Cap. 125 Art. 11Compensation payable in respect of requisitioned building.

(1) Subject as hereinafter provided, the compensation payable in respect of the requisition of a building, except for buildings used for a residential purpose, shall be the aggregate of the following sums, that is to say-

(a) a sum equal to the rent which might reasonably be expected to be payable by a tenant in occupation of the building during the period for which possession of the building is retained by virtue of the provisions of this requisition, as a dwelling house within the meaning of the Rent Restriction (Dwelling Houses) Ordinance the rent shall not exceed the fair rent as defined in article 2 of the aforesaid Ordinance;

(b) a sum equal to the cost of making good any damage to the building which may have occurred during the period in which possession thereof under requisition was retained (except in so far as the damage has been made good during that period by the occupant of the requisitioned premises or by a person acting on behalf of the Director), no account being taken of damage which, under the provisions of this Act, is the responsibility of the requisitionee;

(c) a sum equal to the amount of expenses reasonably incurred, otherwise than on behalf of the Director, for the purpose of compliance with any directions given by or on behalf of the Director in connection with the taking possession of the building, but without prejudice to the provisions of article 3(5).

(2) Any compensation under subarticle (1)(a) shall be deemed to accrue due from day to day during the period in which possession of the building is held in the exercise of the powers vested in the Director by this Act, shall be apportionable in respect of time accordingly; and shall be paid to the person who for the time being would be entitled to occupy the building but for the fact that it is requisitioned; but the provisions of this subarticle shall not operate so as to require the making of payments by the Director at intervals of less than three months.

(3) Any compensation under subarticle (1)(b) shall accrue due at the end of the period in which possession of the building is retained in the exercise of the powers vested in the Director by this Act, and shall be paid to the person who is then the beneficial owner of the building.

(4) Any compensation under subarticle (1)(c) shall accrue due at the time when expenses in respect of which compensation is payable are incurred, and shall be paid to the person by whom or on whose behalf those expenses were incurred.

(5) The compensation that shall be payable in respect of the requisition of a building used for a residential purpose shall, upon the demand by the person holding a title over the building, be reviewed to an amount not exceeding two percent (2%) per annum of the free and open market value of the dwelling-house on 1 January of the year in which the application is filed. appeal in cases allowed by that Ordinance:

Provided that, without prejudice to the application of the Controlled Residential Leases Reform Act, 2021,in respect of dwelling houses within the meaning of the Rent Restriction

(Dwelling Houses) Ordinance, possession of which has been taken by the requisitioning authority before the 22nd February, 1946 and, at the time of the hereunder mentioned application, is still retained by that authority, the requisitioning authority or the requisitionee may at any time apply to the said Board for the assessment of the fair rent as defined in article 2 of the last mentioned Ordinance, and such fair rent shall be the compensation payable under article 11(1)(a) in respect of that possession as from the date of service of the application on the requisitionee or his representative or, as the case may be, on the requisitioning authority.

(2) Compensation under article 11(1)(b) and (c) shall, in case of disagreement, be assessed by the First Hall of the Civil Court.