not let to the tenant during and in connection with his continuance in any office, appointment, or employment held under the landlord;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73 Power of Secretary of State to vary Schedules 5 and 6.
(1) The Secretary of State may, after consultation with persons appearing to him to represent the interests of landlords and tenants of agricultural holdings, by order vary the provisions of Schedules 5 and 6 to this Act.
(2) An order under this section may make such provision as to the operation of this Act in relation to tenancies current when the order takes effect as appears to the Secretary of State to be just having regard to the variation of the said Schedules effected by the order.
(3) Nothing in any order made under this section shall affect the right of a tenant to claim, in respect of an improvement made or begun before the date on which such order comes into force, any compensation to which, but for the making of the order, he would have been entitled.
(4) Orders under this section shall be made by statutory instrument which shall be of no effect unless approved by resolution of each House of Parliament.
74 Power of limited owners to give consents, etc..
The landlord of an agricultural holding, whatever may be his ... interest in the holding, may for the purposes of this Act give any consent, make any agreement, or do or have done to him any act which he might give or make or do or have done to him if he were the owner of the ... holding.
75 Power of tenant and landlord to obtain charge on holding.
(1) Where any sum has become payable to the tenant of an agricultural holding in respect of compensation by the landlord and the landlord has failed to discharge his liability therefor within one month after the date on which the sum became payable, the Secretary of State may, on the application of the tenant and after giving not less than 14 days’ notice of his intention so to do to the landlord, create, where the landlord is the owner of the ... holding, a charge on the holding, or where the landlord is the lessee of the holding under a lease recorded or registered under the Registration of Leases (Scotland) Act 1857 a charge on the lease for the payment of the sum due.
(2) For the purpose of creating a charge of a kind referred to in subsection (1) above, the Secretary of State may make in favour of the tenant a charging order charging and burdening the holding or the lease, as the case may be, with an annuity to repay the sum due together with the expenses of obtaining the charging order and recording it in the General Register of Sasines or registering it in the Land Register of Scotland.
(3) Where the landlord of an agricultural holding, not being the owner of the ... holding, has paid to the tenant of the holding the amount due to him under this Act, or under custom or agreement, or otherwise, in respect of compensation for an improvement or in respect of compensation for disturbance, or has himself defrayed the cost of an improvement proposed to be executed by the tenant, the Secretary of State may, on the application of the landlord and after giving not less than 14 days notice to the ... owner of the holding, make in favour of the landlord a charging order charging and burdening the holding with an annuity to repay the amount of the compensation or of the cost of the improvement, as the case may be, together with the expenses of obtaining the charging order and recording it in the General Register of Sasines or registering it in the Land Register of Scotland.
(4) Section 65(2), (4) and (6) to (10) of the Water (Scotland) Act 1980 shall, with the following and any other necessary modifications, apply to any such charging order as is mentioned in subsection (2) or (3) above, that is to say—
(a) for any reference to an islands or district council there shall be substituted a reference to the Secretary of State;
(b) for any reference to the period of 30 years there shall be substituted—
(i) where subsection (1) above applies, a reference to such period (not exceeding 30 years) as the Secretary of State may determine;
(ii) in the case of a charging order made in respect of compensation for, or of the cost of, an improvement, a reference to the period within which the improvement will, in the opinion of the Secretary of State, have become exhausted;
(c) for references to Part V of the said Act of 1980 there shall be substituted references to this Act.
(5) Where subsection (3) above applies, an annuity constituted a charge by a charging order recorded in the General Register of Sasines or registered in the Land Register of Scotland shall be a charge on the holding specified in the order and shall rank after all prior charges heritably secured thereon.
(6) The creation of a charge on a holding under this section shall not be deemed to be a contravention of any prohibition against charging or burdening contained in the deed or instrument under which the holding is held.
76 Power of land improvement companies to advance money.
Any company incorporated by Parliament or formed and registered under the Companies Act 2006 and having power to advance money for the improvement of land, or for the cultivation and farming of land, may make an advance of money upon a charging order duly made and recorded or registered under this Act, on such terms and conditions as may be agreed upon between the company and the person entitled to the order.
Where the landlord or the tenant of an agricultural holding is a pupil or a minor or is of unsound mind, not having a tutor, curator or other guardian, the sheriff, on the application of any person interested, may appoint to him, for the purposes of this Act, a tutor or a curator, and may recall the appointment and appoint another tutor or curator if and as occasion requires.
It shall be no objection to any consent in writing or agreement in writing under this Act signed by the parties thereto or by any persons authorised by them that the consent or agreement has not been executed in accordance with the enactments regulating the execution of deeds in Scotland.