Regulation 39 End of the MRO procedureI1

England and Wales

(1)

This regulation applies where a tied pub tenant has given an MRO notice.

(2)

Where the tied pub tenant communicates to the pub-owning business, in writing, a decision to accept a tenancy or licence proposed by the pub-owning business (including where the tenant accepts a tenancy or licence under regulation 37(13), 38(5), 59(2), (5) or (9)), the tenant and the pub-owning business must, as soon as reasonably practicable, enter into the tenancy or licence.

(3)

Where the tied pub tenant and the pub-owning business fail to enter into a tenancy or licence in compliance with paragraph (2), either of them may refer the matter to the Adjudicator.

(4)

The MRO procedure ends on the earliest of the following days—

(a)

where the tied pub tenant and the pub-owning business enter into a tenancy or licence, on the day on which the tenancy or licence is entered into;

(b)

where the tenancy or licence under which the tied pub is occupied at the time the MRO notice is given ends, on the day on which the tenancy or licence ends;

F1(c)

where—

(i)

the referral period specified in regulation 35(5) ends;

(ii)

the tied pub tenant does not, before or during that period, communicate to the pub-owning business, in writing, a decision to accept a tenancy or licence proposed by the pub-owning business;

(iii)

the tenant does not make a reference under regulation 35 in relation to the proposed MRO rent; and

(iv)

the time allowed under that regulation for making such a reference has expired,

on the day on which the referral period ends;

(d)

where the tied pub tenant rejects a proposed tenancy or licence under regulation 37(13) or (14), 38(5) or (6), or 59(2), (5), (9) or (10), on the day on which the tenant rejects that proposal;

(e)

where—

(i)

a matter is referred to the Adjudicator under regulation 32(2); and

(ii)

the Adjudicator (or a person appointed by the Adjudicator under regulation 58(2)(b) or 60(4)(b)) does not consider that the circumstances are such that the pub-owning business must offer the tenant a market rent only option,

on the day of the F2Adjudicator’s or appointed person’s ruling or, if later, the day after the day on which any further right of referral under regulation 32(2) ends;

(f)

where—

(i)

a matter is referred in connection with any other aspect of the MRO procedure; and

(ii)

the Adjudicator rules that the MRO procedure ends on a specified day,

on the day so specified;

(g)

where the pub-owning business conducts a rent assessment or an assessment of money payable in lieu of rent, on the day on which the tenant agrees, in writing, the new rent;

F3(h)

where the pub-owning business sends a full response under regulation 29(4) and the tied pub tenant has not made a referral under regulation 32(2) in respect of it, the day after the day on which the period specified under regulation 32(5) ends.

Annotations

Textual amendments

F1: Reg. 39(4)(c) substituted (1.4.2022) by The Small Business, Enterprise and Employment Act 2015 and Pubs Code etc. (Amendment) Regulations 2022 (S.I. 2022/341), reg. 1(1), Sch. 2 para. 14(2) (with reg. 4)
F2: Words in reg. 39(4)(e) substituted (1.4.2022) by The Small Business, Enterprise and Employment Act 2015 and Pubs Code etc. (Amendment) Regulations 2022 (S.I. 2022/341), reg. 1(1), Sch. 2 para. 14(3) (with reg. 4)
F3: Reg. 39(4)(h) inserted (1.4.2022) by The Small Business, Enterprise and Employment Act 2015 and Pubs Code etc. (Amendment) Regulations 2022 (S.I. 2022/341), reg. 1(1), Sch. 2 para. 14(4) (with reg. 4)

Commencement

I1: Reg. 39 in force at 21.7.2016, see reg. 1(b)