AGRICULTURAL LEASES (RELETTING) ACT (reletting)

CHAPTER 199

AGRICULTURAL LEASES (RELETTING) ACT

To regulate the reletting of agricultural land and to provide for matters

connected therewith and ancillary thereto.

20th June, 1967

ACT XVI of 1967 as amended by Acts: XXVIII of 1969, IX of 1972, V of

1973, LVIII of 1974, V of 1975; Legal Notice 148 of 1975; Acts: XIX of

1979, XIII of 1983, VIII of 1990, XIX of 1993, XXIV of 1995, VI of 2001

and XXXI of 2002; Legal Notice 410 of 2007; and Acts XXI of 2009, XVII

of 2017 and IV and XXII of 2022 and Legal Notice 212 of 2023.

The short title of this Act is the Agricultural Leases

(Reletting) Act.

In this Act, unless the context otherwise requires -

"agricultural land" means any land which is mainly let for the

growing of crops, flowers, fruit-trees or vines and for cognate

agricultural purposes, including the erection of glasshouses,

cloches or cold frames, but does not include grazing grounds;

"assignee of the lease" includes a sub-tenant and, where there is

neither a person to whom the lease has been assigned nor a sub-

tenant, the person who is in the actual enjoyment of the lease by the

tenant’s express or tacit consent, and "assignment" shall be

construed accordingly;

"Board" means the Rural Leases Control Board established under

article 5;

"conditions" includes the rent payable in respect of a lease;

"date of termination" means the last day on which the period of

the lease whose conditions the lessor proposes to change or which

the lessor does not intend to renew expires;

"lease" means a lease for an agreed total period not exceeding

sixteen years for a rent in money or other consideration payable

yearly in one or more instalments and includes a lease tacitly

renewed from year to year or renewed by a decision of the Board

under this Act, but does not include either an emphyteusis or an

agreeme n t of l e ase i n virtue of whic h the produce is t o be

apportioned between the lessor and the tenant; it also includes

"sub-lease" in relation to sub-lessor and sub-tenant;

"lessor" includes a sub-lessor in relation to a sub-tenant;

"Malta" means the Island of Malta and the Islands of Gozo and

Comino;

"member of the family" means a lineal ascendant, a lineal

descendant, a widow or a widower, a son-in-law, and a widowed

daughter-in-law while not remarried, of the tenant;

"tenant" includes any member of the family who is an assignee of

the lease and, after the tenant’s death, where there is no such

member, it includes in order of preference any member of the

family who is a legatee of the lease or who, during the last year

immediately preceding the tenant’s death, was living with the

tenant or has been working the agricultural land with him or for

him or is the tenant’s heir; it includes also, in relation to a sub-

lessor, a sub-tenant, which expression shall be deemed in such

relation to have the same meaning as tenant in its full extent.

(1) Subject to the provisions of this Act, where a lessor

desires to make any change in the conditions of a lease on the

expiration of its term, unless an agreement in writing is reached

with the tenant, he shall apply to the Board by means of an

application containing in detail the proposed changes, filed not

later than three months before the date on which the term expires.

(2) The Board shall not approve any new conditions contained

in any application if it is proved that -

(a) such new conditions would be justified only in view of

improvements of a permanent character carried out in

the agricultural land, during the period of eight years

immediately preceding the date of termination, by the

tenant himself or by a member of the family, without

their having been under any obligation to effect those

improvements; or

(b) such new conditions would be justified only in view of

improvements of a permanent character carried out in

the agricultural land by the use of funds provided by

the Government or on behalf of the Government in the

form of a grant or in any other form which, subject to

compliance with the conditions governing the

provision of such funds, does not involve repayment.

(2A) When the change of the conditions of lease under this

article consists in an increase in the rent the following provisions

shall apply

(a) the owner in his application shall indicate by how

much the rent shall increase;

(b) the tenant on his part shall indicate in his reply how

much the fair rent should be in his opinion;

(c) in its final judgment the Board shall determine the fair

rent taking into account the value of the agricultural

land when valued as agricultural land for agricultural

use obtainable on the open market, the means of the

tenant, the circumstances and the condition of the

agricultural land and any burden that is

disproportionate to the lessor;

(d) the Board may establish that any increase in rent shall

be gradual;

(e) the rent revised by the Board shall not exceed one point

five per cent (1.5%) per annum of the value of the land free

and unencumbered made in accordance with paragraph (c);

(f)

when the agricultural land includes a farmhouse used

by the tenant as his sole place of residence, the rent in

respect of that farmhouse alone shall not exceed two

percent (2%) per annum of the free and unencumbered

on the open market value of the farmhouse

Provided that the Board shall grant the tenant the

option to discontinue the lease of the farmhouse and to

continue only the lease of the agricultural land at such

rent as revised by the Board in accordance with this

sub-article.

