PART II.

Compensation for Improvements.

10. —(1) Subject to the provisions of this Act, a tenant of a tenement shall be entitled, on quitting such tenement on the expiration (otherwise than by surrender or ejectment for nonpayment of rent) of his tenancy therein, to be paid by the landlord of such tenement compensation (in this Act referred to as compensation for improvements) in accordance with this Act for every improvement made on such tenement by such tenant or any of his predecessors in title (whether before or after the passing of this Act) which, at the termination of such tenancy, adds to the letting value and is suitable to the character of such tenement.

(2) Subject to the provisions of this Act, a landlord of a tenement who holds such tenement under a lease or other contract of tenancy shall be entitled, on giving up possession of such tenement on the expiration of his lease or tenancy therein, to be paid by his immediate superior landlord compensation (in this Act included in the expression compensation for improvements) for every improvement which was made (whether before or after the passing of this Act) on such tenement by a tenant thereof and in respect of which such landlord or any of his predecessors in title has given consideration either by reduction of rent, or by payment of compensation under the Town Tenants (Ireland) Act, 1906, or by payment of compensation for improvements under this Act, or in any other way.

11. —(1) The amount of compensation for improvements in any particular case shall be such sum as may be agreed on between the landlord and the tenant and in default of such agreement shall (subject to the provisions of this section) be the capitalised value of such addition to the letting value of the tenement at the termination of the tenancy as the Court shall determine to be attributable to the improvement which is the subject of such compensation.

(2) Where the compensation for an improvement is payable to a tenant by his landlord and the Court is satisfied that such tenant and (where applicable) his predecessors in title or any of them has or have received from the landlord benefits by way of reduction of rent or otherwise in consideration, expressly or impliedly, of such improvement being or having been made, the Court shall deduct from the compensation for such improvement as ascertained under the foregoing sub-section of this section such sum as the Court shall think proper in respect of such benefits.

(3) Where the compensation for an improvement is payable to a landlord by his superior landlord, the Court shall make such deduction (if any) from such compensation as ascertained under the first sub-section of this section as the Court shall think proper in respect of benefits received by such landlord and (where applicable) his predecessors, in title or any of them by way of increased rent or otherwise on account of such improvement.

(4) The capitalised value for the purposes of this section of an addition to the letting value of a tenement shall be fixed by the Court having regard to the probable duration of such addition, the probable life of the improvement, and all other relevant circumstances, but shall not in any case exceed fifteen times the annual amount of such addition.

12. —(1) Where the tenant of a tenement proposes to make an improvement to such tenement he may serve on his landlord a notice (in this Act referred to as an improvement notice) in the prescribed form and consisting of the following documents, that is to say:—

(a) a statement in the prescribed form of the intention to make such improvement, and

(b) plans and a specification of such improvement, and

(c) an estimate, verified by an architect, surveyor or building contractor, of the cost of making such improvement.

(2) Where an improvement notice is served on the landlord of a tenement, such landlord may, within two months after such service, serve on the tenant of such tenement any one but not more than one of the following notices, that is to say:—

(a) a notice (in this Act referred to as an improvement consent) in the prescribed form consenting to the making of such improvement; or

(b) a notice (in this Act referred to as an improvement undertaking) in the prescribed form undertaking to execute such improvement in consideration of either (as such landlord shall state in such notice) a specified increase of rent or an increase of rent to be fixed by the Court; or

(c) a notice (in this Act referred to as an improvement objection) in the prescribed form objecting to such improvement on grounds specified in such notice.

(3) Where a landlord on whom an improvement notice has been served holds the tenement in relation to which such notice was served either under a lease for a life or lives in being (either without a term of years or with a concurrent term of which less than twenty-five years are unexpired) or under a lease for a term of which less than twenty-five years are unexpired at the date of the service of such notice or under a tenancy from year to year or any lesser tenancy, such landlord shall, within one month after the service of such improvement notice on him, serve such improvement notice or a copy thereof on his immediate superior landlord, and such immediate superior landlord may, within two months after the date of the service of such improvement notice by the tenant on the landlord, serve on the landlord and on the tenant either an improvement consent or an improvement objection.

