Education Reform Act 1988

201Wrongful disposals

(1)This section applies where a local education authority have made any disposal to which section 137 of this Act applies in contravention of that section (referred to below in this section as a wrongful disposal).

(2)Where a wrongful disposal consists in entering into a contract to dispose of any land or to grant or dispose of any interest in land, the Education Assets Board may by a notice in writing served on the other party to the contract repudiate the contract at any time before the conveyance or grant of the land or interest in land to which it relates is completed or executed.

(3)Where a wrongful disposal consists in granting an option to acquire any land or any interest in land, the Education Assets Board may by a notice in writing served on the option holder repudiate the option at any time before it is exercised.

(4)A repudiation under subsection (2) or (3) above shall have effect as if made by the local education authority concerned.

(5)Where a wrongful disposal consists in granting or disposing of any interest in land (whether or not in pursuance of any earlier disposal of a description falling within subsection (2) or (3) above)—

(a)the Education Assets Board may be authorised by the Secretary of State to purchase compulsorily the interest in land which was the subject of the disposal; and

(b)whether or not the Education Assets Board is so authorised, any sums which, apart from this provision, would fall to be included by reference to that disposal in the capital receipts of the local education authority concerned for the purposes of Part VIII of the [1980 c. 65.] Local Government, Planning and Land Act 1980 shall not be so included.

(6)The [1981 c. 67.] Acquisition of Land Act 1981 shall apply in relation to the compulsory purchase of land under subsection (5) above as if references in sections 12 and 13 of that Act to every owner of the land included references to the local education authority concerned.

(7)On completion of a compulsory purchase under that subsection of any interest in land, the Education Assets Board shall convey that interest to the appropriate transferee.

(8)In subsection (7) above, “the appropriate transferee” means—

(a)where the interest disposed of, or the land in which the interest was granted, was—

(i)used or held by the local education authority concerned for the purposes of an institution falling within section 121(2) of this Act; or

(ii)obtained by that authority for the purpose of being so used or held;

the higher education corporation established under this Act to conduct that institution; and

(b)where the interest disposed of, or the land in which the interest was granted, was—

(i)so used or held for the purposes of an institution falling within section 129(3) of this Act; or

(ii)obtained by the authority concerned for the purpose of being so used or held;

the appropriate transferee within the meaning of section 130(2) of this Act in relation to that institution.

(9)Where the Education Assets Board acquire any interest in land by a compulsory purchase under subsection (5) above the Board shall be entitled to recover from the local education authority concerned an amount equal to the aggregate of—

(a)the amount of compensation agreed or awarded in respect of that purchase, together with any interest payable by the Board in respect of that compensation in accordance with section 11 of the [1965 c. 56.] Compulsory Purchase Act 1965; and

(b)the amount of the costs and expenses incurred by the Board in connection with the making of the compulsory purchase order.