Section 3 Indemnification of persons suffering loss.

(1)

Any person suffering loss by reason of paragraph (b) of subsection (1), or by reason of subsection (2), of section one of this Act, or by reason of the last preceding section, shall be entitled, subject to the provisions of this section, to be indemnified in respect thereof out of moneys provided by Parliament.

(2)

No indemnity shall be payable under this section in respect of any loss where the applicant has himself caused or substantially contributed to the loss by his act, neglect or default:

Provided that the foregoing provisions of this subsection shall not apply in relation to any failure on the part of the applicant to register a puisne mortgage under the M1Land Charges Act, 1925, but if—

(a)

the mortgage is not registered under that Act during the twelve months beginning with the date of the passing of this Act; and

(b)

the loss could have been prevented by the registration or earlier registration thereof,no indemnity shall be payable unless there is reasonable excuse for the failure to register the mortgage in time to prevent the loss.

(3)

Any indemnity under this section may include a reasonable sum in respect of any costs or expenses properly incurred by the applicant in relation to the matter.

(4)

If any question arises as to whether a person is entitled to an indemnity under this section or as to the amount of any such indemnity, he may, subject to and in accordance with rules of court, apply in a summary manner to the High Court to have that question determined, and the Court shall have power to hear any application made under this subsection and to make such order thereon as seems proper.

(5)

Where indemnity is paid under this section, the Attorney-General shall be entitled, on behalf of the Crown,—

(a)

to recover the amount paid from any person who has caused or substantially contributed to the loss by his fraud; and

(b)

to enforce any express or implied covenant or other right which the person who is indemnified would have been entitled to enforce in relation to the matter in respect of which the indemnity was paid.

Annotations

Marginal citations

M1: 1925 c. 22.