Meaning of “agricultural holding”S

1 Meaning of “agricultural holding.”S

(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 M1 Agriculture (Scotland) Act, 1948, is agricultural land within the meaning of that Act.

Provisions as to leasesS

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

(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:

(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.S

(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.S

(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.S

(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.

F1(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.S

(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. S

(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. [F2For the purposes of this subsection the rent properly payable in respect of a holding shall [F3normally] 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 [F4subsection (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.]

[F5(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 [F6subsection (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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F7

(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 [F6subsection (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 [F8three] 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 . . . F9

(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. S

(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 M2 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:

(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 M3 Agricultural Holdings (Scotland) Act, 1923, or section nine of the M4 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 M5 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.

[F109(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.S

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.

Miscellaneous provisions affecting the relationship of landlord and tenantS

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

(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.S

(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 [F11determined 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 M6Agriculture (Scotland) Act, 1948, or under section nine of this Act [F12or 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.S

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. S

(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. S

(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 [F1312 pence per hectare] of the area over which it extends:

(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.S

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.S

(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.

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.S

(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. S

[F14(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 M7 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 [F15with 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.

[F16(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 M8 Succession (Scotland) Act 1964.]

[F1721 Right of landlord to object to acquirer of lease.S

(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 M9 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.S

(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.S

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.

Provisions as to notices to quitS

24 Provisions as to giving of notices to quit.S

(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 M10 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 M11 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 M12 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 [F18(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. S

(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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F19

(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 [F20and 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.

[F21(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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F22

26 Provisions as to consents for purposes of preceding section. S

[F23(1)[F24Except 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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F25

(5)Where . . . F26the Land Court consents under the last foregoing section to the operation of a notice to quit . . . F26the Court may [F27, subject to section 26A(4) of this Act,] impose such conditions as appear to . . . F26the 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.

[F2826A Termination of tenancies acquired by succession.S

(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.]

[F2927(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.]

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.]

29 F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

[F3330 Penalty for breach of condition accompanying consent to notice to quit.S

(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.S

(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.S

(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 M13 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. S

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.S

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:

Compensation to tenant for disturbanceS

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

(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:

(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):

(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 . . . F35any . . . F35public 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 M14 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 M15 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.

Compensation to tenant, on termination of tenancy, for improvements begun before 1st November, 1948S

36 Application of sections 37 to 46.S

(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.S

(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:

(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.S

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.

39 Compensation for certain old improvements conditional on consent of landlord.S

(1)Compensation under this Act shall not be payable for a 1923 Act improvement specified in Part I of the Second Schedule to this Act or for a 1931 Act improvement specified in Part I of the Third Schedule thereto unless, before the carrying out thereof, the landlord consented in writing (whether unconditionally or upon terms as to compensation or otherwise agreed on between him and the tenant) to the carrying out thereof.

(2)Where the consent was given upon terms as to compensation agreed on as aforesaid, the compensation payable under the agreement shall be substituted for compensation under this Act.

40 Compensation for certain old improvements conditional on notice to landlord.S

(1)Compensation under this Act shall not be payable for a 1923 Act improvement specified in Part 11 of the Second Schedule to this Act unless the tenant, not more than three nor less than two months before he began to carry out the improvement, gave to the landlord notice in writing under section three of the Agricultural Holdings (Scotland) Act, 1923, of his intention to carry out the improvement and of the manner in which he proposed to carry it out, and either—

(a)the landlord and the tenant agreed on the terms as to compensation or otherwise on which the improvement was to be carried out; or

(b)where no such agreement was made and the tenant did not withdraw the notice, the landlord failed to exercise the right conferred on him by that section to carry out the improvement himself within a reasonable time:

Provided that this subsection shall not have effect if the landlord and the tenant agreed, by the lease or otherwise, to dispense with notice under the said section three.

(2)Compensation under this Act shall not be payable for a 1931 Act improvement specified in Part 11 of the Third Schedule to this Act unless the tenant, not more than six months nor less than three months before he began to carry out the improvement, gave to the landlord notice in writing under section three of the Agricultural Holdings (Scotland) Act, 1923, of his intention to carry out the improvement and of the manner in which he proposed to carry it out and either—

(a)the landlord and the tenant agreed on the terms as to compensation or otherwise on which the improvement was to be carried out; or

(b)where no such agreement was made and the tenant did not withdraw the notice, the landlord failed to exercise the right conferred on him by that section to carry out the improvement himself within a reasonable time; or

(c)in a case where the landlord gave notice of objection and the matter was, in pursuance of subsection (2) of section twenty-eight of the M16 Small Landholders and Agricultural Holdings (Scotland) Act, 1931, referred for determination to the appropriate authority, that authority was satisfied that the improvement ought to be carried out and the improvement was carried out in accordance with the directions (if any) given by that authority as to the manner in which the improvement was to be carried out:

Provided that this subsection shall not have effect—

(i)if the landlord and the tenant agreed, by the lease or otherwise, to dispense with notice under the said section three; or

(ii)where the improvement consists of drainage which was carried out by the tenant for the purpose of complying with directions given under Defence Regulations, but which he was not required to carry out by the terms of the tenancy.

(3)If the landlord and the tenant agreed (whether after notice was given under the said section three or by an agreement to dispense with notice under that section) on the terms as to compensation on which the improvement was to be carried out, the compensation payable under the agreement shall be substituted for compensation under this Act.

(4)In this section the expression “the appropriate authority” means, in relation to the period before the fourth day of September, nineteen hundred and thirty-nine, the Department of Agriculture for Scotland, and in relation to the period commencing on that day, the Secretary of State.

41 Conditions attaching to right to compensation for repairs to buildings.S

Compensation under this Act shall not be payable in respect of any such repairs as are specified in paragraph 29 of the Second Schedule to this Act or in paragraph 29 of the Third Schedule thereto unless, before beginning to execute any such repairs, the tenant gave to the landlord notice in writing under paragraph (29) of the First Schedule to the M17 Agricultural Holdings (Scotland) Act, 1923, or under paragraph (30) of the First Schedule to the Small Landholders and Agricultural Holdings (Scotland) Act, 1931, of his intention to execute the repairs, together with particulars thereof, and the landlord failed to exercise the right conferred on him by the said paragraph (29) or the said paragraph (30) to execute the repairs himself within a reasonable time after receiving the notice.

42 Agreements as to compensation for old improvements specified in Part III of Second or Third Schedule.S

where an agreement in writing entered into before the first day of January, nineteen hundred and twenty-one, secures to the tenant for an old improvement specified in Part III of the Second Schedule to this Act or in Part III of the Third Schedule thereto fair and reasonable compensation, having regard to the circumstances existing at the time of the making of the agreement, the compensation so secured shall as respects that improvement be substituted for compensation under this Act.

43 Compensation in respect of temporary pasture.S

The tenant shall be entitled to compensation under this Act in respect of the 1931 Act improvement specified in paragraph 28 of the Third Schedule to this Act, being the laying down of temporary pasture in accordance with that paragraph, notwithstanding that the laying down or the leaving at the termination of the tenancy of such pasture was in contravention of the terms of the lease or of any agreement made by the tenant respecting the method of cropping the arable lands; but in ascertaining the amount of the compensation the arbiter shall take into account any injury to, or deterioration of, the holding due to the contravention except in so far as the landlord has recovered damages in respect of such injury or deterioration.

44 Reduction in amount of, or exclusion of right to, compensation for old improvements in certain cases.S

(1)In the ascertainment of the amount of the compensation payable under this Act to the tenant in respect of an old improvement, there shall be taken into account—

(a)any benefit which the landlord has given or allowed to the tenant in consideration of the tenant carrying out the improvement, whether expressly stated in the lease to be so given or allowed or not; and

(b)as respects manuring, the value of the manure required by the lease or by custom to be returned to the holding in respect of any crops grown on and sold off or removed from the holding within the last two years of the tenancy or other less time for which the tenancy has endured, not exceeding the value of the manure which would have been produced by the consumption on the holding of the crops so sold off or removed.

(2)In assessing the amount of any compensation payable to the tenant, whether under this Act or under custom or agreement, by reason of the improvement of the holding by the addition thereto of lime in respect of which a contribution has been made under Part I of the M18 Agriculture Act, 1937, the contribution shall be taken into account as if it had been a benefit allowed to the tenant in consideration of his carrying out the improvement, and the compensation shall be reduced accordingly.

(3)In assessing the amount of any compensation payable under this Act to the tenant in respect of such an improvement as is mentioned in paragraph (ii) of the proviso to subsection (2) of section forty of this Act, if it is shown to the satisfaction of the person assessing the compensation that the improvement consisted of, or was wholly or in part the result of or incidental to, operations in respect of which any grant has been or is to be made to the tenant out of moneys provided by Parliament, the grant shall be taken into account as if it had been a benefit allowed to the tenant in consideration of his carrying out the improvement, and the compensation shall be reduced to such extent as that person considers appropriate.

(4)Notwithstanding anything in the foregoing provisions of this Act, the tenant shall not be entitled to compensation thereunder for an old improvement carried out on land which, at the time the improvement was begun, was not a holding within the meaning of the M19 Agricultural Holdings (Scotland) Act, 1923, as originally enacted, and would not have fallen to be treated as such a holding by virtue of section thirty-three of that Act.

(5)In this section the expression “manuring” means any of the improvements specified in paragraphs 25 to 27 of the Second Schedule to this Act or in paragraphs 25 to 27 of the Third Schedule thereto.