(4) Every superior landlord on whom an improvement notice or a copy thereof is served under this section (including this sub-section) and who holds the tenement to which such notice relates under a lease of which less than twenty-five years are unexpired at the date of such service or under a tenancy from year to year or any lesser tenancy, shall within one week after such service serve such improvement notice (or such copy thereof) or a copy thereof on his next superior landlord, and such next superior landlord shall have the like right of serving an improvement consent or an improvement objection as such first-mentioned superior landlord has under this section (including this sub-section).

(5) Every improvement notice or copy of an improvement notice which is served under this section on a superior landlord shall have endorsed thereon a statement of the date on which such improvement notice was served on the landlord of the tenement to which such notice relates.

13. —(1) Where a sanitary authority serves under the Public Health Acts, 1878 to 1931, or the Housing of the Working Classes (Ireland) Acts, 1890 to 1921, a notice on the tenant of a tenement requiring the execution by such tenant of any work which is an improvement within the meaning of this Act, such tenant shall, within three days after the service of such notice on him, serve on the landlord of such tenement a notice in writing (in this Act referred to as a sanitary work notice) stating the fact of the service of such notice by such sanitary authority and stating the material portions of such notice.

(2) Where a sanitary work notice is served on the landlord of a tenement such landlord may, within three days after such service, serve on the tenant of such tenement a notice (in this Act referred to as a sanitary work undertaking) in the prescribed form undertaking to execute such work in consideration of either (as such landlord shall state in such notice) a specified increase of rent or an increase of rent to be fixed by the Court.

(3) Whenever the landlord of a tenement has served under and in accordance with this section a sanitary work undertaking on the tenant of such tenement the following provisions shall have effect, that is to say:—

(a) the service of such undertaking shall have the same effect as the service on such tenant of an improvement undertaking, and the provisions of this Act in relation to an improvement undertaking shall apply accordingly; and

(b) such tenant may serve on the sanitary authority a copy of such sanitary work undertaking and thereupon the obligation to comply with the notice served by the sanitary authority and the liability for failure to comply with such notice shall be transferred to and become and be the obligation and liability of such landlord in exoneration of such tenant.

(4) Where a tenant has served a sanitary work notice on his landlord and such landlord has not, within three days after such service, served on such tenant a sanitary work undertaking in respect of such sanitary work notice, such tenant shall be entitled to execute as an improvement the work mentioned in the notice the service of which by the sanitary authority occasioned the service of such sanitary work notice.

14. —(1) Where a tenant has served an improvement notice on his landlord and such landlord has not, within two months after such service, served on such tenant an improvement undertaking in respect of such improvement notice and neither such landlord nor any superior landlord has, within such two months, served on such tenant an improvement objection in respect of such improvement notice, the tenant shall be entitled to execute at any time within one year after such service (whether an improvement consent has or has not been served by such landlord or superior landlord) the improvement specified in such improvement notice in accordance in all respects with such notice.

(2) References in this Act to a tenant being entitled on consent to execute an improvement shall be construed as referring to such tenant being entitled under this section to execute such improvement.

15. —Where a tenant has served an improvement notice on his landlord and such landlord has, within two months after such service, served on such tenant an improvement undertaking in respect of such improvement notice and no superior landlord has within such two months, served on such tenant an improvement objection in respect of such improvement notice, the following provisions shall have effect, that is to say:—

(a) such tenant may, by notice in writing served on such landlord within fourteen days after the service of such improvement undertaking, either accept such improvement undertaking, or withdraw the improvement notice served by him, or, where such improvement undertaking specifies an increase of rent, object to the amount of such increase;

(b) where such tenant does not within the said fourteen days serve any notice under the foregoing paragraph or such tenant duly accepts such improvement undertaking, such landlord shall, as soon as may be, and in any case not later than six months after the expiration of such fourteen days, execute and complete at his own expense and in accordance with such improvement undertaking the improvement mentioned therein and may for that purpose enter on the tenemcnt at all reasonable times and there do all things necessary for or incidental to the execution of such improvement;

(c) if such tenant duly withdraws in accordance with this section the improvement notice served by him, such notice shall for all purposes be deemed never to have been served;

(d) where such tenant duly objects in accordance with this section to the amount of the increase of rent specified in such improvement undertaking, then—

