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Section 31 Leases granted in pursuance of franchise agreements: no security of tenure.

(1)

In any case where—

(a)

a franchise agreement makes provision for the franchisee, the franchise operator or a wholly owned subsidiary of the franchisee to enter into an agreement (“the contemplated agreement") with a person who has an interest in a network or a railway facility,

(b)

the network or railway facility is to be used for or in connection with the provision of any of the franchised services, and

(c)

the contemplated agreement creates a tenancy of any property which (whether in whole or in part) constitutes, or is comprised in, the network or railway facility,

neither Part II of the M1Landlord and Tenant Act 1954 (security of tenure of business premises) nor the M2Tenancy of Shops (Scotland) Act 1949 (security of tenure of shop premises in Scotland) shall apply to that tenancy.

(2)

For the purposes of this section, a person shall be regarded as having an interest in a network or railway facility if he has an estate or interest in, or right over, any of the property which constitutes, or is comprised in, the network or railway facility.

(3)

Any reference in this section to a network or a railway facility includes a reference to any part of a network or railway facility.

(4)

In this section—

  • “agreement” includes a lease, underlease or sublease (as well as a tenancy agreement or an agreement for a lease, underlease or sublease);

  • “tenancy” has the same meaning as it has in Part II of the M3Landlord and Tenant Act 1954 or, in Scotland, as it has in the M4Tenancy of Shops (Scotland) Act 1949.

Annotations

Marginal citations

M1

1954 c. 56.

M2

1949 c. 25.

M3

1954 c. 56.

M4

1949 c. 25.

Notes on Part I

Modifications

C1

Pt. I (ss. 1-83) modified (18.12.1996) by 1996 c. 61, s. 21(6)

C2

Pt. 1 (ss. 1-83) applied (S.) (27.4.2006) by Edinburgh Tram (Line Two) Act 2006 (asp. 6), s.78 (with s.75)

Pt. 1 (ss. 1-83) applied (S.) (8.5.2006) by Edinburgh Tram (Line One) Act 2006 (asp. 7), s.79 (with ss.76, 84)

Commencement

I1

Pt. I (ss. 1-83) applied (1.4.1994) by 1993 c. 43, ss. 36(2) (inserting s. 10(1)(viiia) in 1968 c. 73); S.I. 1994/571, art. 5

Pt. I (ss. 1-83) applied (18.12.1996) by 1996 c. 61, s. 16(5)

Notes on Provision of passenger services

Textual amendments

F1

Word in s. 23 cross-heading substituted (28.11.2024) by Passenger Railway Services (Public Ownership) Act 2024 (c. 25), s. 5(2), Sch. para. 2