45 Provision as to change of tenancy.S

Where the tenant has remained in the holding during two or more tenancies, he shall not be deprived of his right to compensation under this Act for old improvements by reason only that the improvements were not carried out during the tenancy on the termination of which he quits the holding.

46 Right to compensation for old improvements of tenant who has paid compensation therefor to outgoing tenant.S

Where, on entering into occupation of the holding, the tenant, with the consent in writing of the landlord and in pursuance of an agreement made before the first day of November, nineteen hundred and forty-eight, paid to an outgoing tenant any compensation payable under or in pursuance of this Act or the Agricultural Holdings (Scotland) Acts, 1923 to 1948, in respect of the whole or part of an old improvement, or, with the like consent and in pursuance of an agreement in writing made after that day, paid to an outgoing tenant any compensation payable as aforesaid in respect of the whole or part of an old improvement of the kind specified in Part 111 of the First Schedule to this Act, he shall be entitled, on quitting the holding, to claim compensation for the improvement or part in like manner, if at all, as the outgoing tenant would have been entitled if the outgoing tenant had remained tenant of the holding and quitted it at the time at which the tenant quits it.

Compensation to tenant, on termination of tenancy, for improvements begun on or after Ist November, 1948S

47 Application of sections 48 to 55.S

(1)The provisions of the eight next following sections shall have effect with respect to the rights of the tenant of an agricultural holding with respect to compensation for improvements specified in the First Schedule to this Act carried out on the holding, being improvements begun on or after the first day of November, nineteen hundred and forty-eight; and the said provisions shall have effect whether the tenant entered into occupation of the holding before or on or after the said first day of November.

(2)An improvement falling within the foregoing subsection is in this Act referred to as “a new improvement”.

48 Tenant’s right to compensation for new improvements.S

(1)The tenant shall, subject to the provisions of this Act, be entitled at the termination of the tenancy, on quitting the holding, to obtain from the landlord compensation for a new improvement carried out by the tenant:

(2)Nothing in this section shall prejudice the right of a tenant to claim any compensation to which he may be entitled under an agreement in writing in lieu of any compensation provided by this section.

49 Amount of compensation for new improvements.S

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

(2)In the ascertainment of the amount of the compensation payable under this Act for a new improvement there shall be taken into account—

(a)any benefit which under an agreement in writing the landlord has given or allowed to the tenant in consideration of the tenant carrying out the improvement; and

(b)any grant out of moneys provided by Parliament which has been or will be made to the tenant in respect of the improvement.

50 Compensation for Sch. 1, Pt. I, improvements conditional on consent of landlord.S

(1)Compensation under this Act shall not be payable for a new improvement specified in Part I of the First Schedule to this Act unless, before the carrying out thereof, the landlord has consented in writing (whether unconditionally or upon terms as to compensation or otherwise agreed on between him and the tenant) to the carrying out thereof.

(2)Where the consent is given upon terms as to compensation agreed on as aforesaid, the compensation payable under the agreement shall be substituted for compensation under this Act.

51 Compensation for Sch. 1, Pt. II, improvements conditional on notice to landlord. S

(1)Compensation under this Act shall not be payable for a new improvement specified in Part II of the First Schedule to this Act unless the tenant has, not less than three months before he began to carry out the improvement, given to the landlord notice in writing of his intention to carry out the improvement and of the manner in which he proposes to carry it out.

(2)On such notice being given, the landlord and the tenant may enter into an agreement in writing with respect to the terms as to compensation or otherwise on which the improvement is to be carried out, and if any such agreement is entered into, the compensation payable under the agreement shall be substituted for compensation under this Act.

(3)The landlord and the tenant may, by the lease or otherwise, enter into an agreement in writing to dispense with any notice under subsection (1) of this section; and an agreement so entered into may provide for anything for which an agreement entered into under the last foregoing subsection may provide, and in such case shall be of the like validity and effect as such last-mentioned agreement.

52 Compensation for Sch. 1, Pt. II, improvements conditional on approval of Secretary of State in certain cases. S

(1)Subject to the provisions of this section, compensation under this Act shall not be payable in respect of a new improvement specified in Part 11 of the First Schedule to this Act if, within one month after receiving notice under subsection (1) of the last foregoing section from the tenant of his intention to carry out the improvement, the landlord gives notice in writing to the tenant that he objects to the carrying out of the improvement or to the manner in which the tenant proposes to carry it out.

(2)Where notice of objection has been given as aforesaid, the tenant may . . . F36apply to the Secretary of State for approval of the carrying out of the improvement, and on any such application the Secretary of State may . . . F36approve the carrying out of the improvement either unconditionally or upon such terms, whether as to reduction of the compensation which would be payable if the Secretary of State approved unconditionally or as to other matters, as appear to the Secretary of State to be just, or may withhold his approval . . . F36

(3)If, on an application under the last foregoing subsection, the Secretary of State grants his approval, the landlord may, within one month after receiving notice of the decision of the Secretary of State, serve notice in writing on the tenant undertaking to carry out the improvement himself.

(4)Where the Secretary of State grants his approval, then if either—

(a)no notice is served by the landlord under the last foregoing subsection, or

(b)such a notice is served but, on an application made by the tenant in that behalf, the Secretary of State, . . . F36determines that the landlord has failed to carry out the improvement within a reasonable time,

the tenant may carry out the improvement and shall be entitled to compensation under this Act in respect thereof as if notice of objection had not been given by the landlord, and any terms subject to which the approval was given shall have effect as if they were contained in an agreement in writing between the landlord and the tenant.

53 Compensation in respect of temporary pasture.S

The tenant shall be entitled to compensation under this Act in respect of the new improvement specified in paragraph 33 of the First Schedule to this Act, being the laying down of temporary pasture in accordance with that paragraph, notwithstanding that the laying down or the leaving at the termination of the tenancy of such pasture is in contravention of the terms of the lease or of any agreement made by the tenant respecting the method of cropping the arable lands; but in ascertaining the amount of the compensation the arbiter shall take into account any injury to, or deterioration of, the holding due to the contravention except in so far as the landlord has recovered damages in respect of such injury or deterioration.

54 Provision as to change of tenancy.S

Where the tenant has remained in the holding during two or more tenancies, he shall not be deprived of his right to compensation under this Act for new improvements by reason only that the improvements were not carried out during the tenancy on the termination of which he quits the holding.

55 Right to compensation for new improvements of tenant who has paid compensation therefor to outgoing tenant.S

(1)Where, on entering into occupation of the holding the tenant, in pursuance of such an agreement as is mentioned in subsection (2) of section eleven of this Act, paid to an outgoing tenant or refunded to his landlord 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 a new improvement, he shall be entitled on quitting the holding to claim compensation in respect of the improvement or part in like manner, if at all, as the outgoing tenant would have been entitled if he had remained tenant of the holding and quitted it at the time at which the tenant quits it.

(2)Where, in a case not falling within the foregoing subsection or section eleven of this Act, the tenant, on entering into occupation of the holding, paid to his landlord any amount in respect of the whole or part of a new improvement, he shall, subject to any agreement in writing between the landlord and the tenant, be entitled on quitting the holding to claim compensation in respect of the improvement or part in like manner, if at all, as he would have been entitled if he had been tenant of the holding at the time when the improvement was carried out and the improvement or part had been carried out by him.

Compensation to tenant, on termination of tenancy, for continuous adoption of special standardS

56 Compensation for continuous adoption of special standard of farming.S

(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 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, 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 standard or system:

(2)In assessing the compensation to be paid under this section due allowance shall be made for any compensation agreed or awarded to be paid to the tenant for any old or new improvement which has caused or contributed to the benefit.

(3)Nothing in this section shall entitle a tenant to recover, for an old or a new improvement or an improvement to which the provisions of this Act relating to market gardens apply, any compensation which he would not be entitled to recover apart from this section.

Compensation to landlord, on termination of tenancy, for deterioration of holdingS

57 Compensation to landlord for deterioration, etc. of particular parts of holding.S

(1)The landlord of an agricultural holding shall be entitled to recover from the tenant of the holding, on the tenant’s quitting the holding on the termination of the tenancy, compensation in respect of any dilapidation or deterioration of, or damage to, any part of the holding or anything in or on the holding, caused by non-fulfilment by the tenant of his responsibilities to farm in accordance with the rules of good husbandry.

(2)The amount of the compensation payable under the foregoing subsection shall be 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) of this section, 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)compensation shall not be claimed in respect of any one holding both under such a lease and under the said subsection (1);

and for the purposes of paragraph (b) of this subsection any claim under subsection (1) of section six of this Act shall be disregarded

58 Compensation to landlord for general deterioration of holding.S

Where, on the quitting of an agricultural holding by a tenant thereof on the termination of the tenancy, the landlord shows that the value of the holding generally has been reduced, whether by reason of any such dilapidation, deterioration or damage as is mentioned in subsection (1) of the last foregoing section or otherwise by non-fulfilment by the tenant of his responsibilities to farm in accordance with the rules of good husbandry, the landlord shall be entitled to recover from the tenant compensation therefor, in so far as the landlord is not compensated therefor under subsection (1) of that section or in accordance with subsection (3) thereof, of an amount equal to the decrease attributable thereto in the value of the holding.

59 Provisions supplementary to s. 57 and s. 58.S

(1)Compensation shall not be recoverable under subsection (1) of section fifty-seven of this Act or under section fifty-eight thereof unless the landlord has, not later than three months before the termination of the tenancy, given notice in writing to the tenant of his intention to claim compensation thereunder.