(i) such landlord and such tenant may either fix by agreement the amount of such increase of rent or agree that the amount of such increase of rent shall be fixed by the Court, and thereupon such improvement undertaking shall have effect in accordance with such agreement and be deemed to have been duly accepted in accordance with this section by such tenant, or

(ii) either such landlord or such tenant may apply to the Court and upon the hearing of such application the Court may, as it shall think proper, either fix the amount of such increase of rent or deem such improvement undertaking to be an improvement objection and deal with it accordingly or make such other order as justice may require;

(e) where such improvement undertaking is by its terms or by subsequent agreement, made subject to an increase of rent of an amount to be fixed by the Court, such landlord or such tenant may, when the improvement has been duly executed by such landlord, apply to the Court to fix the amount of such increase of rent and thereupon the Court shall fix such amount accordingly;

(f) upon the completion of such improvement by such landlord in accordance with such improvement undertaking and this section, the rent payable by such tenant to such landlord shall, as from the date of such completion, be increased in accordance with such undertaking or the order of the Court (as the case may be), and any dispute as to the amount or commencement of or otherwise in relation to such increase shall be determined by the Court on the application of such landlord or such tenant;

(g) where such landlord is bound under this section to execute the improvement in accordance with such improvement undertaking but fails or neglects to execute and complete such improvement within the time limited in that behalf by this section such tenant may apply to the Court and the Court may make such order in the matter as justice may require.

16. —(1) Where a tenant has served an improvement notice on his landlord and either such landlord or a superior landlord has, within two months after such service, served on such tenant an improvement objection in respect of such improvement notice, such tenant may save as is otherwise provided in this section, within one month after the service of such improvement objection, either—

(a) by notice in writing served on such landlord or on such landlord and such superior landlord (as the case may require) withdraw such improvement notice, or

(b) apply to the Court under this section.

(2) Where a tenant has served an improvement notice on his landlord and either such landlord or a superior landlord has, within two months after such service, served on such tenant an improvement objection in respect of such improvement notice, then, unless such tenant either holds the tenement to which such notices relate under a lease or other contract of tenancy granted for a term of more than five years or for a life or lives or such tenant and his predecessors in title have been in occupation of such tenement for more than five years, the said improvement objection shall be final and it shall not be lawful for such tenant to make the improvement which is the subject of such improvement objection.

(3) Where a tenant duly withdraws, in accordance with this section, an improvement notice, such notice shall for all purposes be deemed never to have been served.

(4) Where a tenant applies to the Court under this section and the Court is satisfied—

(a) that the improvement which is the subject of such application is of such character as to be calculated to add to the letting value of the tenement, and

(b) is suitable to the character of such tenement, and

(c) is not calculated to injure the amenity or convenience of the neighbourhood,

the Court may make an order (in this Act referred to as an improvement order) authorising such tenant to make such improvement in accordance with the said improvement notice either without modification or with such modifications as the Court shall think proper to specify in such order and, if the Court so thinks fit, specifying a time within which such improvement shall be completed.

(5) Where, on an application to the Court under this section, it appears that the improvement objection the subject of the application was served by a superior landlord and that the landlord duly served an improvement undertaking and the Court is satisfied that but for this sub-section an improvement order should be made, the Court may, in lieu of making an improvement order, authorise such landlord to execute the improvement in accordance with such improvement undertaking subject to such (if any) modifications as the Court may think proper to make in such undertaking.

(6) The court shall not make an improvement order until it is satisfied that all interested parties have notice of the proceedings.

(7) Where an improvement order has been made and the tenant fails or neglects to execute and complete in accordance with such order the improvement thereby authorised within the time limited in that behalf by such order or, where no such time is so limited, within a reasonable time, the landlord or any superior landlord may apply to the Court and on the hearing of such application the Court may make such order as justice may require.

17. —(1) The tenant of a tenement to which the Town Tenants (Ireland) Act, 1906, applied immediately before the passing of this Act shall not be entitled to compensation for improvements in respect of an improvement made on such tenement on or after the 1st day of January, 1907, and before the passing of this Act and in respect of which compensation could be awarded under the Town Tenants (Ireland) Act, 1906, and in respect of which such tenant is precluded by sub-section (3) of section 3 from claiming compensation under that Act.

