Section 16-20 of the Land Use Act 2004
Section 16, 17, 18, 19, 20 of the Land Use Act 2004 is under Part III (Rents) of the act.
Section 16 of the Land Use Act 2004
Principles to be observed in fixing and revising rents
In determining the amount of the original rent to be fixed for any particular land and the amount of the revised rent to be fixed on any subsequent revision of rent, the Governor –
(a) Shall take into consideration rent previously fixed in respect of any other like land in the immediate neighbourhood, and shall have regard to all the circumstances of the case;
(b) shall not take into consideration any value due to capital expended upon the land by the same or any previous occupier during his term or terms of occupancy, or ay increase in the value of the land the rental of which is under consideration, due to the employment of such capital.
Section 17 of the Land Use Act 2004
Power of Governor to grant rights of occupancy free of rent or at reduced rent
(1) The Governor may grant a statutory right of occupancy free of rent or at a reduced rent in any case in
which he is satisfied that it would be in the public interest to do so.
(2) Where a statutory right of occupancy has been granted free of rent the Governor may, subject to the express provisions of the certificate of occupancy, nevertheless impose a rent in respect of the land the subject of the right of occupancy if and when he may think fit.
Section 18 of the Land Use Act 2004
Acceptance of rent not to operate as a waiver of forfeiture
Subject to the provisions of sections 20 and 21, the acceptance by of or behalf of the Governor of any rent shall not operate as a waiver by the Governor of any forfeiture accruing by reason of the breach of any covenant or condition, express or implied, in any certificate of occupancy granted under this Act.
Section 19 of the Land Use Act 2004
(1) When in any certificate of occupancy the holder has covenanted to develop or effect improvements on the land the subject of the certificate of occupancy and has committed a breach of such covenant the Governor may
(a) at the time of such breach or at any time thereafter so long as the breach remains unremedied, fix a
penal rent which shall be payable for twelve months from the date of such breach; and
(b) on the expiration of twelve months from the date of such breach and on the expiration of every
subsequent twelve months so long as the breach continues revise the penal rent to be paid.
(2) Such penal rent or any revision thereof shall be in addition to the rent reserved by the certificate of
occupancy and shall be recoverable as rent:
Provided that the first penal rent fixed shall not exceed the rent so reserved and any revised penal rent
shall not exceed double the penal rent payable in respect of the twelve months preceding the date of
(3) If the Governor fixes or revises a penal rent he shall cause a notice in writing to be sent to the holder informing him of the amount thereof and the rent so fixed or revised shall commence to be payable one calendar moth from the date of the receipt of such notice.
(4) If the breach for which a penal rent has been imposed is remedied before the expiration of the period for which such rent has been paid, the Governor may in his discretion refund such portion of the penal rent paid for such period as he may think fit.
(5) The fact that a penal rent or a revised penal rent has been imposed shall not preclude the Military Governor, in lieu of fixing a
subsequent penal rent, from revoking the statutory right of occupancy.
Provided that the statutory right of occupancy shall not be revoked during the period for which a penal
rent has been paid.
Section 20 of the Land Use Act 2004
Additional Penal rent for unlawful alienation
(1) If there has been any breach of any of the provisions of section 22 or 23 the Governor may in lieu of revolving the statutory right of occupancy concerned demand that the holder shall pay an additional and penal rent for and in respect of each day during which the land subject of the statutory right of occupancy or any portion thereof or any building or other works erected thereon shall be or remain in the possession, control or occupation of any person whomsoever other than the holder.
(2) The acceptance by or on behalf of the Governor of any such additional and penal rent shall not operate as a waiver by the Governor of any breach of section 22 or 23 which may continue after the date up to and in respect of which such additional and penal rent has been paid or is due and owing and the Military Governor shall accordingly be entitled to exercise in respect of any such continuing breach all or any of the powers conferred upon him by this Act.