(2)Compensation shall not be recoverable—

(a)under subsection (1) of section fifty-seven of this Act or under section fifty-eight thereof in any case where the lease was entered into after the thirty-first day of July, nineteen hundred and thirty-one, or

(b)under and in accordance with any lease entered into on or after the first day of November, nineteen hundred and forty-eight,

unless during the occupancy of the tenant a record of the condition of the fixed equipment on, and the cultivation of, the holding has been made under section seventeen of this Act, or 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 his occupancy, before the date of the first such record:

(3)Where the tenant has remained in his holding during two or more tenancies, his landlord shall not be deprived of his right to compensation under section fifty-seven or section fifty-eight of this Act in respect of any dilapidation, deterioration or damage by reason only that the tenancy during which an act or omission occurred which in whole or in part caused the dilapidation, deterioration or damage was a tenancy other than the tenancy at the termination of which the tenant quits the holding.

Supplementary provisions with respect to compensationS

60 Compensation provisions of this Act to apply to parts of holdings in certain cases.S

(1)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 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)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 (in this subsection referred to as “non-statutory land”) which, owing to the nature of the buildings thereon or the use to which it is put, would not, if it had been separately let, be an agricultural holding within the meaning of this Act, 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 non-statutory land as if that part were a separate agricultural holding.

61 Determination of claims for compensation where holding is divided. S

Where an agricultural holding has become vested in more than one person in several parts 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 bim under this Act shall be determined as if the holding had not been divided; and the arbiter 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 award caused by the apportionment shall be directed by the arbiter to be paid by those persons in such proportions as he shall determine.

62 Adjustment of compensation in respect of ploughing grants.S

In assessing the amount of compensation payable, whether under this Act or under custom or agreement, to the tenant of an agricultural holding comprising land in respect of which a payment in respect of a ploughing grant under Part IV of the M20 Agricultural Development Act, 1939, has been made to the tenant, or has been or is to be applied for by him, if it is shown to the satisfaction of the person assessing the compensation that the improvement or cultivations in respect of which the compensation is claimed was wholly or in part the result of or incidental to the operations by virtue of which the land became eligible for the grant, the grant shall be taken into account as if it had been a benefit allowed to the tenant in consideration of his carrying out the improvement or cultivations, and the compensation shall be reduced to such extent as that person considers appropriate.

63 Compensation not to be payable for things done in compliance with this Act.S

(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 an order under [F37paragraph (b) of subsection (2) of section nine] 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 that section, the value [F38per hectare] of any tenant’s pasture comprised in the holding shall be taken not to exceed the average value [F38per hectare] of the whole of the tenant’s pasture comprised in the holding on the termination of the tenancy.

In this subsection the expression “tenant’s pasture” means pasture laid down at the expense of the tenant or paid for by the tenant on entering the holding.

(2)The tenant of an agricultural holding shall not be entitled to any compensation for an old improvement specified in Part III of the Second Schedule to this Act or in Part III of the Third Schedule thereto or a new improvement specified in Part III of the First Schedule thereto, being an improvement carried out for the purposes of the proviso to subsection (1) of section thirty-five of the M21 Agricultural Holdings (Scotland) Act, 1923, or of the proviso to subsection (1) of section twelve of this Act.

64 Extent to which compensation recoverable under agreements.S

(1)Save as expressly provided in this Act, in any case for which, apart from this section, the provisions of this Act provide for compensation a tenant or a landlord shall be entitled to compensation in accordance with these provisions and not otherwise, and shall be so entitled notwithstanding any agreement to the contrary:

(2)Nothing in the said provisions, apart from this section, shall be construed as disentitling a tenant or a landlord to compensation in any case for which the said provisions do not provide for compensation, but a claim for compensation in any such case as aforesaid shall not be enforceable except under an agreement in writing.

Special provisions affecting market gardens as regards compensation and fixturesS

65 Effect of agreement to let or treat an agricultural holding as a market garden.S

(1)In the case of an agricultural holding in respect of which it is agreed by an agreement in writing made on or after the first day of January, eighteen hundred and ninety-eight, that the holding shall be let or treated as a market garden—

(a)the provisions of this Act shall apply as if improvements of a kind specified in the Fourth Schedule thereto begun before the thirty-first day of July, nineteen hundred and thirty-one, were included among the improvements specified in Part III of the Second Schedule thereto, as if improvements of such a kind begun on or after that day and before the first day of November, nineteen hundred and forty-eight, were included among the improvements specified in Part III of the Third Schedule thereto, and as if improvements of such a kind begun on or after the said first day of November were included among the improvements specified in Part III of the First Schedule thereto;

(b)section fourteen of this Act shall extend to every fixture or building affixed or erected by the tenant to or upon the holding or acquired by him since the thirty-first day of December, nineteen hundred, for the purposes of his trade or business as a market gardener;

(c)it shall be lawful for the tenant to remove all fruit trees and fruit bushes planted by him on the holding and not permanently set out, but if the tenant does not remove such fruit trees and fruit bushes before the termination of his tenancy they shall remain the property of the landlord and the tenant shall not be entitled to any compensation in respect thereof; and

(d)the right of an incoming tenant to claim compensation in respect of the whole or part of an improvement which he has purchased may be exercised although the landlord has not consented in writing to the purchase.

(2)Where under a lease current on the first day of January, eighteen hundred and ninety-eight, an agricultural holding was at that date in use or cultivation as a market garden with the knowledge of the landlord, and the tenant thereof had then carried out thereon, without having received previously to the carrying out thereof a written notice of dissent from the landlord, an improvement of the kind specified in the Fourth Schedule to this Act (other than one consisting of such an alteration of a building as did not constitute an enlargement thereof) the provisions of this section shall apply in respect of the holding as if it had been agreed in writing after that date that the holding should be let or treated as a market garden, so however that the improvements in respect of which compensation is payable under those provisions as so applied shall include improvements carried out before as well as improvements carried out after that date:

(3)Where the land to which such agreement relates or so used and cultivated, consists of part of an agricultural holding only, this section shall apply as if that part were a separate holding.

(4)Nothing in this section shall confer a right to compensation for the alteration of a building (not being an alteration constituting an enlargement of the building) where the alteration was begun before the first day of November, nineteen hundred and forty eight.

66 Power of Secretary of State in default of agreement to treat an agricultural holding as a market garden. S

(1)Subject to the provisions of this section, where the tenant of an agricultural holding intimates to the landlord in writing his desire to carry out on the holding or any part thereof an improvement specified in the Fourth Schedule to this Act, and the landlord refuses, or within a reasonable time fails, to agree in writing that the holding, or that part thereof, shall be treated as a market garden, the Secretary of State may, on the application of the tenant . . . F39and after being satisfied that the holding or that part thereof is suitable for the purposes of market gardening, direct that the last foregoing section shall, either in respect of all the improvements specified in the said Fourth Schedule or in respect of some only of those improvements, apply to the holding or to that part thereof, and the said section shall apply accordingly as respects any improvement carried out after the date on which the direction is given.

(2)Where a direction is given under the foregoing subsection, then, if the tenancy is terminated by notice to quit given by the tenant or by reason of the tenant becoming notour bankrupt or executing a trust deed for behoof of his creditors, the tenant shall not be entitled to compensation in respect of improvements specified in the direction unless the tenant not later than one month after the date on which the notice to quit is given or the date of the bankruptcy or the execution of the trust deed, as the case may be, or such later date as may be agreed, produces to the landlord an offer in writing by a substantial and otherwise suitable person (being an offer which is to hold good for a period of three months from the date on which it is produced) to accept a tenancy of the holding from the termination of the existing tenancy thereof, and on the terms and conditions of that tenancy so far as applicable, and, subject as hereinafter provided, to pay to the outgoing tenant all compensation payable under this Act or under the lease, and the landlord fails to accept the offer within three months after the production thereof.

(3)If the landlord accepts any such offer as aforesaid, the incoming tenant shall pay to the landlord on demand all sums payable to him by the outgoing tenant on the termination of the tenancy in respect of rent or breach of contract or otherwise in respect of the holding, and any amount so paid may, subject to any agreement between the outgoing tenant and incoming tenant, be deducted by the incoming tenant from any compensation payable by him to the outgoing tenant.

(4)A direction under subsection (1) of this section may be given subject to such conditions, if any, for the protection of the landlord as the Secretary of State may think fit to attach to the direction, and, without prejudice to the generality of this subsection, where the direction relates to part only of the holding, the direction may, on the application of the landlord, be given subject to the condition that the tenant shall consent to the division of the holding into two parts (one such part being the part to which the direction relates) to be held at rents agreed by the landlord and tenant or in default of agreement determined by arbitration, but otherwise on the same terms and conditions (so far as applicable) as those on which the holding is held.

(5)A new tenancy created by the acceptance of a tenant in accordance with the provisions of this section on the terms and conditions of the existing tenancy shall be deemed for the purposes of section seven of this Act not to be a new tenancy.

67 Agreements as to compensation relating to market gardens.S

(1)Where an agreement in writing secures to the tenant to of an agricultural holding for an improvement for which compensation is payable by virtue of either of the two last foregoing sections fair and reasonable compensation, having regard to the circumstances existing at the time of making the agreement, the compensation so secured 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 set out in subsections (2) and (3) of the last foregoing section.

