(1)This section has effect where the person in occupation of an agricultural holding, being a person having no greater interest therein than as tenant for a year or from year to year, is served with a notice to quit the holding, and—
(a)the notice is served after an acquiring authority have served notice to treat on the landlord of the holding or, being an authority possessing compulsory purchase powers, have agreed to acquire his interest in the holding; and
(b)either—
(i)subsection (1) of section 25 of the [1949 c. 75.] Agricultural Holdings (Scotland) Act 1949 does not apply to the notice by virtue of subsection (2)(c) of that section (land required for non-agricultural use for which planning permision has been granted, etc.); or
(ii)the Scottish Land Court have consented to the operation of the notice and stated in the reasons for their decision that they are satisfied as to the matter mentioned in section 26(1)(e) of that Act (land required for non-agricultural use not falling within section 25(2)(c)).
(2)If the person served with the notice to quit elects that this subsection shall apply to the notice and gives up possession of the holding to the acquiring authority on or before the date on which his tenancy terminates in accordance with the notice—
(a)section 114 of the [1845 c. 19.] Lands Clauses Consolidation (Scotland) Act 1845 (compensation for tenants from year to year, etc.) and section 12 of the [1968 c. 34.] Agriculture (Miscellaneous Provisions) Act 1968 shall have effect as if the notice to quit had not been served and the acquiring authority had taken possession of the holding in pursuance of a notice of entry under paragraph 3 of Schedule 2 to the [1947 c. 42.] Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 on the day before that on which the tenancy terminates in accordance with the notice to quit; and
(b)the provisions of the Agricultural Holdings (Scotland) Act 1949 relating to compensation to a tenant on the termination of his tenancy and sections 9 and 15(3) of the [1968 c. 34.] Agriculture (Miscellaneous Provisions) Act 1968 (additional payment and compensation in cases of notice to quit) shall not have effect in relation to the termination of the tenancy by reason of the notice to quit.
(3)No election under subsection (2) above shall be made or, if already made, continue to have effect in relation to any land (whether the whole or part of the land to which the notice to quit relates) if, before the expiration of that notice, an acquiring authority take possession of that land in pursuance of an enactment providing for the taking of possession of land compulsorily.
(4)Any election under subsection (2) above shall be made by notice in writing served on the acquiring authority not later than the date on which possession of the holding is given up.
(5)This section shall have effect in relation to a notice to quit part of an agricultural holding as it has effect in relation to a notice to quit an entire holding and references to a holding and the termination of the tenancy shall be construed accordingly.
(6)A person served with a notice to quit part of an agricultural holding shall not be entitled, in relation to that notice, both to make an election under this section and to give a counter-notice under section 33 of the [1949 c. 75.] Agricultural Holdings (Scotland) Act 1949 (tenant's right to treat notice to quit part of holding as notice to quit entire holding).
(7)The reference in subsection (1)(a) above to a notice to treat served by an acquiring authority includes a reference to a notice to treat deemed to have been so served under any of the provisions mentioned in section 49(5) above.
(8)This section and section 57 below shall have effect in relation 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) as it has effect in relation to a notice to quit as if, in this section, subsections (1)(b) and (6) were omitted; and references in this section to the termination of the tenancy shall be construed accordingly.
(9)This section shall not apply where the person in occupation of an agricultural holding is a crofter, landholder or statutory small tenant.