Water Resources Act 1991

63 Secretary of State to indemnify Authority in certain cases

(1) Where—

(a) the Authority is liable under section 60 above to pay damages to any person in consequence of the grant or variation of a licence in compliance with a direction given by the Secretary of State; and

(b) the Authority pay to that person any sum in satisfaction of that liability,

then, whether an action for recovery of those damages has been brought or not, the Secretary of State may, if he thinks fit, pay to the Authority the whole or such part as he considers appropriate of the relevant amount.

(2) If—

(a) proposals for revoking or varying the licence, in a case falling within subsection (1) above, are formulated by the Authority, or an application with respect to any licence is made under section 55 above;

(b) in consequence of those proposals or that application, the licence is revoked or varied; and

(c) compensation in respect of the revocation or variation is payable by the Authority under section 61 above,

the Secretary of State may, if he thinks fit, pay to the Authority the whole or such part as he considers appropriate of the relevant amount.

(3) Where—

(a) the Secretary of State determines under section 55 above—

(i) that a licence granted in compliance with a direction given by the Secretary of State shall be revoked or varied; or

(ii) that a licence shall not be revoked or varied;

and

(b) in consequence of that determination, compensation is payable by the Authority under section 62 above,

the Secretary of State may, if he thinks fit, pay to the Authority the whole or such part as he considers appropriate of the relevant amount.

(4) In this section “the relevant amount” means—

(a) for the purposes of subsection (1) above, the amount of the sum paid by the Authority and, if an action has been brought against the Authority in respect of the liability mentioned in that subsection, the amount of any costs reasonably incurred by the Authority in connection with the action (including any costs of the plaintiff which the Authority was required to pay); and

(b) for the purposes of subsections (2) and (3) above, the amount of the compensation and, if any question relating to that compensation is referred to the Lands Tribunal, the amount of any costs reasonably incurred by the Authority in connection with that reference (including any costs of the claimant which the Authority is required to pay).