Settlement of claims between landlord and tenant on termination of tenancyS

68 Settlement of claims by arbitration. S

(1)Without prejudice to any other provision of this Act, any claim of whatever nature by the tenant or the landlord of an agricultural holding against his landlord or his tenant, being a claim which arises—

(a)under this Act or any custom or agreement, and

(b)on or out of the termination of the tenancy of the holding or part thereof,

shall, subject to the provisions of this section, be determined by arbitration.

(2)Without prejudice to any other provision of this Act, no such claim as aforesaid shall be enforceable unless before the expiration of two months from the termination of the tenancy the claimant has served notice in writing on his landlord or his tenant, as the case may be, of his intention to make the claim.

A notice under this subsection 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.

(3)The landlord and the tenant may within the period of four months from the termination of the tenancy by agreement in writing settle any such claim as aforesaid, and the Secretary of State may upon the application of the landlord or the tenant made within that period extend the said period by two months and, on a second such application made during these two months, by a further two months.

(4)Where before the expiration of the said period and any extension thereof under the last foregoing subsection any such claim as aforesaid has not been settled, the claim shall cease to be enforceable unless before the expiration of one month from the end of the said period and any such extension, or within such longer time as the Secretary of State may in special circumstances allow, an arbiter has been appointed by agreement between the landlord and the tenant under the provisions of this Act in that behalf or an application for the appointment of an arbiter under those provisions has been made by the landlord or the tenant.

(5)Where a tenant lawfully remains in occupation of part of an agricultural holding after the termination of a tenancy, references in subsections (2) and (3) of this section to the termination thereof shall be construed as references to the termination of the occupation.

(6)This section shall not apply to a claim arising on or out of the termination of a tenancy before the first day of November, nineteen hundred and forty-eight.

Recovery of sums due under this ActS

69 Recovery of compensation and other sums due. S

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.

70 Power of tenant to obtain charge on holding in respect of compensation. S

(1)Where on or after the first day of November, nineteen hundred and forty-eight, 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 fourteen days’ notice of his intention so to do to the landlord, create, where the landlord is the absolute owner of the holding, a charge on the holding, or where the landlord is the lessee of the holding under a lease recorded under the M22 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 under this section for the payment of any sum due, 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 appropriate Register of Sasines; and the provisions of subsection (2) and subsections (4) to (10) of section [F4065] of the Water (Scotland) Act, [F401980], shall, with the following and any other necessary modifications, apply to any such charging order—

(a)for any reference to the [F41islands or district council] there shall be substituted a reference to the Secretary of State;

(b)for any reference to the period of thirty years there shall be substituted a reference to such period (not exceeding thirty years) as the Secretary of State may determine

(c)for references to [F41Part V] of the said Act of [F401980] there shall be substituted references to this Act.

(3)The creation of a charge on a holding or the lease of 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.

Supplementary provisionsS

71, 72. F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

73 Proceedings of the Land Court. S

The provisions of the Small Landholders (Scotland) Acts, 1886 to 1931, with regard to the Land Court shall, with any necessary modifications, apply for the purpose of the determination of any matter which they are required by or under this Act to determine, in like manner as those provisions apply for the purpose of the determination by the Land Court of matters referred to them under those Acts.

74 Matters to be referred to arbitration. S

Save as otherwise expressly provided in this Act, any question or difference of any kind whatsoever between the landlord and the tenant of an agricultural holding arising out of the tenancy or in connection with the holding (not being a question or difference as to liability for rent) shall, whether such question or difference arises during the currency or on the termination of the tenancy, be determined by arbitration.

75 Provisions as to arbitrations. S

(1)Any matter which by or under this Act, or by regulations made thereunder, or under the lease of an agricultural holding is required to be determined by arbitration shall, whether the matter arose before or after the passing of this Act, be determined, notwithstanding any agreement under the lease or otherwise providing for a different method of arbitration, by a single arbiter in accordance with the provisions of the Sixth Schedule to this Act, and the Arbitration (Scotland) Act, 1894, shall not apply to any such arbitration.

[F43(1A)An appeal by way of application by any party to an arbitration under section 7(1) of this Act (variation of rent) shall on any question of law or fact (including the amount of the award) lie to the Land Court against the award of any arbiter appointed by the Secretary of State or the Land Court:

(2)The Secretary of State may by rules make such provision as he thinks desirable for expediting, or reducing the expenses of, proceedings on arbitrations under this Act:

(3)The power conferred by the last foregoing subsection on the Secretary of State shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4)This section and the last foregoing section shall not apply to valuations of sheep stocks, dung, fallow, straw, crops, fences and other specific things the property of an out-going tenant, agreed under a lease to be taken over from him at the termination of a tenancy by the landlord or the incoming tenant, or to any questions which it may be necessary to determine in order to ascertain the sum to be paid in pursuance of such agreement, and that whether such valuations and questions are referred to arbitration under the lease or not.

76 Constitution of panel of arbiters, and provisions as to remuneration of arbiter. S

(1)Such number of persons as may be appointed by the Lord President of the Court of Session, after consultation with the Secretary of State, shall form a panel of persons from whom any arbiter appointed, otherwise than by agreement, for the purposes of an arbitration under and in accordance with the provisions of the Sixth Schedule to this Act shall be selected.

(2)The panel of arbiters constituted under the foregoing subsection shall be subject to revision by the Lord President of the Court of Session, after such consultation as aforesaid, at such intervals not exceeding five years, as the Lord President and the Secretary of State may from time to time agree.

(3)The remuneration of an arbiter appointed as aforesaid by the Secretary of State shall be such amount as is fixed by the Secretary of State, and the remuneration of an arbiter appointed by the parties to any such arbitration shall, in default of agreement between those parties and the arbiter, be such amount as, on the application of the arbiter or of either of the parties, is fixed by the auditor of the sheriff court, subject to appeal to the sheriff.

(4)The remuneration of an arbiter, when agreed or fixed under this section, shall be recoverable by the arbiter as a debt due from either of the parties to the arbitration, and any amount paid in respect of the remuneration of the arbiter by either of those parties in excess of the amount (if any) directed by the award to be paid by him in respect of the expenses of the award shall be recoverable from the other party to the arbitration.

77 Appointment of arbiter in cases to which the Secretary of State is a party. S

Where the Secretary of State is a party to any question or difference which under this Act is to be determined by arbitration or by an arbiter appointed in accordance with the provisions of this Act, the arbiter shall, in lieu of being appointed by the Secretary of State, be appointed by the Land Court, and the remuneration of the arbiter so appointed shall be such amount as may be fixed by the Land Court.

78 Determination of questions by Land Court in lieu of arbitration. S

Any question or difference between the landlord and the tenant of an agricultural holding which by or under this Act or under the lease is required to be determined by arbitration may, if the landlord and the tenant so agree, in lieu of being determined in pursuance of subsection (1) of section seventy-five of this Act be determined by the Land Court, and the Land Court shall, on the joint application of the landlord and the tenant, determine such question or difference accordingly.

79 Power of Secretary of State to vary First and Fourth Schedules to this Act.S

(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 the First and Fourth Schedules 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)An order under this section shall be embodied in a statutory instrument which shall be of no effect unless approved by resolution of each House of Parliament.

80 Power of limited owners to give consents, etc. S

The landlord of an agricultural holding, whatever may be Power of his estate or interest in the holding, may for the purposes of this limited owners Act give any consent, make any agreement, or do or have done to to him any act which he might give or make or do or have done to him if he were absolute owner of the holding.

81 Power of heir of entail to apply entailed moneys for improvements.S

The price of any entailed land sold under the provisions of the Entail Acts, when such price is entailed estate within the meaning of those Acts, may be applied by the heir of entail inrespect of the remaining portion of the entailed estate, or in respect of any other estate belonging to him and entailed upon the same series of heirs, in payment of any expenditure and expenses incurred by him in pursuance of this Act in carrying out or paying compensation for any old improvement specified in Part I or Part 11 of the Second or Third Schedule to this Act or any new improvement specified in Part I or Part II of the First Schedule thereto, or in discharge of any charge with which the estate is burdened in pursuance of this Act in respect of such an improvement.

82 Power of landlord to obtain charge on holding in respect of compensation, etc. paid by him. S

(1)Where on or after the first day of November, nineteen hundred and forty-eight, the landlord of an agricultural holding, not being the absolute 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 old or a new 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 fourteen days notice to the absolute 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 appropriate Register of Sasines; and the provisions of subsections (2) and (4) and of subsections (6) to (10) of section [F4465] of the M23 Water (Scotland) Act, [F441980], shall, with the following and any other necessary modifications, apply to any such charging order—

(a)for any reference to the [F45islands or district council] there shall be substituted a reference to the Secretary of State;

(b)for any reference to the period of thirty years there shall be substituted 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 [F45Part V] of the said Act of [F441980] there shall be substituted references to this Act.

(2)An annuity constituted a charge by a charging order recorded in the appropriate Register of Sasines shall be a charge on the holding specified in the order and shall rank after all prior charges heritably secured thereon.

(3)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 holdin is held.

83 Power of land improvement companies to advance money. S

Any company now or hereafter incorporated by Parliament or incorporated under the M24 Companies Act, 1948, 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 under this Act, on such terms and conditions as may be agreed upon between the company and the person entitled to the order.

84 Appointment of guardian to landlord or tenant in certain cases. S

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.

85 Validity of consents, etcS

lt 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.

