Singapore legislation
Clause 7
of Recovery of Possession of Controlled Premises (Special Provisions) Bill
Clause 7
Payment of compensation to tenants to be within certain limits
(1)
Where the Board has made an order under subsection (3) of section 4 of this Act 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 sub-tenant shall apply: —
in the case of controlled premises or 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 eight years’ rent paid over the period of the eight years preceding the date of the application by the landlord to the Board;
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 six years’ rent paid over the period of the six years preceding the date of the application by the landlord to the Board; and
in the case of controlled premises or any part thereof which when originally let consisted of vacant land but there has since been erected thereon a building or buildings of a temporary character, an amount of not less than the total of twelve 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 same 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 shall have regard to the following matters: —
in the case of controlled premises used or occupied for commercial purposes —
loss of income attributable to the recovery of possession of the controlled premises;
loss of goodwill (if any) attributable to the change of location of the controlled premises;
loss attributable to disruption of business caused by removal to another site;
cost of removal to another site;
annual rent paid for the controlled premises;
length of time that the controlled premises have been subject to control under the Control of Rent Ordinance (Cap. 242); and
in the case of controlled premises, used or occupied for residential purposes, sub-paragraphs (iv), (v) and (vi) of paragraph (a) of this subsection only shall be taken into account.
(3)
For the purposes of this section the expression “commercial purposes” means controlled premises used or occupied for 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 the expression “residential purposes” means controlled premises used or occupied for purposes of human habitation.