(g) the revised rent shall apply for a period of eight (8)

years;

(h) the rent shall remain the same after the expiration of

eight (8) years, unless otherwise agreed between the

tenant and the lessor, or unless the lessor requests

again the increase in rent according to this article.

(3) The Board may, instead of rejecting the new conditions

proposed by the lessor, modify and approve them to the extent

justified by the application of the provisions contained in sub-

articles (2) and (2A)

Provided that in no case shall such conditions be less

favourable to the lessor than those of the last preceding lease.

(1) Subject to the provisions of this Act, where a lessor

desires to resume possession of any agricultural land, unless the

tenant has agreed in writing both as regards the termination and as

regards the compensation due, he shall apply to the Board by means

of an application containing -

(a) detailed grounds for such termination, and

(b) a demand for the liquidation of any compensation

payable under the provisions of this article,

and filed not later than three months before the date on which the

current lease terminates

Provided that, where any such lease does not terminate on

the 15th day of August of any year, no decision approving such

resumption of possession shall be carried into effect before the 15th

day of August following the date of the termination of the lease

then current.

(2) The Board shall allow the lessor’s application if the lessor

proves that -

(a) he requires the agricultural land to be used for

agricultural purposes by himself personally or by any

member of the family personally for a period of not

less than four consecutive years starting immediately

following the date of termination; or

(b) he requires the agricultural land, provided it is not

irrigable land, for the construction thereon of buildings

for dwelling, business or industrial purposes; or

(c) the agricultural land was sublet or the lease thereof

transferred without the consent of the lessor to any

person other than a co-tenant thereof or a member of

the family; or

(d) during the two years immediately preceding the date of

termination, the field was allowed to lie fallow for at

least twelve consecutive calendar months; or

(e) during the two years immediately preceding the date of

termination, the tenant has failed, in respect of two or

more terms, to pay the rent, on each occasion, within

fifteen days from the day on which the lessor has

called upon him in writing for payment; or

(f)

during the two years immediately preceding the date of

termination, the tenant, being bound to repair and

maintain the walls of the agricultural land, failed to

fulfil such obligation or habitually disregarded any

other conditions of the lease or deliberately or through

negligence caused or allowed to be caused damage,

other than damage of small importance, to any fruit-

trees in the agricultural land

Provided that the circumstance mentioned under paragraph

(a) shall not be a sufficient reason to allow the lessor’s application,

if the tenant proves that the agricultural land in question is an

important source of his and his family’s livelihood and if the Board

is satisfied that the tenant would suffer a greater hardship than the

lessor were the application to be allowed

Provided further that where the agricultural land includes a

farmhouse which is used by the tenant as his and his family's sole

place of residence, the circumstance mentioned under paragraph (b)

shall not be a sufficient reason to allow the lessor’s application

unless the tenant is allowed to keep the farmhouse at a rent

established by the Board not exceeding two per cent (2%) per

annum of the market value of the farmhouse free and

unencumbered, and under new conditions, including conditions

regarding gradual increases, which may be established by the

Board with respect to the rent

Provided further that the Board shall grant the tenant the

option to discontinue the lease of the farmhouse, and to continue

only the lease of that land which remains exclusively intended for

agricultural use under new conditions which the Board may

establish in respect of the rent in accordance with article 3

Provided further that any person who has the right to be

recognised as the tenant according to the definition "tenant" in article 2

shall only acquire the right to occupy the farmhouse as a residence by

a title of lease for a period of eight (8) years. The rent shall remain the

same after the expiration of eight (8) years, unless otherwise agreed

between the tenant and the lessor, or unless the lessor again requests

the increase in rent in accordance with this Act.

(3) Where only part of the agricultural land is required for any

of the purposes mentioned in sub-article (2)(a) or (b) and the area

of the remaining part of such land exceeds 1124 square metres, the

tenant may ask the Board and the Board shall order that the lease be

renewed in respect of such remaining part of the agricultural land,

under such conditions as the Board, having regard to the conditions

of the last preceding lease, may deem fair to establish.