Provisions as to Crown LandS

86 Application of Act to Crown land. S

(1)This Act shall apply to land belonging to His majesty in right of the Crown, subject to such modifications as may be prescribed; and for the purposes of this Act the Commissioners of Crown Lands or other the proper officer or body having charge of the land for the time being, or if there is no such officer or body, such person as His Majesty may appoint in writing under the Royal Sign Manual, shall represent His Majesty and shall be deemed to be the landlord.

(2)Without prejudice to the provisions of the foregoing subsection it is hereby declared that the provisions of this Act apply to land notwithstanding that the interest of the landlord or the tenant thereof belongs to a government department or is held on behalf of His Majesty for the purposes of any government department; but in their application to any land belonging, or an interest in which is held as aforesaid, the said provisions shall have effect subject to such modifications as may be prescribed.

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F46

87 Determination of matters relating to holdings of which the Secretary of State is landlord or tenant. S

(1)Any section of this Act under which any matter is referred to the decision of the Secretary of State shall, in its application to an agricultural holding of which the Secretary of State is himself the landlord or the tenant, have effect with the substitution of the Land Court for the Secretary of State, and any provision in any such section for an appeal to an arbiter from the decision of the Secretary of State shall not apply.

(2)The provisions of this Act shall, in their application to any arbitration with regard to an agricultural holding of which the Secretary of State is himself the landlord or the tenant, have effect with the substitution of the Land Court for the Secretary of State.

GeneralS

88 Expenses and receipts.S

(1)All expenses incurred by the Secretary of State under this Act shall be defrayed out of moneys provided by Parliament.

(2)All sums received by the Secretary of State under this Act, including sums received on his behalf by any person or body of persons exercising functions on behalf of the Secretary of State, shall be paid into the Exchequer.

89 Provisions as to entry and inspection.S

(1)Any person authorised by the Secretary of State in that behalf shall have power at all reasonable times to enter on and inspect any land for the purpose of determining whether, and if so in what manner, any of the powers conferred on the Secretary of State by this Act are to be exercised in relation to the land, or whether, and if so in what manner, any direction given under any such power has been complied with.

(2)Any person authorised by the Secretary of State who proposes to exercise any power of entry or inspection conferred by this Act shall, if so required, produce some duly authenticated document showing his authority to exercise the power.

(3)Admission to any land used for residential purposes shall not be demanded as of right in the exercise of any such power as aforesaid unless twenty-four hours notice of the intended entry has been given to the occupier of the land.

(4)Save as provided by the last foregoing subsection, admission to any land shall not be demanded as of right in the exercise of any such power as aforesaid unless notice has been given to the occupier of the land that it is proposed to enter during a period, specified in the notice, not exceeding fourteen days and beginning at least twenty-four hours after the giving of the notice and the entry is made on the land during the period specified in the notice.

(5)Any person who obstructs any person authorised by the Secretary of State exercising any such power as aforesaid shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding [F47level 2 on the standard scale] in the case of a first offence or [F47level 2 on the standard scale] in the case of a second or any subsequent offence.

90 Service of notices, etc. S

(1)Any notice or other document required or authorised by or under this Act to be given to or served on any person shall be duly given or served if it is delivered to him, or left at his proper address, or sent to him by post in a registered letter.

(2)Any such document required or authorised to be given to or served on an incorporated company or body shall be duly given or served if given to or served on the secretary or clerk of the company or body.

(3)For the purposes of this section and of section twenty-six of the M25 Interpretation Act, 1889, the proper address of any person to or on whom any such document as aforesaid is to be given or served shall, in the case of the secretary or clerk of any incorporated company or body, be that of the registered or principal office of the company or body, and in any other case be the last known address of the person in question.

(4)Unless or until the tenant of an agricultural holding shall have received notice that the person theretofore entitled to receive the rents and profits of the holding (hereinafter referred to as “the original landlord”) has ceased to be so entitled, and also notice of the name and address of the person who has become entitled to receive such rents and profits, any notice or other document served on or delivered to the original landlord by the tenant shall be deemed to have been served on or delivered to the landlord of the holding.

91 Prohibition of appeal from sheriff substitute.S

Where any jurisdiction committed by this Act to the sheriff is exercised by the sheriff substitute, there shall be no appeal to the sheriff.

92 Revocation and variation of orders.S

Any power conferred on the Secretary of State by this Act to make an order shall include a power, exercisable in the like manner and subject to the like conditions, to revoke or vary the order.

93 Interpretation.S

(1)In this Act, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say—

• “absolute owner” means the owner or person capable of disposing by disposition or otherwise of the fee simple or dominium utile of the whole interest of or in land, although the land, or his interest therein, is burdened, charged, or encumbered;

• “agricultural holding” has the meaning assigned to it by section one of this Act;

• “agricultural unit” means land which is an agricultural unit for the purposes of the M26 Agriculture (Scotland) Act, 1948;

• “agriculture” includes horticulture, fruit growing, seed growing, dairy farming and livestock breeding and keeping, the use of land as grazing land, meadow land, osier land, market gardens and nursery grounds, and the use of land for woodlands where that use is ancillary to the farming of land for other agricultural purposes, and “agricultural” shall be construed accordingly;

• “building” includes any part of a building;

• “Defence Regulations” means Regulations made under the M27M28 Emergency Powers (Defence) Acts, 1939 and 1940;

• “fixed equipment” includes any building or structure affixed to land and any works on, in, over or under land, and also includes anything grown on land for a purpose other than use after severance from the land, consumption of the thing grown or of produce thereof, or amenity, and, without prejudice to the foregoing generality, includes the following things, that is to say—

(a)all permanent buildings, including farm houses and farm cottages, necessary for the proper conduct of the agricultural holding;

(b)all permanent fences, including hedges, stone dykes, gate posts and gates;

(c)all ditches, open drains and tile drains, conduits and culverts, ponds, sluices, flood banks and main water courses;

(d)stells, fanks, folds, dippers, pens and bughts necessary for the proper conduct of the holding;

(e)farm access or service roads, bridges and fords;

(f)water and sewerage systems;

(g)electrical installations including generating plant, fixed motors, wiring systems, switches and plug sockets;

(h)shelter belts;

and references to fixed equipment on land shall be construed accordingly;

• “former enactment relating to agricultural holdings” means Part I of the M29 Agriculture (Scotland) Act, 1948, Part II of the M30 Small Landholders and Agricultural Holdings (Scotland) Act, 1931, the M31 Agricultural Holdings (Scotland) Act, 1923, and any enactment repealed by the last-mentioned Act;

• “Land Court” means the Scottish Land Court;

• “landlord” means any person for the time being entitled to receive the rents and profits or to take possession of any agricultural holding, and includes the executor, administrator, assignee, heir-at-law, legatee, disponee, next-of-kin, guardian, curator bonis or trustee in bankruptcy, of a landlord;

• “lease” means a letting of land for a term of years, or for lives, or for lives and years, or from year to year;

• “livestock” includes any creature kept for the production of food, wool, skins or fur, or for the purpose of its use in the farming of land;

• “market garden” means a holding, cultivated, wholly or mainly, for the purpose of the trade or business of market gardening;

• “new improvement” has the meaning assigned to it by subsection (2) of section forty-seven of this Act;

• “old improvement” has the meaning assigned to it by subsection (2) of section thirty-six of this Act;

• “1923 Act improvement” and “1931 Act improvement” have the meanings respectively assigned to them by subsection (1) of section thirty-six of this Act;

• “pasture” includes meadow;

• “prescribed” means prescribed by the Secretary of State by regulations made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament;

• “produce” includes anything (whether live or dead) produced in the course of agriculture;

• “tenant” means the holder of land under a lease and includes the executor, administrator, assignee, heir-at-law, legatee, disponee, next-of-kin, guardian, curator bonis, or trustee in bankruptcy, of a tenant;

• “termination”, in relation to a tenancy, means the termination of the lease by reason of effluxion of time or from any other cause;

• “Whitsunday” and “Martinmas” in relation to any lease entered into on or after the first day of November, nineteen hundred and forty-eight, mean respectively the twenty-eighth day of May and the twenty-eighth day of November.

(2)The provisions ot the Fifth and Sixth Schedules to the M32 Agriculture (Scotland) Act, 1948, (which have effect respectively for the purpose of determining for the purposes of that Act whether the owner of agricultural land is fulfilling his responsibilities to manage it in accordance with the rules of good estate management and whether the occupier of such land is fulfilling his responsibilities to farm it in accordance with the rules of good husbandry) shall have effect for the purposes of this Act as they have effect for the purposes of that Act.

(3)References in this Act to the farming of land include references to the carrying on in relation to the land of any agricultural activity.

(4)References in this Act to the use of land for agriculture include, in relation to land forming part of an agricultural unit, references to any use of the land in connection with the farming of the unit.

(5)References to the terms, conditions, or requirements of a lease of or of an agreement relating to an agricultural holding shall be construed as including references to any obligations, conditions or liabilities implied by the custom of the country in respect of the holding.

(6)The designations of landlord and tenant shall continue to apply to the parties until the conclusion of any proceedings taken under or in pursuance of this Act in respect of compensation for improvements or under any agreement made in pursuance of this Act.

(7)Anything which by or under this Act is required or authorised to be done by, to or in respect of the landlord or the tenant of an agricultural holding may be done by, to or in respect of any agent of the landlord or of the tenant.

94 Amendments of other Acts. S

The enactments specified in the Seventh Schedule to this Act shall have effect subject to the amendments specified in that Schedule.

