Notice to Treat - Compulsory Purchase Association

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Requirement to provide claim within 21 days of Notice to Treat


What is the Problem

S.6 of the Compulsory Purchase Act 1965 states that if a claimant does not state the particulars of his claim, or treat with the acquiring authority, or if compensation has not been agreed, then the question of compensation shall be referred to the Tribunal.  Where Notice to Treat has been served but entry won’t be taken for many months, it should not be necessary for a  claim to be formulated within 21 days of a notice being served on the claimant.  In practice, and particularly in the case of compensation due under rule 6,  it will in fact normally be impossible to make a reasoned claim within this time period.  Most claims, if they are actually made in compliance with timing requirement, simply state quantum is to be determined.

There is a risk of cost penalties if a claimant does make a claim within 21 days of a Notice to Treat being served.
The possibility of being at risk on costs should not hangover a claimant, albeit the Tribunal rarely invokes the penalty of denying a claimant their costs for not submitting a claim within the prescribed time.

Aim

Remove the current unrealistic 21 day requirement for making a claim and replace it with a requirement to make a claim within a more reasonably achievable period.

There is potential to create interaction with this provision and the prescribed form of request for an advance payment referred to above.   

   

Notes from discussion

It is very rare for a claimant to provide any meaningful information within 21 days.

Next Steps/Actions

Amendment required to primary legislation in next major reform package


 
 
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