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BUSINESS TENANCIES ACT (NORTHERN IRELAND) 1964 - SECT 37

Rights of parties on service of notice of undertaking.

37. Where a tenant has served a notice of improvement under section 34(1) on
his landlord and that landlord has, within three months after such service,
served on the tenant a notice of undertaking in respect of the
notice of improvement and no superior landlord has within such three months
served on the tenant a notice of objection in respect of the
notice of improvement, the following provisions shall have effect, that is to
say:

(a)the tenant may, by notice served on his landlord within one month after the
service of the notice of undertaking, either accept the notice of undertaking,
or withdraw the notice of improvement served by him, or where the
notice of undertaking specifies an increase of rent, object to the amount of
that increase;

(b)where the tenant does not within the said month serve any notice under
paragraph (a) or the tenant duly accepts the notice of undertaking,
the landlord shall within a reasonable time after the expiration of such
month, execute and complete at his own expense and in accordance with that
notice of undertaking the improvement mentioned therein;

(c)if the tenant duly withdraws in accordance with this section the
notice of improvement served by him, that notice shall for all purposes be
deemed never to have been served;

(d)where the tenant duly objects in accordance with this section to the amount
of the increase of rent specified in the notice of undertaking, then

(i)the landlord and the tenant may either fix by agreement the amount of the
increase of rent or agree that the amount of the increase of rent shall be
fixed by the Lands Tribunal and thereupon the notice of undertaking shall have
effect in accordance with that agreement and be deemed to have been duly
accepted in accordance with this section by the tenant; or

(ii)either the landlord or the tenant may apply to the Lands Tribunal and on
the hearing of the application the Lands Tribunal may, as it shall think
proper, either fix the amount of the increase of rent or deem the
notice of undertaking to be a notice of objection and deal with it
accordingly;

(e)where the notice of undertaking is, by its terms or by subsequent
agreement, made subject to an increase of rent of an amount to be fixed by the
Lands Tribunal, the landlord or tenant may, when the improvement has been duly
executed by the landlord, apply to the Lands Tribunal to fix the amount of the
increase of rent and thereupon the Lands Tribunal shall fix that amount
accordingly;

(f)upon the completion of the improvement by the landlord in accordance with
the notice of undertaking and this section, the rent payable by the tenant to
such landlord shall, as from the date of the completion, be increased in
accordance with that notice of undertaking or the order of the Lands Tribunal
(as the case may be), and any dispute as to the amount or commencement of or
otherwise in relation to such increase shall be referred to and determined by
the Lands Tribunal on the application of the landlord or tenant;

(g)where the landlord is bound under this section or under section 36(4) to
execute an improvement in accordance with a notice of undertaking but fails or
neglects to execute and complete that improvement within a reasonable time the
tenant may apply to the Lands Tribunal and the Lands Tribunal may treat the
notice of undertaking as a notice of objection and deal with it accordingly.

© 1964 Crown Copyright

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