Agriculture Act 1986

Settlement of tenant’s claim on termination of lease E+W+S

11 (1) Subject to this paragraph, any claim arising under paragraph 2 above shall be determined— E+W+S

(a) in the case of an agricultural holding within the meaning of [F1 the 1991 Act] by arbitration under that Act or, under [F1 section 60(2)] of that Act, by the Scottish Land Court;

(b) in any other case, by the Scottish Land Court,

and no such claim shall be enforceable unless before the expiry of the period of 2 months from the termination of the lease the tenant has served notice in writing on the landlord of his intention to make the claim, specifying the nature of the claim.

(2) The landlord and tenant may within the period of 8 months from the termination of the lease by agreement in writing settle the claim but where the claim has not been settled during that period it shall be determined as provided in sub-paragraph (1) above.

(3) Where a tenant lawfully remains in occupation of part of the tenancy after the termination of the lease, the references in sub-paragraphs (1) and (2) above to the termination of the lease shall be construed as references to the termination of the occupation.

(4) In the case of an arbitration under this paragraph, [F2 section 60(1) (or, where the circumstances require, sections 64 and 80) of the 1991 Act] (arbitrations) shall apply as if the requirements of this paragraph were requirements of that Act, but [F2 paragraph 14 of Schedule 7] to that Act (arbitration awards to fix day for payment not later than one month after award) shall have effect for the purposes of this paragraph with the substitution for the words “one month” of the words “three months”.

(5) In the case of an arbitration under this paragraph, [F3 section 50 of the 1991 Act](determination of claims for compensation where landlord’s interest is divided) shall apply, where the circumstances require, as if compensation payable under paragraph 2 above were compensation payable under that Act.

(6) Where—

(a) before the termination of the lease of any land the landlord and tenant have agreed in writing the amount of the standard quota for the land or the tenant’s fraction or the value of milk quota which is to be used for the purpose of calculating the payment to which the tenant will be entitled under this Schedule on the termination of the lease; or

(b) the standard quota or the tenant’s fraction has been determined by arbitration in pursuance of paragraph 10 above,

the arbiter or, as the case may be, the Scottish Land Court in determining the claim under this paragraph shall, subject to sub-paragraph (7) below, award payment in accordance with that agreement or determination.

(7) Where it appears to the arbiter or, as the case may be, the Scottish Land Court that any circumstances relevant to the agreement or determination mentioned in sub-paragraph (6) above were materially different at the time of the termination of the lease from those at the time the agreement or determination was made, he shall disregard so much of the agreement or determination as appears to him to be affected by the change in circumstances.

Textual Amendments

F1 Words in Sch. 2 para. 11(1)(a) substituted (25.9.1991) by Agricultural Holdings (Scotland) Act 1991 (c. 55, SIF 2:3), ss. 88(1), 89(2), Sch. 11 para. 52(a)(with s. 45(3), Sch. 12 para. 3)

F2 Words in Sch. 2 para. 11(4) substituted (25.9.1991) by Agricultural Holdings (Scotland) Act 1991 (c. 55, SIF 2:3), ss. 88(1), 89(2), Sch. 11 para. 52(b)(i)(with s. 45(3), Sch. 12 para. 3)

F3 Words in Sch. 2 para. 11(5) substituted (25.9.1991) by Agricultural Holdings (Scotland) Act 1991 (c. 55, SIF 2:3), ss. 88(1), 89(2), Sch. 11 para. 52(c)(with s. 45(3), Sch. 12 para. 3)