The court considered s12 of the Leasehold Property (Temporary Provisions) Act 1951 which gave the court power to grant a tenancy ‘at such rent and on such terms and conditions as the court in all the circumstances thinks reasonable’.
Held: That that did not mean the rent which the property would fetch if offered in the open market as property to let.
The words ‘such rent . . as the court in all the circumstances thinks reasonable’ gave to the court a wide discretion
Evershed MR said: ‘I think that I have now covered the matter of greater hardship, and there remains only the question (which I have left till last though perhaps logically I should have dealt with it first) under section 12 (3) (a) that the tenants have broken terms and conditions of the previous leases. I have left the matter till last, because it needs a reference to the further evidence. I am still confining myself to St Stephens Street. In July, 1951, a schedule of dilapidations, which extended over many pages and was embraced under no fewer than 127 heads, was served upon the tenants. The judge found that there had been breaches of the repairing covenant. A reference to para (a) in subsection (3) shows that that of itself does not suffice, because a court must also be satisfied, in view of the nature and circumstances of the breach, that a new tenancy ought not to be granted. Again I refrain from attempting any exhaustive exposition of the significance of that phrase, but plainly the second half of the paragraph involves the judge in the duty of considering whether, if the tenancy is extended as suggested, the breach is such as will really prejudice the proper interests of the landlord.’
Judges:
Evershed MR, Jenkins and Hodson LJJ
Citations:
[1952] 2 QB 258
Statutes:
Leasehold Property (Temporary Provisions) Act 1951 12(3(
Jurisdiction:
England and Wales
Landlord and Tenant
Updated: 14 May 2022; Ref: scu.656665