HL Deb 12 April 1949 vol 161 cc1133-6

Adjustments, where s. 1 applies, for premiums paid before commencement of Act

1. Where on an application under section one of this Act it appears to the Tribunal that before the commencement of this Act any premium has been paid (whether lawfully required or not) in respect of the grant, continuance or renewal of a tenancy of the dwelling-house to which the application relates, whether by the tenant or by a previous tenant of the dwelling-house, and has not been fully repaid or recovered, the Tribunal shall, if the tenant so requires, certify that this Part of this Schedule applies, and thereupon—

  1. (a) except in a case falling within the next following sub-paragraph, the rent payable shall be limited in accordance with paragraph 2 of this Schedule;
  2. (b) where the Tribunal are satisfied that since the premium was paid and before the twenty-fifth day of March, nineteen hundred and forty-nine, the reversion had been conveyed or assigned for a consideration in money or money's worth, and so certify, the tenant of the dwelling-house at the time of the Tribunal's determination shall be entitled to recover from the person to whom the premium was paid such amount, if any, as is provided by paragraph 3 of this Schedule:
Provided that this paragraph shall not have effect where the Tribunal are satisfied that since the said grant, continuance or renewal the landlord has granted a tenancy of the dwelling-house under which as against the landlord, a person became entitled to possession other than the person who was so entitled to possession of the dwelling-house immediately before that tenancy began.

2.—(1) Subject to the provisions of this paragraph, where sub-paragraph (a) of the last foregoing paragraph has effect, the rent payable by the tenant, or by any subsequent tenant, for any rent-period beginning after the Tribunal have issued their certificate and before the relevant date, shall not, save as hereinafter provided, exceed the reasonable rent less the rental equivalent of the premium.

(2) Where under the principal Acts the landlord is permitted to increase the rent by reason of any circumstances arising after the determination by the Tribunal of the reasonable rent, then if the landlord has power so to do consistently with the contract of tenancy and the principal Acts he may recover the amount of the increase in addition to the amount, if any, which he may recover under the last foregoing sub-paragraph.

(3) Nothing in the foregoing provisions of this paragraph shall affect the rent payable for any rent-period after the landlord has granted a tenancy of the dwelling-house under which, as against the landlord, a person became entitled to possession other than the person who was so entitled to possession of the dwelling-house immediately before that tenancy began.

3.—(1) Where, in a case in which the Tribunal issue a certificate under sub-paragraph (b) of paragraph 1 of this Schedule, the existing rent is equal to or greater than the reasonable rent, the tenant shall be entitled to recover as mentioned in the said sub-paragraph (b) an amount equal to the product of—

  1. (a) the rental equivalent of the premium, and
  2. (b) the number of complete rent-periods in the period beginning with the date of the Tribunal's determination under section one of this Act and ending with the relevant date.

(2) Where, in any such case as aforesaid, the existing rent is less than the reasonable rent, but the difference between them is less than the rental equivalent of the premium, the tenant shall be entitled to recover as mentioned in the said sub-paragraph (b) an amount equal to the product of—

  1. (a) the amount by which the rental equivalent of the premium exceeds the difference between the reasonable rent and the existing rent, and
  2. (b) the number of complete rent-periods mentioned in head (b) of the last foregoing sub-paragraph.

(3) Where the rent payable under the tenancy is a progressive rent, the foregoing provisions of this"

The noble Lord said: I beg to move this Amendment, about which I have already spoken.

Amendment moved— Page 17, line 3, leave out from beginning to ("paragraph") in line 28 and insert the said new Part I.—(Lord Pakenham.)

LORD LLEWELLIN moved, as an Amendment to the proposed Amendment, after "Act" (where that word first occurs) to insert: made within twelve months from the date of the commencement of this Act. The noble Lord said: As your Lordships will have seen, my noble friend Lord Buckmaster and I have on the Paper an Amendment to the Government Amendment, and this is probably a convenient moment for me to speak on that Amendment to the Amendment. My reason for moving this Amendment is that, if there have been any of these cases, they should be apparent; and if anybody has been aggrieved, twelve months, which is the period under the Municipal Corporations Act for bringing actions against public authorities, seems to me to be sufficient time. Therefore, I move this Amendment to the Amendment, believing that, as the whole of the noble Lord's Amendment is marked "Transitional Provisions as to Premiums," he will think a sufficient transitional period is the twelve months that I propose. I beg to move.

Amendment to Amendment moved— Paragraph 1, line 1, after ("Act") insert ("made within twelve months from the date of the commencement of this Act").—(Lord Llewellin.)

LORD PAKENHAM

We feel that the reasoning is good, both now and on the previous occasion when this was discussed, and we are prepared to accept this Amendment.

VISCOUNT BUCKMASTER

I would just like to thank the noble Lord. I will not weary the Committee with the arguments I would have put forward in favour of the Amendment.

On Question, Amendment to proposed Amendment agreed to.

LORD LLEWELLIN

had given Notice to move, as an Amendment to the proposed Amendment, in paragraph 1, after "recovered" to insert: under section eight of the Increase of Rent and Mortgage Interest (Restrictions) Act, 1920. The noble Lord said: I do not intend to move this further Amendment to the Amendment. It was material before the noble Lord put down his Amendment, which covers the point I had put down elswhere in the Bill. I am obliged for that, as well as for the acceptance of my last Amendment.

On Question, Amendment, as amended, agreed to.

LORD PAKENHAM moved to leave out paragraphs 4 to 6 and to insert: (4) In this paragraph the expression 'existing rent' means the rent which would be payable by the tenant, apart from the provisions of section one of this Act and of this Schedule, for the rent-period comprising the date of the Tribunal's determination of the reasonable rent. 4.—(1) Notwithstanding anything contained in the principal Acts, where the Tribunal issue a certificate under paragraph 1 of this Schedule with respect to any premium, so much of that premium as at the time when the certificate is issued has not been repaid or recovered shall not thereafter be recoverable otherwise than under the foregoing provisions of this Schedule. (2) Save as provided in the last foregoing sub-paragraph, nothing in this Part of this Schedule shall prejudice any criminal proceedings against a person for having required any payment or the giving of any consideration in contravention of section eight of the Increase of Rent and Mortgage Interest (Restrictions) Act, 1920.

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