Town and Country Planning Act land acquisition Q4

Q.
Discuss the circumstances whereby the landowner is permitted under the Town and Country Planning Act 1976 (as amended) to serve a notice to the local authority to acquire his land.

(25 marks, 2013 Q4)

A.
[Planning control is intended to regulate the development of land in the public interest. For this reason, planning decisions may conflict with the private interests of land owners.

There is no entitlement to compensation for adverse planning decisions (except in limited circumstances where "permitted development" rights under a Development Order are withdrawn by direction or planning permission is revoked etc).

This is because owners usually have some continuing benefit from current uses. But occasionally there may be no reasonably beneficial use for the land-so to remedy this situation, an owner has the right, in certain circumstances, to serve a "purchase notice" requiring a local authority to purchase his interest in land.]

It is in this context that the landowner is permitted under the Town and Country Planning Act 1976 to serve a notice to the Local Authority to purchase his land. Or else, he would be left without any claim for his lost!

The law which governs this area is Section 37 of the Town and Country Planning Act 1976.

Notice requiring purchase of land in certain cases

37. (1) Without prejudice to the operation of any written law for the time being in force relating to the acquisition of land, a registered proprietor of land—

(a) for the development of whose land planning permission has been refused under subsection 22(3) on the grounds that the land is indicated in the development plan, whether expressly or by implication, as land intended for a public purpose and who claims that, by reason of the refusal, the land is incapable of reasonable beneficial use; or

(b) who claims that, by reason of compliance with a requisition notice in respect of his land served on him under Section 30, the land is incapable of reasonable beneficial use,

may, in the prescribed manner, serve on the local planning authority a purchase notice in the prescribed form, requiring his interest in the land to be purchased in accordance with this section.

(2) There shall be served with the purchase notice a statement of the facts and reasons to justify the claims in the notice, together with copies of any available documents, including affidavits, that may furnish proof of the facts and reasons.

(3) The local planning authority shall investigate the claim made in every purchase notice served under subsection (1) and, if it is satisfied that the notice is in the prescribed form and has been prepared and served in the prescribed manner, shall submit the notice to the State Authority together with the statement and any other documents served with the notice and—

(a) in the case of a purchase notice of a person claiming under paragraph (1)(a), a detailed report concerning the refusal of planning permission giving rise to the claim, a statement of the specific purpose for which the land is intended, and a statement of the opinion of the local planning authority as to whether the land is capable of reasonable beneficial use; and

(5) The State Authority, after considering the purchase notice and all other matters submitted by the local planning authority under subsection (3), shall—

(a) if the State Authority is satisfied that the land to which the purchase notice relates is capable of reasonable beneficial use, reject the purchase notice; or

(b) if the State Authority is not satisfied that the land to which the purchase notice relates is capable of reasonable beneficial use or is satisfied that the land is not capable of such use, direct the local planning authority to initiate steps towards the acquisition of the land in accordance with the provisions of the Land Acquisition Act 1960 [Act 486].

(6) For the purposes of the Land Acquisition Act 1960—

(a) any land intended to be acquired pursuant to this section shall be deemed to be needed by the local planning authority;

(b) the local planning authority shall be deemed to be a corporation undertaking a work that is of public utility; and

(c) the land shall be deemed to be needed for the purpose referred to in paragraph 3(1)(b) of the Act.

Brief Summary
For land owner who intends to develop the land, approval of a Permit must be obtained from the State Planning Unit under the State Authority. If it is being refused due to reasons of town planning and for public use, e.g. building of school, hospital, road and bridges, the refusal to grant a permit results in the loss of beneficial use of the land to the owner. The owner cannot develop the land anymore.

In such case, the land owner can have an avenue to notify the Local Authority to purchase his affected land. Such notice is studied by the State Authority and if acquisition of the affected land is the best option, the procedures and laws of Land Acquisition Act, 1960 kicks in.

The law that governs the matter is Section 37 of the Town and Country Planning Act, 1976. Postings on Town and Country Planning Act is gathered in this link search "land acquisition" in Part II.

Ref:
[x] The UK Planning Inspectorate, under "Purchase Notices Served under the Town and Country
Planning Act 1990", available at
http://www.planningportal.gov.uk/uploads/pins/purchase_notice_guidance.pdf
Sections 22 and 37 of Town and Country Planning Act, 1976 available at
http://www.agc.gov.my/Akta/Vol.%204/Act%20172.pdf