8.—(1) Where the Board has made an order under section 4(3) in favour of a landlord of controlled premises, the following provisions with regard to quantum of compensation to be awarded by the Board to any tenant and subtenant shall apply:(a) | in the case of controlled premises or any part thereof occupied or used for commercial purposes the amount of compensation to be awarded shall be such amount as the Board considers fair and reasonable except that any amount of compensation so awarded shall not be less than the total of 8 years’ rent paid over the period of the 8 years preceding the date of the application by the landlord to the Board; | (b) | in the case of controlled premises or any part thereof that are occupied or used for residential purposes the amount of compensation to be awarded shall be such amount as the Board considers fair and reasonable except that any amount of compensation, so awarded, shall not be less than the total of 6 years’ rent paid over the period of the 6 years preceding the date of the application by the landlord to the Board; and | (c) | in the case of controlled premises or any part thereof which when originally let consisted of vacant land but on which there has since been erected a building or buildings of a temporary character, the amount shall not be less than the total of 12 years’ ground rental and the value of the building or buildings thereon as determined by the Board as being the market value at the date of the application by the landlord, or the cost of demolishing the building or buildings and transporting the materials derived from such demolition to another site, as the Board may reasonably allow. |
(2) In determining the amount of compensation to be awarded to a tenant and sub-tenant under this section, the Board, without prejudice to its right to consider any other relevant matter, shall have regard to the following matters:(a) | in the case of controlled premises used or occupied for commercial purposes —(i) | loss of income attributable to the recovery of possession of the controlled premises; | (ii) | loss of goodwill, if any, attributable to any change of location of the tenant’s business; | (iii) | cost of removal to another site; | (iv) | annual rent paid for the controlled premises; and | (v) | location and siting of the controlled premises; and |
| (b) | in the case of controlled premises, used or occupied for residential purposes, paragraph (a)(iii), (iv) and (v) only shall be taken into account. |
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(3) In apportioning an amount of compensation as between a tenant and his sub-tenants who are entitled to receive compensation under this Act, the Board may take into account the following matters:(a) | the area of the floor space occupied or used by the tenant and each of his sub-tenants and the purpose for which the area has been used by the tenant and each of his sub-tenants; and | (b) | the amount of rent paid by the tenant and each of his sub-tenants less any amount of rent received by the tenant and each of his sub-tenants during the currency of the subletting. [14/72] |
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(4) Where controlled premises, or any part thereof, are occupied or used partly for commercial purposes and partly for residential purposes, the amount of compensation to be awarded shall be such amount as the Board considers fair and reasonable under subsection (1) and that amount shall be apportioned by the Board in the manner described in subsection (5). |
(5) Where, in respect of controlled premises that are occupied or used partly for commercial purposes and partly for residential purposes, there is —(a) | no express condition in writing prescribing user of the premises; | (b) | no formal lease or tenancy agreement or other document evidencing user; or | (c) | a formal lease or tenancy agreement but the conditions thereof have, by the consent of the landlord and tenant, been modified so as to permit the controlled premises to be used partly for commercial purposes and partly for residential purposes, |
the Board, when determining whether the controlled premises fall within subsection (1)(a), (b) or (c), shall have regard to the purposes for which the premises have been occupied or used with the consent of the landlord and apportion a part of the rent paid by the tenant as the rent paid in respect of the portion of the controlled premises used for commercial purposes and the balance of the rent paid by the tenant as the rent paid in respect of the portion of the controlled premises used for residential purposes. |
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(6) For the purposes of this section, “commercial purposes” means controlled premises used or occupied for the purposes of carrying on any business, trade, profession or vocation and includes the use or occupation of any controlled premises as a school or club or other like institution or association; and “residential purposes” means controlled premises used or occupied for purposes of human habitation. [7 |
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