(4) Where the lessor resumes possession of agricultural land or

a part thereof by virtue of a decision of the Board based on sub-

article (2(a)), he shall pay to the tenant a fair compensation in

respect of any agricultural improvement carried out by the tenant or

by a member of the family in the said agricultural land or part

thereof during the period of eight consecutive years immediately

preceding the date of termination.

(5) Where the lessor resumes possession of the agricultural

land or a part thereof by virtue of a decision of the Board based on

sub-article (2)(b), he shall pay to the tenant a fair compensation as

provided in the last preceding sub-article and, in addition, an

amount equal to the value of the products gathered by the tenant or

by a member of the family from the said agricultural land or part

thereof, after deduction of the expenses incurred towards its

cultivation, in the last four years immediately preceding the date of

termination

Provided that there shall not be deducted as part of such

expenses the cost of the tenant’s own labour or of the labour of any

member of the family in the agricultural land or part thereof.

(6) The amount payable under the provision of sub-article (4)

or (5) shall be determined by the Board, subject to an appeal as is

provided under article 10. Such amount shall be paid to the tenant

within one month from the date on which the decision awarding

resumption of possession becomes final in all its parts. In default of

such payment within such time the said decision shall be of no

effect whatsoever.

(7) If the tenant retakes possession of any agricultural land or a

part thereof by virtue of a decision of the Board under article 13, he

shall pay back to the lessor any amount received in respect of the

agricultural land or part thereof in terms of sub-article (4) or (5).

(1) There shall be a Board to be known as the Rural Leases

Control Board.

(2) The Board shall consist of a chairman who shall be a

magistrate or a person who has practised as an advocate in Malta

for a period of, or periods amounting in the aggregate to, not less

than seven years, appointed by the Prime Minister.

(3) The Prime Minister may appoint several magistrates or

persons qualified as in sub-article (2) hereof to sit on the Board, but

only one magistrate or other person qualified as aforesaid shall sit

as chairman in any one case.

(4) The Prime Minister shall also appoint two panels as

follows

(a) a panel of Architects and Civil Engineers from among

persons who hold the warrant to practise as Architect

and Civil Engineer according to the provisions of the

Periti Act and who have practised that profession in

Malta for not less than seven years; and

(b) a panel of persons (in the public service or otherwise)

who are competent and knowledgeable in agricultural

matters.

(5) The chairman or any member of the panels may abstain or

may be challenged by any of the contending parties for any of the

causes mentioned in article 739 of the Code of Organization and

Civil Procedure and any question arising in regard to or in

connection with any cause of challenge or abstention shall be

decided by the chairman.

(6) (a) Where the chairman is not a magistrate he shall not

ent er upon the du ties of h is offi ce unless he has taken and

subscribed before the State Advocate an oath to exercise his

functions and to examine and decide any matter referred to him

with equity and impartiality.

(b)The members of the panels shall not enter upon the

duties of their office unless they have taken and subscribed an oath

before the chairman to exercise their functions under this Act with

impartiality and in accordance with the law.

(7) The members of the panels shall be appointed for a period

of two years and may be re-appointed.

(8) Whenever a question arises before the Board requiring the

valuation of any agricultural land or any other technical opinion in

connection with any case before the Board, the chairman shall

assign one member from each panel to examine the agricultural

land in question or to take cognizance of the record of the case

relative to the matter in which the technical opinion is requested,

and such two members shall present their report to the chairman

during the sitting or file the said report in the Registry of the Board

as the chairman may direct

Provided that where the valuation of any agricultural land

or any other technical opinion in respect of any case is required

before the board and where

(i)

it results that the valuation or other technical opinion

in respect of the same agricultural land was given

before a court by an Architect or Civil Engineer or by

another technical expert appointed by such court with

the agreement of the lessor and the tenant who were

parties to the said case before the court and who are

also parties to the case before the board; and

(ii) the said valuation or other technical opinion was

confirmed in a final judgment of a court,

the chairman may, after hearing the parties, decide to rely on

the said valuation or technical opinion to such extent as he

deems fit instead of assigning two (2) members of the panel to

examine the agricultural land in accordance with this article

Provided further that the chairman may also decide to rely on any

valuation or other technical opinion instead of assigning two (2)

members of the panel as aforesaid where all the parties to the case agree.

(9) The chairman may also require the said two members to

attend the sitting of the Board when that case is being considered

by the Board if any of the said two members require additional

information from the parties or need to hear any particular

witnesses.

(1) The Board shall have all such powers as are by the

Code of Organization and Civil Procedure vested in the Civil

Court, First Hall.

