46.—(1) (a) Subject to the provisions of this Act, where a tenant quits a tenement because of the termination of his tenancy, he shall be entitled to be paid by the landlord compensation (in this Act referred to as compensation for improvements) in accordance with this Act for every improvement made on the tenement by the tenant or any of his predecessors in title (whether before or after the commencement of this Act) which, at the termination of the tenancy, adds to the letting value and is suitable to the character of the tenement.

(b) Paragraph (a) does not apply where—

(i) the tenant has terminated the tenancy by notice of surrender or otherwise, or

[cf. 1931, s. 10 (1)]

(ii) the tenancy is terminated because of non-payment of rent, whether the proceedings are framed as an ejectment for non-payment of rent, an ejectment for overholding or an ejectment on the title based on a forfeiture.

(2) Subject to the provisions of this Act, where a landlord holds a tenement under a lease or other contract of tenancy, he shall be entitled, on giving up possession of the tenement because of the expiration of the lease or tenancy, to be paid by his immediate superior landlord compensation (in this Act included in the expression compensation for improvements) for every improvement which was made (whether before or after the commencement of this Act) on the tenement by a tenant thereof and in respect of which the landlord or any of his predecessors in title has given consideration whether by reduction of rent, by payment of compensation under the Town Tenants (Ireland) Act, 1906, by payment of compensation under section 10 of the Act of 1931, by payment of compensation for improvements under this Act, or in any other way.

(3) Compensation for improvements payable by a landlord under subsection (1) shall, subject to this Act, be payable on—

(a) the expiration of one month from the date of the fixing, by agreement or by the Court, of its amount, or

(b) the delivery to the landlord by the tenant of clear possession of the tenement,

whichever is the later.