Compulsory purchase — Acquisition of land by local authority — Lease of land granted to golf club with option to purchase — Purported exercise of option by club — Local authority contesting option’s exercise — Specific performance ordered — Whether option falling under local authority powers — Whether option “sale” or “disposal” of land — Appeal by local authority allowed
In 1951 Chippenham Borough Council compulsorily acquired 63 acres of land in the borough under the Physical Training and Recreation Act 1937 and a compulsory purchase order made in 1948. The land was then let to Chippenham Golf Club. At the time that the lease was renewed, the club was also granted an option to purchase the property on one year’s notice in writing. The sum was to be fixed by the district valuer and the option was registered as a C(iv) land charge. Later the appellant, North Wiltshire District Council, became the successor of Chippenham Borough Council. The plaintiffs as the present trustees of the golf club approached the council’s chief executive regarding the option to purchase and an informal approach was also made to the district valuer. They then gave a formal one year’s notice to exercise it and when the council challenged the validity of the option, the plaintiffs issued a writ seeking specific performance. The judge held that the local authority were empowered to sell and dispose of land under section 165 of the Local Government Act 1933, which extended to the grant of an option. The council appealed.
Held The appeal was allowed.
