leasehold property (temporary provisions) act, 1951

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OCT. 1951 STATUTES AND STATUTORY INSTRUMENTS 465 heavy penalties recoverable by the first person to recover judgment against any individual who sits and votes in the Commons while disqualified. A less notable instance occurs in the Bread Acts of 1822 and 1886 where the award is discretionary, only half of the penalty being recoverable by the informer, the other half going to the relief of the county or borough rate. More recently, the Companies Act, 1948, s. 444 (repeating a similar provision in the earlier Act of 1929) enables the Court, when imposing any fine under the Act, to direct that the whole or any part of such fine be paid as a reward to the person on whose information or at whose suit the fine is recovered. The provision in any statute for making financial reward, whether discretionary or as of right, to an informer is nothing less than enlisting the motive of private greed to enforce the law. That such a system is objectionable goes without saying. This blot on our law by the continued existence of the common informer procedure is now happily practically abolished, and it should not be forgotten that it is to the assiduousness of a private member that this long overdue measure of reform is due. J. LL. J. EDWARDS. LEASEHOLD PROPERTY (TEMPORARY PROVISIONS) ACT, 1951 THIS Act became law on June 24, 1951. It is, as its title indicates, a temporary expedient to afford interim relief to two classes of tenants, pending the promised enactment of more sweeping and permanent measures of reform in the law of landlord and tenant. Although the Leasehold Committee published its Final Report (Cmd. 7982) in June last year no final decisions appear to have been reached on its recommendations. In the meantime this branch of the law is further embroiled by another piece of temporary but highly complex legislation. It is indeed testimony to the overwhelmingly complicated state to which this branch of law has been reduced that in order to afford relief in two relatively limited classes of case it has proved necessary to produce an Act comprising twenty-one elaborate sections and two schedules extending to twenty . pages in the King’s printer’s copy. Dwelling-houses. The first class of tenants which the Act is designed to assist comprises those who occupy dwelling-houses under long terms of years (originally exceeding twenty-one years) and which would, but for the Act, expire within two years next after the commencement of the Act. Such leases are normally granted at a ground rent, so that at the expiry of the term the tenant would not be entitled to claim the protection of the Rent Acts. Provided the tenant or

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Page 1: Leasehold Property (Temporary Provisions) Act, 1951

OCT. 1951 STATUTES AND STATUTORY INSTRUMENTS 465

heavy penalties recoverable by the first person to recover judgment against any individual who sits and votes in the Commons while disqualified. A less notable instance occurs in the Bread Acts of 1822 and 1886 where the award is discretionary, only half of the penalty being recoverable by the informer, the other half going to the relief of the county or borough rate. More recently, the Companies Act, 1948, s. 444 (repeating a similar provision in the earlier Act of 1929) enables the Court, when imposing any fine under the Act, to direct that the whole or any part of such fine be paid as a reward to the person on whose information or a t whose suit the fine is recovered.

The provision in any statute for making financial reward, whether discretionary or as of right, to an informer is nothing less than enlisting the motive of private greed to enforce the law. That such a system is objectionable goes without saying. This blot on our law by the continued existence of the common informer procedure is now happily practically abolished, and it should not be forgotten that i t is to the assiduousness of a private member that this long overdue measure of reform is due.

J. LL. J. EDWARDS.

LEASEHOLD PROPERTY (TEMPORARY PROVISIONS) ACT, 1951

THIS Act became law on June 24, 1951. It is, as its title indicates, a temporary expedient to afford interim relief to two classes of tenants, pending the promised enactment of more sweeping and permanent measures of reform in the law of landlord and tenant. Although the Leasehold Committee published its Final Report (Cmd. 7982) in June last year no final decisions appear to have been reached on its recommendations. I n the meantime this branch of the law is further embroiled by another piece of temporary but highly complex legislation. It is indeed testimony to the overwhelmingly complicated state to which this branch of law has been reduced that in order to afford relief in two relatively limited classes of case it has proved necessary to produce an Act comprising twenty-one elaborate sections and two schedules extending to twenty

. pages in the King’s printer’s copy.

Dwelling-houses. The first class of tenants which the Act is designed to assist

comprises those who occupy dwelling-houses under long terms of years (originally exceeding twenty-one years) and which would, but for the Act, expire within two years next after the commencement of the Act. Such leases are normally granted a t a ground rent, so that a t the expiry of the term the tenant would not be entitled to claim the protection of the Rent Acts. Provided the tenant or

Page 2: Leasehold Property (Temporary Provisions) Act, 1951

466 THE M0DER.N LAW REVIEW VOL. 14

a member of his family was residing in the house immediately before the date of expiry of the lease the Act automatically extends the term until two years after the commencement of the Act, i.e., until June 24, 1053 (s. 1) . A similar extension is also granted to such tenants whose leases have expired prior to the commencement of the Act provided they (or a member of their family) have contrived to remain in possession until the commencement of the Act without any new agreement having been made, or in pursuance of a new tenancy or agreement a t the old rent, without a premium, and expiring within two years from the commencement of the Act. In this case the tenancy is also deemed to have continued up to the commencement of the Act as well as being extended for two years thereafter (s. 2).