(2) Any warrant or order issued by the Board shall be signed by

the chairman and certified by the registrar.

(3) The enforcement of the decisions of the Board, in the

m a n n e r p r e s c r i b e d i n t h e C o d e o f O rg a n i z a t i o n a n d C i v i l

Procedure, shall vest in the Board itself.

(1) In regard to any proceedings which concern land

situated in the Island of Malta, the Board shall hold its sittings in

the Superior Courts of Malta and the registry of those courts shall

be the Registry of the Board.

(2) In regard to any proceedings which concern land situated in

the Island of Gozo or Comino, the Board shall hold its sittings in

the Court of Magistrates (Gozo) and the registry of that court shall

be the Registry of the Board.

The parties may appear before the Board in person or

through an advocate or legal procurator and may be assisted by an

advocate or legal procurator.

(1)

The decisions of the Board shall be delivered in open

court.

(2)

Repealed by article 2 of Act XIX of 1993.

(3) The chairman shall only be bound by the reports of the two

mem bers of the two panels assigned to a particular case in

accordance with article 5(8) whenever their reports are unanimous;

where unanimity is not reached by the said two members, the

chairman shall on the basis of the reports submitted by the said two

members, decide the matter himself.

(1) There shall only lie appeal from a decision of the

Board -

(a) in all cases where the decision is given on an

application made under article 4 or under article 25;

(b) in all other cases, on a point of law only.

(2) The appeal shall be brought before the Court of Appeal as

constituted in terms of article 41(9) of the Code of Organization

and Civil Procedure by means of an application filed in the registry

of that court within twenty days from the day on which the decision

of the Board is delivered.

(3) The Board established under article 29 of the Code of

Organization and Civil Procedure may make rules concerning

appeals to the Court of Appeal under this article.

(1) Any application as is referred to under articles 3 and 4

shall be filed against and served on the tenant from whom the lessor

has last received the rent before the application was filed in the

Registry of the Board or, in the case of an assignment which has

been notified in writing by the tenant to the lessor before the filing

of the application, shall be filed against and served on the assignee.

(2) The Board may at any time allow any amendment to be

made in the application which is intended to make it clearer.

(3) If the applicant personally or through an advocate or legal

procurator fails to appear at the hearing of the application, the

Board, unless it is satisfied that there is a good reason for such

default, shall dismiss the application and order the costs to be borne

by the applicant

Provided that the applicant may, within ten days of such

decision, apply to the Board for a re-hearing of his application and

the Board shall grant such application if he justifies his default to

the satisfaction of the Board.

The costs of the proceedings before the Board shall be

borne by the parties or by any of the parties as the Board may

direct.

(1) Any party to proceedings held under the provisions of

this Act may, by application, ask the Board for, and the Board shall

grant, a new trial if -

(a) the applicant proves to the satisfaction of the Board

that its decision in the proceedings has been

determined by a misrepresentation of facts or a false

statement made by the other party to the proceedings;

or

(b) the applicant proves to the satisfaction of the Board

that the lessor, having resumed possession of the

agricultural land or part thereof by virtue of a decision

of the Board based on paragraph of article 4(2)(a) or

(b), has failed to apply it to the purpose which had

determined the Board’s decision.

(2) If the Board reverses the decision which has formed the

object of a new trial, the party in whose favour such decision has

been reversed shall have an action before the Civil Court, First

Hall, for the recovery of damages from the other party and for the

payment by such other party of a penalty to be fixed by the court in

a sum not exceeding one thousand and one hundred and sixty-four

euro and sixty-nine cents (1,164.69)

Provided that where the lessor, by disposing of the

agricultural land or otherwise, has placed himself in a position

which makes him unable to conform with the Board’s decision in

the new trial, the said penalty shall not be less than four hundred

and sixty-five euro and eighty-seven cents (465.87).

(3) The Board shall also grant a new trial in any of the cases

referred to in article 811 of the Code of Organization and Civil

Procedure, but the provision of the last preceding sub-article shall

not apply except in regard to a case falling under the provision of

article 811(a).

(4) A new trial may not be demanded in respect of a case in

which the decision is subject to appeal in accordance with article

10 and where the facts constituting the ground for such new trial

have come to the knowledge of the party alleging them before the

expiration of the time prescribed for appeal.

Except where this Act states that an agreement may be made

between the lessor and the tenant, any clause or condition which

deprives the tenant of any benefit conferred by this Act, whether such

clause or condition has been stipulated prior to the commencement of

this Act or after such commencement, shall be null and void.

