§ [No. 4]
§ After Clause 9, insert the following new clause—
1688§ Partnerships
§ ".After section 41 of the Act of 1954 there shall be inserted the following section:—
§ '41 A.—(1) The following provisions of this section shall apply where—
- (a) a tenancy is held jointly by two or more persons (in this section referred to as the joint tenants); and
- (b) the property comprised in the tenancy is or includes premises occupied for the purposes of a business; and
- (c) the business (or some other business) was at some time during the existence of the tenancy carried on in partnership by all the persons who were then the joint tenants or by those and other persons and the joint tenants' interest in the premises was then partnership property; and
- (d) the business is carried on (whether alone or in partnership with other persons) by one or some only of the joint tenants and no part of the property comprised in the tenancy is occupied, in right of the tenancy, for the purposes of a business carried on (whether alone or in partnership with other persons) by the other or others.
§ (2) In the following provisions of this section those of the joint tenants who for the time being carry on the business are referred to as the business tenants and the others as the other joint tenants.
§ (3) Any notice given by the business tenants which, had it been given by all the joint tenants, would have been—
- (a) a tenant's request for a new tenancy made in accordance with section 26 of this Act; or
- (b) a notice under subsection (1) or subsection (2) of section 27 of this Act;
§ (4) A notice given by the landlord to the business tenants which, had it been given to all the joint tenants, would have been a notice under section 25 of this Act shall be treated as such a notice, and references in that section to the tenant shall be construed accordingly.
§ (5) An application under section 24 (1) of this Act for a new tenancy may, instead of being made by all the joint tenants, be made by the business tenants alone; and where it is so made—
- (a) this Part of this Act shall have effect, in relation to it, as if the references therein to the tenant included references to the business tenants alone; and
- (b) the business tenants shall be liable, to the exclusion of the other joint tenants, for the payment of rent and the discharge of any other obligation under the current tenancy for any rental period beginning after the date specified in the landlord's notice under section 25 of this Act or, as the case may be, beginning on or after the dates specified in their request for a new tenancy.
§ (6) Where the court makes an order under section 29 (1) of this Act for the grant of a new tenancy on an application made by the business tenants it may order the grant to be made to them or to them jointly with the persons carrying on the business in partnership with them, and may order the grant to be made subject to the satisfaction, within a time specified by the order, of such conditions as to guarantors, sureties or otherwise as appear to the court equitable, having regard to the omission of the other joint tenants from the persons who will be the tenant under the new tenancy.
§ (7) The business tenants shall be entitled to recover any amount payable by way of compensation under section 37 or section 59 of this Act.'"
§ THE LORD CHANCELLORMy Lords, Amendment No. 4 is a new clause which enables a business tenancy to be granted to one or more joint tenants who are the surviving partners in a partnership carrying on business on the premises where the current tenancy is held by them together with retired partners. The new tenancy in such cases can be granted to the surviving joint tenants alone or together with other partners in the business. The Amendment remedies a defect in the law disclosed in Jacobs v. Chaudhuri last year and referred to by the Law Commission in their Report. In that case the Court of Appeal held that where a lease has been granted to two partners and the partnership had been dissolved the surviving partner could not obtain a new tenancy under Part II of the 1954 Act. The clause, which was drafted in consultation with the Law Commission, provides, broadly speaking, that joint tenants who are surviving partners are for the relevant purposes of Part II of the 1954 Act to be treated as if they were the tenants on whom the statutory rights are conferred. If your Lordships require any further details of the provision I shall be happy to give them. I beg to move that this House doth agree with the Commons in their Amendment No. 4.
§ Moved, That this House doth agree with the Commons in their Amendment No. 4.—(The Lord Chancellor)
§ On Question, Motion agreed to.