The landlord is entitled to determine the extended tenancy if the tenant assigns the tenancy or sublets the whole (6. 8) , and the tenant can give a month’s notice to determine the tenancy (s. 4).

Much controversy raged during the passage of the Bill as to the extent to which the landlord should be deprived of his right to enforce the covenants of the lease. The Act prevents the forfeiture of the extended tenancy save for non-payment of rent or rates, failure to insure, or user for illegal or immoral purposes. Nor can damages be claimed while the tenancy continues, though the remedy of injunction is preserved and can be claimed in the county court as well as the High Court (8 . 5).

The landlord is given a right to enter to carry out essential repairs (s. 0 ) ; and there are special provisions for the protection of sub-tenants (9. 7).

Shops. Part I1 of the Act provides for the renewal of tenancies of

shops. Such renewal is not automatic but application has to be made to the county court. The right to apply is conferred on tenants whose tenancies expire immediately before or within two years after the commencement of the Act ( 8 . 10). The court has power, if in all the circumstances it appears reasonable to do so, to grant an extension not exceeding one year; and if the tenancy thus extended expires within the two years from the commencement of the Act, a further renewal may be granted (s. 12). The rent and terms of the new tenancy are to be such as the court thinks reasonable, disregarding any considerations arising from the personal circumstances of the parties (s. 12 (I)).

In certain cases the power of renewal is excluded, e.g., where there has been a breach of covenant and the court is satisfied that a new tenancy ought not to be granted; or where the landlord has offered reasonable alternative accommodation ; or (familiar echo of the Rent Acts) where greater hardship would be caused by granting a new tenancy than by refusing it (s. 12 (8) ).

There are also provisions for correlating Part I1 of the Act with

Page 3: Leasehold Property (Temporary Provisions) Act, 1951

OCT. 1951 STATUTES AND STATUTORY INSTRUMENTS 467

the Landlord and Tenant Act, 1927 (s. 14). No appeal lies under Part I1 save by leave of the court.

The Act applies to the Crown apart from special exceptions (see sections 16 (2), 12 (8) ( d ) ).

Such then is the bare skeleton of the new Act. That its tortuous provisions will eliminate some cases of hardship is obvious; yet it is equally clear that it will. be productive in other instances of fresh injustices to landlords and will certainly create new forms of abuse, such as the exploiting of the fag-ends of leases by tenants or assignees of tenants who have retained occupation of part of the premises. It is melancholy to reflect that every fresh enact- ment on this topic only seems to render more distant than ever the day when some comprehensive measure may be introduced to rationalise this branch of the law by providing a consistent and intelligible scheme of protection which will hold the scales evenly between landlord and tenant.

DENNIS LLOYD.

INDUSTRIAL DISPUTES ORDER, 1951

THE revocation of the Conditions of Employment and National Arbitration Orders, 1940 to 1950,' and their replacement by the Industrial Disputes Order, 1951,a is an important event in the development of British labour law. It is the first major piece of labour legislation since the repeal of the Trade Disputes and Trade Union Act, 1927, by the Trade Disputes and Trade Union Act, 1946. While, however, the Act of 1046 was a controversial measure, the Industrial Disputes Order, like the Orders which it revokes, rests upon an understanding between the British Employers' Confederation, the General Council of the Trades Union Congress and the representatives of the nationalised industries.s It received a unanimous welcome when it was announced by the Minister of Labour and National Service in the House of Commons, and the spokesman of the Opposition promised that the Order would be given ' a fair wind '.4 The Order introduces some fundamental changes in the principles of labour law, but the Minister emphasised its provisional character. ' I should think ', he said, ' that where we are dealing with a matter affecting the lives of many people, it

1 S.R. & 0. 1940 No. 1305, as amended by S.R. & 0. 1941 No. 1854; 1942 Nos. 1073 and 9678; 1944 No. 1437; and S.I. 1050 No. 1309.

2 S.I. 1951 No. 1976. I t is subject to ' negative ' Parliamentary procedure. laid' for forty sitting days on August, 2, but, since Parliament adjourned that day, it will be Rubject to a 'prayer for thirty-nine sitting days after Parliament ie-assemblcs. The Second Schedule contain8 some transitional provisions.

3 Statement by the Minister of Labour and National Service in the H o u ~ e of Commons; 490 Hamard 3301. The Minister added (col. 9309) ' that if at any time either side wish the Order to be discontinued it will be reviewed immediately I. Like its predecessor, the new Order will have to rest not only on an original bnt on a continued agreement.

The Order came into force on August 14. I t was

4 Mr. R. A. Butler, ibid., col. 3902.