The provisions of articles 2, 4, 5, 6 and 7 of the Judicial

Proceedings (Use of English Language) Act shall apply in regard to

any judicial act filed for the purposes of this Act and to any

proceedings of the Board, and any reference in any of those

provisions to the court shall be construed as a reference to the

Board.

The provisions of the Code of Organization and Civil

Procedure relating to the benefit of legal aid shall apply to parties

to proceedings before the Board, being persons entitled to such

benefit within the meaning of those provisions.

The Minister responsible for justice may by notice

prescribe the fees payable to the chairman and the members of the

two panels.

The expenses in connection with the administration of the

Board, including the fees payable in accordance with regulations

made under article 17, shall be paid out of the Consolidated Fund

without the necessity of any further appropriation.

(1) The Minister responsible for justice may make

regulations governing the proceedings of the Board and, without

prejudice to the generality of the foregoing, may make regulations-

(a) prescribing the contents of an application to the Board

and the procedure for the service thereof on the party

having an interest to oppose the application;

(b) prescribing the procedure for the fixing by the Board

of the date of hearing of an application and for the

giving notice of such date to the parties concerned;

(c) prescribing the payments, including the payment of a

registry fee to be fixed by the said Minister, which are

to be made with the filing of an application to the

Board;

(d) prescribing what part of the registry fee is to be

refunded if an application is abandoned and the

procedure of refund;

(e) prescribing the fee payable to an advocate or legal

procurator for an application to the Board and enabling

the Board to fix, within limits established by the said

Minister, the fee payable to an advocate or legal

procurator in respect of proceedings before the Board;

(f)

prescribing any other matter that may be necessary for

the better carrying out of the functions of the Board

Provided that until fees are prescribed in terms of

paragraphs (c), (d) or (e), the fees established in Schedule A to the

Code of Organization and Civil Procedure shall apply.

(1A) The Minister responsible for justice, with the concurrence of

the Minister responsible for agriculture, may make regulations

regarding the procedure, the method and the criteria that should be

followed or to serve as guidelines in the carrying out of estimates of

the value of agricultural land, rents for agricultural purpose or

residential purpose or agricultural produce made in accordance with

any one (1) of the provisions of this Act. In making regulations under

this sub-article due account shall be taken of the rights of the tenant

and of the lessor, as well as of the national interest in supporting local

agriculture.

(2) Any regulations made under this article shall be laid before

the House of Representatives as soon as may be after they are

made, and if, within the next twenty days beginning with the day on

w h i c h s u c h r e g u l a t i o n s a r e s o l ai d b e f o r e i t , t h e H o u se o f

Representatives resolves that the regulations be annulled, they shall

henceforth be void, but without prejudice to anything previously

done thereunder or the making of any new regulations

Provided that there shall not be included in the computation

of the said twenty days any period of four or more consecutive days

intervening between any two consecutive sittings of the House of

Representatives.

Repealed by XVII.2017.84.

Non-renewal of

lease of

agricultural land

belonging to or

administered by

the Government.

Added by

XXVIII. 1969.4.

Amended by

LVIII. 1974.68.

Repealed by

XVII.2017.84.

Repealed by XVII.2017.84.

Declaration by

President of Malta.

Added by

XXVIII. 1969.4.

Amended by

LVIII. 1974.68;

XXI. 2009.11.

Repealed by

XVII.2017.84.

Repealed by XVII.2017.84.

Manner in which

the Commissioner

of Land may

prevent renewal of

a lease.

Added by

XXVIII. 1969.4.

Amended by

LVIII. 1974.68;

L.N. 148 of 1975.

Repealed by

XVII.2017.84.

Repealed by XVII.2017.84.

Taking possession

of the land.

Added by

XXVIII. 1969.4.

Repealed by

XVII.2017.84.

Repealed by XVII.2017.84.

Compensation for

non-renewal of

lease.

Added by

XXVIII. 1969.4.

Repealed by

XVII.2017.84.

Repealed by XVII.2017.84.

Determination of

compensation.

Added by

XXVIII. 1969.4.

Amended by

IX. 1972.8.

Repealed by

XVII.2017.84.

Repealed by XVII.2017.84.

Where declaration

is made in respect

of only a part of

agricultural land

leased.

Added by

XXVIII. 1969.4.

Repealed by

XVII.2017.84.

The provision of article 1591 of the Civil Code shall not

apply in respect of the renewal of a lease of agricultural land.