Cap. 199 Art. 3Change of conditions of lease.

(1) Subject to the provisions of this Act, where a lessor desires to make any change in the conditions of a lease on the expiration of its term, unless an agreement in writing is reached with the tenant, he shall apply to the Board by means of an application containing in detail the proposed changes, filed not later than three months before the date on which the term expires.

(2) The Board shall not approve any new conditions contained in any application if it is proved that -

(a) such new conditions would be justified only in view of improvements of a permanent character carried out in the agricultural land, during the period of eight years immediately preceding the date of termination, by the tenant himself or by a member of the family, without their having been under any obligation to effect those improvements; or

(b) such new conditions would be justified only in view of improvements of a permanent character carried out in the agricultural land by the use of funds provided by the Government or on behalf of the Government in the form of a grant or in any other form which, subject to compliance with the conditions governing the provision of such funds, does not involve repayment.

(2A) When the change of the conditions of lease under this article consists in an increase in the rent the following provisions shall apply:

(a) the owner in his application shall indicate by how much the rent shall increase;

(b) the tenant on his part shall indicate in his reply how much the fair rent should be in his opinion;

(c) in its final judgment the Board shall determine the fair rent taking into account the value of the agricultural land when valued as agricultural land for agricultural use obtainable on the open market, the means of the tenant, the circumstances and the condition of the agricultural land and any burden that is disproportionate to the lessor;

(d) the Board may establish that any increase in rent shall be gradual;

(e) the rent revised by the Board shall not exceed one point five per cent (1.5%) per annum of the value of the land free and unencumbered made in accordance with paragraph (c);

(f) when the agricultural land includes a farmhouse used by the tenant as his sole place of residence, the rent in respect of that farmhouse alone shall not exceed two percent (2%) per annum of the free and unencumbered on the open market value of the farmhouse: Provided that the Board shall grant the tenant the option to discontinue the lease of the farmhouse and to continue only the lease of the agricultural land at such rent as revised by the Board in accordance with this sub-article.

(g) the revised rent shall apply for a period of eight (8) years;

(h) the rent shall remain the same after the expiration of eight (8) years, unless otherwise agreed between the tenant and the lessor, or unless the lessor requests again the increase in rent according to this article.

(3) The Board may, instead of rejecting the new conditions proposed by the lessor, modify and approve them to the extent justified by the application of the provisions contained in sub-articles (2) and (2A): Provided that in no case shall such conditions be less favourable to the lessor than those of the last preceding lease.