Compulsory Purchase (Vesting Declarations) Act 1981

11 Recovery of compensation overpaid

(1) This section applies where after the execution of a general vesting declaration a person ("the claimant") claims compensation in respect of the acquisition by the acquiring authority of an interest in land by virtue of the declaration, and the authority pay compensation in respect of that interest.

(2) If it is shown that—

(a) the land, or the claimant's interest in it, was subject to an incumbrance which was not disclosed in the particulars of his claim, and

(b) that by reason of that incumbrance the compensation paid exceeded the compensation to which the claimant was entitled in respect of that interest,

the acquiring authority may recover from the claimant the amount of the excess.

(3) If it is shown that the claimant was not entitled to the interest, either in the whole or in part of the land to which the claim related, the acquiring authority may recover from the claimant an amount equal to the compensation paid, or as the case may be an amount equal to so much of that compensation as, on a proper apportionment, is attributable to that part of the land.

(4) Any question arising under subsection (2) or (3) above as to—

(a) the amount of the compensation to which the claimant was entitled in respect of an interest in land, or

(b) the apportionment of any compensation paid,

shall be referred to and determined by the Lands Tribunal; and in relation to the determination of the question section 2 of the [1961 c. 33.] Land Compensation Act 1961 (public sittings, limitation on number of expert witnesses and other matters) shall apply subject to any necessary modifications.

(5) Subject to subsection (4) above, any amount recoverable by the acquiring authority under this section shall be recoverable in any court of competent jurisdiction.

(6) If the acquiring authority are a local authority (as defined in section 290(1) of the [1971 c. 78.] Town and Country Planning Act 1971) any sum recovered by them under this section shall be applied towards the repayment of any debt incurred in acquiring or redeveloping the land, or if no debt was so incurred shall be paid into the account out of which sums incurred in the acquisition of that land were paid.