(2) A tenant shall not be entitled to compensation for improvements in respect of an improvement made before the passing of this Act on a tenement in contravention of the lease or other contract of tenancy under which such tenement was held.

(3) A tenant shall not be entitled to compensation for improvements in respect of an improvement made after the passing of this Act unless—

(a) an improvement notice was duly served in accordance with this Act in relation to such improvement, and

(b) the tenant by whom such notice was so served became entitled under this Act to execute such improvement either on consent or by virtue of an improvement order, and

(c) such improvement was duly executed in accordance (as the case may be) with such improvement notice and this Act or with such improvement order.

(4) A landlord shall not be entitled to compensation for improvements in respect of an improvement made after the passing of this Act in relation to which the improvement notice (or a copy thereof) served by the tenant in respect of such improvement was not duly served on the superior landlord in accordance with this Act.

(5) Neither of the two next foregoing sub-sections of this section shall apply in respect of an improvement which is a work executed in pursuance of an order of a sanitary authority under the Public Health Acts, 1878 to 1931, or the Housing of the Working Classes (Ireland) Acts, 1890 to 1921, but a tenant shall not be entitled to compensation in respect of such work unless such tenant has served on his landlord a sanitary work notice in respect of such work and has become entitled under this Act to execute such work as an improvement: provided that the failure to serve such notice shall not deprive a tenant of his right (if any) to compensation in respect of such work if such tenant satisfies the Court that his landlord did not suffer any loss or damage by reason of such failure.

(6) The landlord of a tenement to which the Town Tenants (Ireland) Act, 1906, applied immediately before the passing of this Act shall not be entitled to compensation for improvements in respect of an improvement made on such tenement on or after the 1st day of January, 1907, and before the passing of this Act in respect of which he would be precluded by section 4 of the Town Tenants (Ireland) Act, 1906, from claiming compensation under that Act.

18. —(1) Where—

(a) a tenant has duly served an improvement notice and no improvement undertaking or improvement objection is duly served in respect of such notice and such tenant executes and completes in accordance with such notice the improvement mentioned therein within one year from the service of such notice, or

(b) a tenant duly executes an improvement in accordance with an improvement order and completes such improvement within the time limited in that behalf by such order or, where no such time is so limited, within a reasonable time,

the landlord of such tenant shall, on the application of such tenant within six months after the completion of such improvement, give to such tenant a certificate (in this Act referred to as an improvement certificate) in writing in the prescribed form certifying that such improvement has been duly completed in accordance with such improvement notice or improvement order, as the case may be.

(2) Where a tenant has duly applied under this section to his landlord for an improvement certificate and such landlord does not give such certificate to such tenant within one month after such application, such tenant may apply to the Court, and on the hearing of such application the Court may make such order as justice shall require, including an order declaring that such improvement was duly made in accordance with the improvement notice or improvement order, as the case may be.

(3) An improvement certificate shall, as against the landlord by whom it is given and every of his successors in title, be conclusive evidence that the improvement mentioned in such certificate was duly executed and completed by the tenant to whom such certificate is given and that all relevant provisions of this Act or any order or notice thereunder were duly complied with by such tenant in respect of such improvement.

(4) Where the tenant of a tenement executes work on such tenement in pursuance of an order of a sanitary authority under the Public Health Acts, 1878 to 1931, or the Housing of the Working Classes (Ireland) Acts, 1890 to 1921, and such work is an improvement within the meaning of this Act, such tenant shall not be entitled to an improvement certificate under the foregoing provisions of this section in respect of such improvement, but shall be entitled to obtain from such sanitary authority, within six months after the due completion of such work in accordance with such order, a certificate (in this Act referred to as a sanitary improvement certificate) in writing in the prescribed form certifying that such work was executed in pursuance of and completed in accordance with an order of such sanitary authority.

(5) A sanitary improvement certificate shall, as against the landlord of the tenement to which it relates, be prima facie evidence of the matters which such certificate purports to certify.

(6) A landlord or sanitary authority to whom an application for an improvement certificate or sanitary improvement certificate (as the case may be) is made under this section may demand, as a condition of the giving of such certificate, the payment to him or them by the tenant by whom such application is made of the expenses, calculated according to the prescribed scale, incurred by him or them in relation to the giving of such certificate.