Hillingdon LBC v ARC Ltd (No 1)
| Jurisdiction | England & Wales |
| Judgment Date | 12 June 1997 |
| Date | 12 June 1997 |
| Court | Chancery Division |
Chancery Division
Before Mr Stanley Burnton, QC
Compulsory purchase - compensation - cause of action accrues on date of entry
A cause of action in respect of a claim for compensation for compulsory purchase resulting from the entry by an acquiring authority on land pursuant to section 11 of the Compulsory Purchase Act 1965 accrued on the date of that entry notwithstanding that the amount of compensation payable had not been agreed or determined by the Lands Tribunal.
Mr Stanley Burnton QC, sitting as a deputy judge of the Chancery Division, so held on a preliminary issue in an action brought by Hillingdon London Borough Council against ARC Ltd.
Section 11 of the Compulsory Purchase Act 1965 provides: "(1) If the acquiring authority have served notice to treat in respect of any of the land and have served on the owner, lessee and occupier of the land not less than fourteen days notice, the acquiring authority may enter on and take possession of the land, or of such part as is specified in the notice; and then any compensation agreed or awarded for the land of which possession is taken shall carry interest…from the time of entry until the compensation is paid into court in accordance with this Act."
Mr Joseph Harper, QC, for Hillingdon; Mr Neil King for the defendant.
HIS LORDSHIP said that the defendant had a 35-year lease of land in relation to which Hillingdon made a compulsory purchase order on December 24, 1980. On April 26, 1982 Hillingdon entered the land and commenced the work necessary to build a by-pass.
The defendant did not submit his claim for compensation for the compulsory purchase until January 2, 1992.
The question was whether a claim for compensation for compulsory purchase resulting from the entry by an acquiring authority on land pursuant to section 11 of the Compulsory Purchase Act 1965 was subject to the six-year limitation period laid down in section 9 of the Limitation Act 1980, notwithstanding that the amount of compensation payable had not been agreed or determined by the Lands Tribunal.
It was widely assumed, on the basis of Turner v Midland Railway CoELR ([1911] 1 KB 832) that no limitation period was applicable until the amount of compensation had been agreed or determined: see, for example, Co-Operative Wholesale Society v Chester le Street District Council ([1996] 73 P & CR 111, 120). Hillingdon contended that that assumption was incorrect.
Mr...
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