95 Construction of references in other Acts to holdings as defined by the Agricultural Holdings (Scotland) Act, 1923.S

(1)References, in whatever terms, in any enactment, other than an enactment contained in this Act, in the M33M34 Agricultural Holdings (Scotland) Acts, 1923 and 1931, or in Part I of the Agriculture (Scotland) Act, 1948, to a holding within the meaning of the Agricultural Holdings (Scotland) Act, 1923, or of the M35 Agricultural Holdings (Scotland) Acts, 1923 to 1948, shall be construed as references to an agricultural holding as defined by section one of this Act.

(2)The foregoing subsection shall not apply to an enactment in so far as its operation is material for the purposes of the provisions of the said Acts of 1923 and 1931 or the said Act of 1948 to the extent to which they are excepted from the repeal of enactments effected by this Act.

96 Improvements carried out before 1909.S

The compensation in respect of an improvement made or out begun before the first day of January, nineteen hundred and nine (being the date of the commencement of the M36 Agricultural Holdings (Scotland) Act, 1908), or made upon an agricultural holding held under a lease, other than a lease from year to year, current on the first day of January, eighteen hundred and eighty-four, shall be such (if any) as could have been claimed if the Agricultural Holdings (Scotland) Acts, 1923 to 1948, and this Act had not passed, but the procedure for the ascertainment and recovery thereof shall be such as is provided by this Act, and the amount so ascertained shall be payable, recoverable and chargeable as if it were compensation under this Act.

97 Repeal of enactments.S

Subject to the provisions of the next following section the enactments specified in the first and second columns of the Eighth Schedule to this Act are hereby repealed to the extent specified in the third column of that Schedule.

98 Provisions as to tenants quitting before commencement of this Act, or thereafter in consequence of notice given, etc. before 1st November, 1948.S

In a case where the tenant of an agricultural holding has quitted the holding before the commencement of this Act, or quits it after the commencement of this Act in consequence of a notice to quit given (whether by him or his landlord) before the first day of November, nineteen hundred and forty-eight, or in consequence of a renunciation of the tenancy in pursuance of an agreement in writing made before that day, the provisions of this Act, so far as relating to the rights of landlords and tenants to compensation (including the provisions relating to the determination of compensation where a holding is divided, the apportionment of compensation in such a case and the payment of expenses caused by such an apportionment), and the payment and recovery of compensation shall not apply, and in lieu thereof the enactments specified in the Eighth Schedule to this Act, so far as relating to the matters aforesaid, shall continue to apply and shall accordingly be excepted from the operation of the last foregoing section.

99 General savings.S

(1)Nothing in this Act shall affect any order, rule, regulation, record, appointment, application or complaint made, approval, consent or direction given, proceeding or assignation taken, notice served or given, certificate issued, condition imposed or thing done under a former enactment relating to agricultural holdings but any such order, rule, regulation, record, appointment, application, complaint, approval, consent, direction, proceeding, assignation, notice, certificate, condition, or thing which is in force at the commencement of this Act, shall continue in force, and so far as it could have been made, given, taken, served, issued, imposed or done under the corresponding provision of this Act shall (save where it is material only for the purposes of the enactments specified in the Eighth Schedule to this Act so far as continued in force by virtue of the last foregoing section) have effect as if it had been made, given, taken, served, issued, imposed or done under that corresponding provision:

(2)Nothing in this Act shall affect any regulations having effect for the purposes of section seventy-one or eighty of the M37 Agriculture (Scotland) Act, 1948, which are in force at the commencement of this Act, but any such regulations shall continue to have effect for those purposes and shall also have effect for the purposes of sections seventy-two or seventy-one of this Act, as the case may be, as if they had been made by virtue of those sections respectively.

(3)Nothing in this Act shall affect any direction given under subsection (1) of section five of the M38 Agricultural Holdings (Scotland) Act, 1923, or the corresponding provision of an enactment repealed by that Act, by the Board or the Department of Agriculture for Scotland or by the Secretary of State, but any such direction which is in force at the commencement of this Act shall continue in force and shall (save where it is material only for the purposes of the enactments specified in the Eighth Schedule to this Act so far as continued in force by virtue of the last foregoing section) have efrect as if it were a direction of the Secretary of State under subsection (1) of section sixty-six of this Act.

(4)Any notice deemed to have been given by the Secretary of State under the Second Schedule to the M39 Agriculture (Scotland) Act, 1948, shall be deemed to have been given under subsection (2) of section twenty-eight of this Act.

(5)Any provision of the M40 Agricultural Holdings (Scotland) Act, 1923 or Part I of the Agriculture (Scotland) Act, 1948, or of any other enactment which (whatever its terms) has the effect of requiring a matter to be determined by arbitration under the said Act of 1923, shall be construed as having the effect of requiring that matter to be determined by arbitration under this Act, and an arbitration under the said Act of 1923 uncompleted at the commencement of this Act may be carried on and completed as if it had been begun under this Act:

(6)Notwithstanding subsection (1) of section thirty-eight of the M41 Interpretation Act, 1889 (which relates to the effect of repeals) any reference which is or is to be construed as a reference to a former enactment relating to agricultural holdings or an enactment repealed by the M42 Agricultural Holdings (Scotland) Act, 1908 (other than a reference in such an enactment or this Act or such a reference as is mentioned in subsection (1) of section ninety-five of this Act or adapted by the last foregoing subsection) shall, so far as the operation of the enactment in which the reference occurs is material for the purposes of the enactments specified in the Eighth Schedule to this Act so far as continued in force by virtue of the last foregoing section, be construed in like manner as if this Act had not passed, and otherwise shall (save where the context otherwise requires) be construed as a reference to the corresponding provision of this Act.

(7)Any document referring to a former enactment relating to agricultural holdings or an enactment repealed by the Agricultural Holdings (Scotland) Act, 1908, shall, so far as it or its operation is material for the purposes of the enactment specified in the Eighth Schedule to this Act so far as continued in force by virtue of the last foregoing section, be construed in like manner as if this Act had not passed, and otherwise shall be construed as referring to the corresponding provision of this Act.

(8)Nothing in this Act shall affect the provisions of the M43 Allotments (Scotland) Act, 1922, or be construed as repealing—

(a)section twenty-six of the M44 Agriculture (Miscellaneous War Provisions) Act, 1940 (which excludes the operation of the M45M46 Agricultural Holdings (Scotland) Acts, 1923 and 1931, in relation to certain tenancies granted during the war period);

(b)section fifteen of the M47 Agriculture (Miscellaneous Provisions) Act, 1943 (which relieves occupiers of agricultural land from liabilities and loss of compensation resulting from directions given under Defence Regulations); or

(c)any enactment contained in Part II of the M48 Agriculture (Scotland) Act, 1948.

(9)Any person holding office or acting or serving under or by virtue of a former enactment relating to agricultural holdings shall continue to hold his office or to act or serve as if he had been appointed by or by virtue of the corresponding provision of this Act.

(10)Notwithstanding subsection (2) of section thirty-eight of the M49 Interpretation Act, 1889, rights to compensation conferred by this Act shall be in lieu of rights to compensation conferred by any former enactment relating to agricultural holdings.

(11)Save to the extent to which it is otherwise provided by subsections (6) and (10) of this section, the mention of particular matters in this section shall not be taken to affect the general application of section thirty-eight of the Interpretation Act, 1889.

100 Savings for other rights, etc. S

Subject to the provisions of subsection (2) of section twelve and subsection (1) of section sixty-eight of this Act in particular, and to any other provision of this Act which otherwise expressly provides, nothing in this Act shall prejudicially affect any power, right or remedy of a landlord, tenant or other person, vested in or exercisable by him by virtue of any other Act or law, or under any custom of the country, or otherwise, in respect of a lease or other contract, or of any improvements, deteriorations, away-going crops, fixtures, tax, rate, teind, rent or other thing.

101 Short title and extent.S

(1)This Act may be cited as the Agricultural Holdings (Scotland) Act, 1949.

(2)This Act shall extend to Scotland only.

SCHEDULES

Sections 11, 47, 50, 51, 52, 53, 63, 65, 79, 81, 86

FIRST SCHEDULES Improvements begun on or after 1st November, 1948, for which compensation may be payable

Part IS Improvements to which consent of landlord is required

1Laying down of permanent pasture.

2Making of water-meadows or works of irrigation.

3Making of gardens.

4Planting of orchards or fruit bushes.

5Warping or weiring of land.

6Making of embankments and sluices against floods.

7Making or planting of osier beds.

8Haulage or other work done by the tenant in aid of the carrying out of any improvement made by the landlord for which the tenant is liable to pay increased rent.

PART IIS Improvements in respect of which notice to landlord is required

9Land drainage.

10Construction of silos.

11Making or improvement of farm access or service roads, bridges and fords.

12Making or improvement of watercourses, ponds or wells, or of works for the application of water power for agricultural or domestic purposes or for the supply of water for such purposes.

13Making or removal of permanent fences, including hedges, stone dykes and gates.

14Reclaiming of waste land.

15Renewal of embankments and sluices against floods.

16Provision of stells, fanks, folds, dippers, pens and bughts necessary for the proper conduct of the holding.

17Provision or laying on of electric light or power, including the provision of generating plant, fixed motors, wiring systems, switches and plug sockets.

18Erection, alteration or enlargement of buildings, and making or improvement of permanent yards, loading banks and stocks.

19Erection of hay or sheaf sheds, sheaf or grain drying racks, and implement sheds.

20Provision of fixed threshing mills, barn machinery and fixed dairying plant.

21Improvement of permanent pasture by cultivation and re-seeding.

