192.—(1) Where a claim for compensation is made under section 190, the planning authority concerned may, not later than 12 weeks after the claim is received, and having regard to all the circumstances of the case, serve a notice in such form as may be prescribed on the person by whom or on behalf of whom the claim has been made stating that, notwithstanding the refusal of permission to develop land or the grant of permission to develop land subject to conditions, the land in question is in its opinion capable of other development for which permission under Part III ought to be granted.

(2) For the purpose of subsection (1), “other development” means development of a residential, commercial or industrial character, consisting wholly or mainly of the construction of houses, shops or office premises, hotels, garages and petrol filling stations, theatres or structures for the purpose of entertainment, or industrial buildings (including warehouses), or any combination thereof.

(3) A notice under subsection (1) shall continue in force for a period of 5 years commencing on the day of service of the notice, unless before the expiration of that period—

(a) the notice is withdrawn by the planning authority,

(b) a permission is granted under Part III to develop the land to which the notice relates in a manner consistent with the other development specified in the notice, subject to no conditions or to conditions of a class or description set out in the Fifth Schedule, or

(c) the notice is annulled by virtue of subsection (5).

(4) Compensation shall not be payable on a claim made under section 190 where—

(a) a notice under subsection (1) is in force in relation to that claim,

(b) a notice under subsection (1) was in force in relation to that claim but has ceased to be in force by reason of the expiration of the period referred to in subsection (3), and an application for permission under Part III to develop the land to which the notice relates, in a manner consistent with the other development specified in the notice, has not been made within that period, or

(c) a notice under subsection (1) was in force in relation to the claim but has ceased to be in force by virtue of subsection (3)(b).

(5) A notice under subsection (1) shall be annulled where, upon an application for permission under Part III to develop the land to which the notice relates in a manner consistent with the other development specified in the notice, the permission is refused or is granted subject to conditions other than conditions of a class or description set out in the Fifth Schedule.

(6) No claim for compensation under section 190 shall lie in relation to a decision under Part III referred to in subsection (5).