22Provision of means of sewage disposal.

23Repairs to fixed equipment, being equipment reasonably required for the efficient farming of the holding, other than repairs which the tenant is under an obligation to carry out.

Part IIIS Improvements in respect of which consent of, or notice to, landlord is not required

24Protecting fruit trees against animals.

F48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

25

26Clay burning.

27Claying of land.

28Liming [F49(including chalking)] of land.

29Marling of land.

30Eradication of bracken, whins or broom growing on the holding at the commencement of the tenancy and, in the cases of arable land, removal of tree roots, boulders, stones or other like obstacles to cultivation.

31Application to land of purchased [F50manure and fertiliser, whether organic or inorganic].

32Consumption on the holding of corn (whether produced on the holding or not) or of cake or other feeding stuff not produced on the holding [F51by horses, cattle, sheep, pigs or poultry].

33Laying down temporary pasture with clover, grass, lucerne, sainfoin, or other seeds, sown more than two years prior to the termination of the tenancy, in so far as the value of the temporary pasture on the holding at the time of quitting exceeds the value of the temporary pasture on the holding at the commencement of the tenancy for which the tenant did not pay compensation.

Sections 36, 39, 40 41 42, 44, 63, 65, 81, 86.

SECOND SCHEDULES Improvements begun before 31st July, 1931, for which compensation may be payable

Part IS Improvements for which compensation is payable if consent of landlord was obtained to their execution

1Erection, alterations, or enlargement of buildings.

2Formation of silos.

3Laying down of permanent pasture.

4Making and planting of osier beds.

5Making of water meadows or works of irrigation.

6Making of gardens.

7Making or improvernent of roads or bridges.

8Making or improvement, of watercourses, ponds, wells, or reservoirs, or of works for the application of water power or for supply of water for agricultural or domestic purposes.

9Making or removal of permanent fences.

10Planting of hops.

11Planting of orchards or fruit bushes.

12Protecting young fruit trees.

13Reclaiming of waste land.

14Warping or weiring of land.

15Embankments and sluices against floods.

16Erection of wirework in hop gardens.

17Provision of permanent sheep dipping accommodation.

18In the case of arable land the removal of bracken, gorse, tree roots, boulders, or other like obstructions to cultivation.

Part IIS Improvement for which compensation is payable if notice was given to landlord before execution thereof

19Drainage.

Part IIIS Improvements for which compensation is payable without consent of, or notice to, landlord of their execution

20Chalking of land.

21Clay-burning.

22Claying of land or spreading blaes upon land.

23Liming of land.

24Marling of land.

25Application to land of purchased artificial or other purchased manure.

26Consumption on the holding by cattle, sheep, or pigs, or by horses other than those regularly employed on the holding, of corn, cake, or other feeding stuff not produced on the holding.

27Consumption on the holding by cattle, sheep, or pigs, or by horses other than those regularly employed oil the holding, of corn proved by satisfactory evidence to have been produced and consumed on the holding.

28Laying down temporary pasture with clover, grass, lucerne, sainfoin, or other seeds, sown more than two years prior to the termination of the tenancy, in so far as the value of the temporary pasture on the holding at the time of quitting exceeds the value of the temporary pasture on the holding at the commencement of the tenancy for which the tenant did not pay compensation.

29Repairs to buildings, being buildings necessary for the proper cultivation or working of the holding, other than repairs which the tenant is himself under an obligation to execute.

Sections 36, 39, 40 41, 42, 43, 44, 63, 65, 81, 86.

THIRD SCHEDULES Improvements begun on or after 31st July, 1931, and before 1st November, 1948, for which compensation may be payable

Part IS Improvements for which compensation is payable if consent of landlord was obtained to their execution

1Erection, alteration, or enlargement of buildings.

2Laying down of permanent pasture.

3Making and planting of osier beds.

4Making of water meadows or works of irrigation.

5Making of gardens.

6Planting of orchards or fruit bushes.

7Protecting young fruit trees.

8Warping or weiring of land.

9Making of ernbankments and sluices against floods.

Part IIS Improvements for which compensation is payable if notice was given to landlord before execution thereof

10Drainage.

11Formation of silos.

12Making or improvement of roads or bridges.

13Making or improvement of watercourses, ponds or wells, or of works for the application of water power or for the supply of water for agricultural or domestic purposes.

14Making or removal of permanent fences.

15Reclaiming of waste land.

16Repairing or renewal of embankments and sluices against floods.

17Provision of sheep dipping accommodation.

18The provision of electrical equipment other than moveable fittings and appliances.

Part IIIS Improvements for which compensation is payable without consent of, or notice to, landlord of their execution

19Chalking of land.

20Clay-burning.

21Claying of land or spreading blaes upon land.

22Liming of land.

23Marling of land.

24Eradication of bracken, whins, or gorse growing on the holding at the commencement of a tenancy and in the case of arable land the removal of tree roots, boulders, stones or other like obstacles to cultivation.

25Application to land of purchased artificial or other purchased manure.

26Consumption on the holding by cattle, sheep, or pigs, or by horses other than those regularly employed on the holding, of corn, cake, or other feeding stuff not produced on the holding.

27Consumption on the holding by cattle, sheep, or pigs, or by horses other than those regularly employed on the holding of, corn proved by satisfactory evidence to have been produced and consumed on the holding.

28Laying down temporary pasture with clover, grass, lucerne, sainfoin, or other seeds, sown more than two years prior to the termination of the tenancy, in so far as the value of the temporary pasture on the holding at the time of quitting exceeds the value of the temporary pasture on the holding at the commencement of the tenancy for which the tenant did not pay compensation.

29Repairs to buildings, being buildings necessary for the proper cultivation or working of the holding, other than repairs which the tenant is himself under an obligation to execute.

Sections 65, 66, 79, 86.

FOURTH SCHEDULES Market garden improvements for which compensation may be payable

1Planting of standard or other fruit trees permanently set out.

2Planting of fruit bushes permanently set out.

3Planting of strawberry plants.

4Planting os asparagus, rhubarb, and other vegetable crops which continue productive for two or more years.

5Erection, alteration or enlargement of buildings for the purpose of the trade or business of a market gardener.

Section 4.

FIFTH SCHEDULES Matters for which provision is to be made in written leases

1The names of the parties.

2Particulars of the holding with sufficient description, by reference to a map or plan, of the fields and other parcels of land comprised therein to identify the extent of the holding.

3The term or terms for which the holding or different parts thereof is or are agreed to be let.

4The rent and the dates on which it is payable.

5An undertaking by the landlord in, the event of damage by fire to any building comprised in the holding to reinstate or replace the building if its reinstatement or replacement is required for the fulfilment of his responsibilities to manage the holding in accordance with the rules of good estate management, and (except where the interest of the landlord is held for the purposes of a government department or a person representing His Majesty under section eighty-six of this Act is deemed to be the landlord, or where the landlord has made provision approved by the Secretary of State for defraying the cost of any such reinstatement or replacement as aforesaid) an undertaking by the landlord to insure to their full value all such buildings against damage by fire.

6An undertaking by the tenant, in the event of the destruction by fire of harvested crops grown on the holding for consumption thereon, to return to the holding the full equivalent manurial value of the crops destroyed, in so far as the return thereof is required for the fulfilment of his responsibilities to farm in accordance with the rules of good husbandry, and (except where the interest of the tenant is held for the purposes of a government department or where the tenant has made provision approved by the Secretary of State in lieu of such insurance) an undertaking by the tenant to insure to their full value all dead stock on the holding and all such harvested crops as aforesaid against damage by fire.

Sections 75, 76, 99.

SIXTH SCHEDULES Provisions as to Arbitrations

Appointment of arbiterS

1A person agreed upon between the parties or, in default of agreement, appointed on the application in writing of either of the parties by the Secretary of State from among the members of the panel constituted under this Act for the purpose, shall be appointed arbiter.

2If a person appointed arbiter dies, or is incapable of acting, or for seven days after notice from either party requiring him to act fails to act, a new arbiter may be appointed as if no arbiter had been appointed.

3Neither party shall have the power to revoke the appointment of the arbiter without the consent of the other party.

4Every appointment, notice, revocation and consent under the foregoing provisions of this Schedule must be in writing.

Particulars of ClaimS

5Each of the parties to the arbitration shall within [F52twenty-eight] days from the appointment of the arbiter deliver to him a statement of that party’s case with all necessary particulars; and

(a)no amendment or addition to the statement or particulars delivered shall be allowed after the expiration of the said [F52twenty-eight] days except with the consent of the arbiter;

(b)a party to the arbitration shall be confined at the hearing to the matters alleged in the statement and particulars so delivered and any amendment thereof or addition thereto duly made.

EvidenceS

6The parties to the arbitration, and all persons claiming through them respectively, shall, subject to any legal objection, submit to be examined by the arbiter on oath or affirmation in relation to the matters in dispute, and shall, subject as aforesaid, produce before the arbiter all samples, books, deeds, papers, accounts, writings, and documents, within their possession or power respectively which may be required or called for, and do all other things which during the proceedings the arbiter may require.

7The arbiter shall have power to administer oaths, and to take the affirmation of parties and witnesses appearing, and witnesses shall, if the arbiter thinks fit, be examined on oath or affirmation.

AwardS

8The arbiter shall make and sign his award within [F53three] months of his appointment or within such longer period as may, either before or after the expiry of the aforesaid period be agreed to in writing by the parties, or be fixed by the Secretary of State.

9The arbiter may, if he thinks fit, make an interim award for the payment of any sum on account of the sum to be finally awarded.

[F549AAn arbiter appointed by the Secretary of State or the Land Court in an arbitration under section 7(1) of this Act shall, in making his award, state in writing his findings of fact and the reasons for his decision and shall make such statement available to the Secretary of State and the parties.]

10The award [F55, and any statement made under paragraph 9A of this Schedule,] shall be in such form as may be specified by statutory instrument made by the Secretary of State.

11The arbiter shall—

(a)state separately in his award the amounts awarded in respect of the several claims referred to him; and

(b)on the application of either party, specify the amount awarded in respect of any particular improvement or any particular matter the subject of the award.

12Where by virtue of this Act compensation under an agreement is to be substituted for compensation under this Act for improvements, the arbiter shall award compensation in accordance with the agreement instead of in accordance with this Act.

13The award shall fix a day not later than one month after delivery of the award for the payment of the money awarded as compensation, expenses or otherwise.

14[F56Subject to section 75(1A) of this Act,] the award to be made by the arbiter shall be final and binding on the parties and the persons claiming under them respectively.

15The arbiter may correct in an award any clerical mistake or error arising from any accidental slip or omission.

ExpensesS

16The expenses of and incidental to the arbitration and award shall be in the discretion of the arbiter, who may direct to and by whom and in what manner those expenses or any part thereof are to be paid, and the expenses shall be subject to taxation by the auditor of the sheriff court on the application of either party, but that taxation shall be subject to review by the sheriff.

17The arbiter shall, in awarding expenses, take into consideration the reasonableness or unreasonableness of the claim of either party whether in respect of amount or otherwise, and any unreasonable demand for particulars or refusal to supply particulars, and generally all the circumstances of the case, and may disallow the expenses of any witness whom he considers to have been called unnecessarily and any other expenses which he considers to have been incurred unnecessarily.

18It shall not be lawful to include in the expenses of and incidental to the arbitration and award, or to charge against any of the parties, any sum payable in respect of remuneration or expenses to any person appointed by the arbiter to act as clerk or otherwise to assist him in the arbitration unless such appointment was made after submission of the claim and answers to the arbiter and with either the consent of the parties to the arbitration or the sanction of the sheriff.

Statement of caseS

19[F57Subject to paragraph 20A of this Schedule,] the arbiter may at any stage of the proceedings, and shall, if so directed by the sheriff (which direction may be given on the application of either party), state a case for the opinion of the sheriff on any question of law arising in the course of the arbitration.

20[F58Subject to paragraph 20A of this Schedule,] the opinion of the sheriff on any case stated under the last foregoing paragraph shall be final unless, within such time and in accordance with such conditions as may be specified by act of sederunt, either party appeals to the Court of Session, from whose decision no appeal shall lie.

[F5920AWhere the arbiter in any arbitration under section 7(1) of this Act has been appointed by the Secretary of State or the Land Court paragraphs 19 and 20 of this Schedule shall not apply as regards the arbitration and instead the arbiter may at any stage of the proceedings state a case (whether at the request of either party or on his own initiative) on any question of law arising in the course of the arbitration for the opinion of the Land Court, whose decision shall be final.]

Removal of arbiter and setting aside of awardS

21Where an arbiter has misconducted himself the sheriff may remove him.

22When an arbiter has misconducted himself, or an arbitration or award has been improperly procured, the sheriff may set the award aside.

FormsS

23Any forms for proceedings in arbitrations under this Act which may be specified by statutory instrument made by the Secretary of State shall, if used, be sufficient.

Section 94

SEVENTH SCHEDULES Amendments of other Acts

The Small Landholders and Agricultural Holdings (Scotland) Act, 1931S

In section twenty-six, for subsection (2) there shall be substituted the following subsection:—

“(2)This Part of this Act may be cited as the Small Landholders (Scotland) Act, 1931, and shall be construed as one with the Small Landholders (Scotland) Acts, 1886 to 1919, and those Acts and this Part of this Act may be cited together as the Small Landholders (Scotland) Acts, 1886 to 1931.”

The Hill Farming Act, 1946S

The Hill Farming Act, 1946, shall, in its application to Scotland, have effect with the substitution for section nine thereof of the following section—

“9 Operation of the Agricultural Holdings (Scotland) Act, 1949, in relation to improvement schemes.

(1)Subject to the provisions of this section, the Agricultural Holdings (Scotland) Act, 1949, shall apply to improvements for which provision is made by an approved hill farming land improvement scheme as it applies to other improvements.

(2)Where a tenant of an agricultural holding within the meaning of the said Act of 1949 has carried out thereon an improvement specified in Part I or Part II of the First Schedule to that Act in accordance with provision in such a scheme for the carrying out of the improvement and for the tenant’s being responsible for doing the work, being provision included in the scheme at the instance or with the consent of the landlord, then—

(a)in the case of an improvement specified in the said Part I, the landlord shall be deemed to have consented as mentioned in section fifty of that Act in relation to the improvement; or

(b)in the case of an improvement specified in the said Part II, the tenant shall be deemed to have given notice to the landlord as mentioned in section fifty-one of that Act in relation to the improvement and the landlord shall be deemed to have received the notice and to have given no such notice to the tenant as is mentioned in section fifty-two of that Act objecting to the carrying out of the improvement or to the manner in which the tenant proposes to carry out the work;

and any agreement as to compensation or otherwise made between the landlord and the tenant in relation to the improvement shall have effect as if it had been such an agreement on terms as is mentioned in the said section fifty or the said section fifty-one as the case may be.

(3)If on the ground of work being badly done the appropriate Minister withholds or reduces the improvement grant in respect of an improvement, he may direct that any right conferred by section eight of the Agricultural Holdings (Scotland) Act, 1949, to have the rent of an agricultural holding increased shall not be exercisable in respect of the improvement, or shall be exercisable only to such extent as may be specified in the direction, and any such direction given after that right has been exercised shall be retrospective and any excess rent paid shall be repaid accordingly.

(4)In assessing the amount of any compensation payable, whether under the said Act of 1949 or under custom or agreement, to the tenant of an agricultural holding, if it is shown to the satisfaction of the person assessing the compensation that the improvement or cultivations in respect of which the compensation is claimed was or were wholly or in part the result of or incidental to work in respect of the cost of which an improvement grant has been paid or will be payable, the amount of the grant shall be taken into account as if it had been a benefit allowed to the tenant in consideration of his executing the improvement or cultivations, and the compensation shall be reduced to such extent as that person considers appropriate.”

Sections 97, 98, 99.

EIGHTH SCHEDULES Enactments Repealed

[F61NINTH SCHEDULE]S

Part IS Grounds for Consent to Operation of Notice to Quit a Tenancy Let Before 1 January 1984

Case 1S

The tenant has neither sufficient training in agriculture nor sufficient experience in the farming of land to enable him to farm the holding with reasonable efficiency.

Case 2S

(a)The holding or any agricultural unit of which it forms part is not a two-man unit;

(b)the landlord intends to use the holding for the purpose of effecting an amalgamation within two years after the termination of the tenancy; and

(c)the notice specifies the land with which the holding is to be amalgamated.

Case 3S

The tenant is the occupier (either as owner or tenant) of agricultural land which—

and the notice specifies the agricultural land.

Part IIS Grounds for Consent to Operation of Notice to Quit a Tenancy Let On or After 1 January 1984

Case 4S

The tenant does not have sufficient financial resources to enable him to farm the holding with reasonable efficiency.

Case 5S

The tenant has neither sufficient training in agriculture nor sufficient experience in the farming of land to enable him to farm the holding with reasonable efficiency: Provided that this Case shall not apply where the tenant has been engaged, throughout the period from the date of death of the person from whom he acquired right to the lease, in a course of relevant training in agriculture which he is expected to complete satisfactorily within four years from the said date and has made arrangements to secure that the holding will be farmed with reasonable efficiency until he completes that course.

Case 6S

(a)The holding or any agricultural unit of which it forms part is not a two-man unit;

(b)the landlord intends to use the holding for the purpose of effecting an amalgamation within two years after the termination of the tenancy; and

(c)the notice specifies the land with which the holding is to be amalgamated.

Case 7S

The tenant is the occupier (either as owner or tenant) of agricultural land which—

and the notice specifies the land.

Part IIIS Supplementary

1For the purposes of section 26A of this Act and this Schedule—

• “amalgamation” means a transaction for securing that agricultural land which is comprised in a holding to which a notice to quit relates and which together with other agricultural land could form an agricultural unit, shall be owned and occupied in conjunction with that other land;

• “near relative” in relation to a deceased tenant of an agricultural holding means a surviving spouse or child of that tenant, including a child adopted by him in pursuance of an adoption order (as defined in section 23(5) of the Succession (Scotland) Act 1964); and

• “two-man unit” means an agricultural unit which in the opinion of the Land Court is capable of providing full-time employment for an individual occupying it and at least one other man.

2For the purposes of determining whether land is a two-man unit, in assessing the capability of the unit of providing employment it shall be assumed that the unit is farmed under reasonably skilled management, that a system of husbandry suitable for the district is followed and that the greater part of the feeding stuffs required by any livestock kept on the unit is grown there.

3For the purposes of Case 7 of this Schedule, occupation of agricultural land—

(a)by a company which is controlled by the tenant shall be treated as occupation by the tenant; and

(b)by a Scottish partnership shall, notwithstanding section 4(2) of the Partnership Act 1890, be treated as occupation by each of its partners.