Part 2 continued    

(5)Otherwise, the arbitrator must make whatever award the arbitrator considers
appropriate (applying the principles in section 15).

(6)An award under this section may—

(a)give the tenant relief from payment of the debt as set out in the award,
5or

(b)state that the tenant is to be given no relief from payment of the debt.

(7)Where an award under subsection (6)(a) gives the tenant time to pay an
amount (including an instalment), the payment date must be within the period
of 24 months beginning with the day after the day on which the award is made.

(8)10In subsection (7) “the payment date” means the day specified in the award as
the day on which the amount concerned falls due for payment.

(9)In this section “final proposal” means—

(a)the revised formal proposal put forward by a party under section 11(4),
or

(b)15if there is no revised formal proposal put forward by a party, the formal
proposal put forward by the party under section 11(1) or (2).

15 Arbitrator’s principles

(1)The principles in this section are—

(a)that any award should be aimed at—

(i)20preserving (in a case falling within section 13(4)(a)), or

(ii)restoring and preserving (in a case falling within section
13(4)(b)),

the viability of the business of the tenant, so far as that is consistent with
preserving the landlord’s solvency, and

(b)25that the tenant should, so far as it is consistent with the principle in
paragraph (a) to do so, be required to meet its obligations as regards the
payment of protected rent in full and without delay.

(2)In considering the viability of the tenant’s business and the landlord’s solvency
for the purposes of subsection (1), the arbitrator must disregard anything done
30by the tenant or the landlord with a view to manipulating their financial affairs
so as to improve their position in relation to an award to be made under section
14.

(3)For the purposes of this section, the landlord is “solvent” unless the landlord
is, or is likely to become, unable to pay their debts as they fall due.

16 35Arbitrator: assessment of “viability” and “solvency”

(1)In assessing the viability of the business of the tenant, the arbitrator must, so
far as known, have regard to—

(a)the assets and liabilities of the tenant, including any other tenancies to
which the tenant is a party,

(b)40the previous rental payments made under the business tenancy from
the tenant to the landlord,

(c)the impact of coronavirus on the business of the tenant, and

(d)any other information relating to the financial position of the tenant
that the arbitrator considers appropriate.

(2)In assessing the solvency of the landlord, the arbitrator must, so far as known,
have regard to—

(a)the assets and liabilities of the landlord, including any other tenancies
to which the landlord is a party, and

(b)5any other information relating to the financial position of the landlord
that the arbitrator considers appropriate.

(3)In making an assessment under subsection (1) or (2), the arbitrator must
disregard the possibility of the tenant or the landlord (as the case may be)—

(a)borrowing money, or

(b)10restructuring its business.

17 Timing of arbitrator’s award

(1)Subject to subsection (2), the arbitrator must make an award under section 14
as soon as reasonably practicable after—

(a)where both parties have put forward a final proposal, the day on which
15the latest final proposal is received, or

(b)otherwise, the last day on which a party may put forward a revised
formal proposal (see section 11(4)).

(2)Where an oral hearing is held (see section 20), the arbitrator must make an
award within the period of 14 days beginning with the day on which the
20hearing concludes.

(3)The period in subsection (2) may be extended—

(a)by agreement between the parties, or

(b)by the arbitrator where the arbitrator considers that it would be
reasonable in all the circumstances to do so.

(4)25In this section “final proposal” has the same meaning as in section 14(9).

18 Publication of award

(1)This section applies when the arbitrator has made an award on a reference
under this Part.

(2)The arbitrator must publish the award together with the reasons for making it,
30subject as follows.

(3)The arbitrator must exclude confidential information from anything published
under this section, unless the arbitrator has been notified by the person to
whom it relates that the person consents to its publication.

(4)In subsection (3) “confidential information” means information which the
35arbitrator is satisfied is—

(a)commercial information relating to a party or to any other person the
disclosure of which would, or might, significantly harm the legitimate
business interests of the person to which it relates, or

(b)information relating to the private affairs of an individual the
40disclosure of which would, or might, significantly harm that
individual’s interests.

Arbitration fees and oral hearings

19 Arbitration fees and expenses

(1)In this section references to arbitration fees are to—

(a)the arbitrators’ fees and expenses (including any oral hearing fees), and

(b)5the fees and expenses of any approved arbitration body concerned.

(2)The Secretary of State may by regulations made by statutory instrument
specify limits on arbitration fees, which may differ depending on the amount
of protected rent debt in question.

(3)A statutory instrument containing regulations under subsection (2) is subject
10to annulment in pursuance of a resolution of either House of Parliament.

(4)The applicant must pay arbitration fees (other than oral hearing fees) in
advance of the arbitration taking place.

(5)When the arbitrator makes an award under section 13 or 14, the arbitrator must
(subject to subsection (6)) also make an award requiring the other party to
15reimburse the applicant for half the arbitration fees paid under subsection (4).

(6)The general rule in subsection (5) does not apply if the arbitrator considers it
more appropriate in the circumstances of the case to award a different
proportion (which may be zero).

(7)Except as provided by subsection (5) and section 20(6), the parties must meet
20their own legal or other costs.

(8)Legal or other costs incurred in connection with arbitration (including
arbitration fees) are not recoverable by virtue of any term of the business
tenancy concerned.

(9)In this section, “applicant” means the party which made the reference to
25arbitration.

20 Oral hearings

(1)An oral hearing must be held where either or both of the parties makes a
request to the arbitrator.

(2)An oral hearing must be held within the period of 14 days beginning with the
30day on which the arbitrator receives a request under subsection (1).

(3)The period in subsection (2) may be extended—

(a)by agreement between the parties, or

(b)by the arbitrator where the arbitrator considers that it would be
reasonable in all the circumstances to do so.

(4)35Where both parties request an oral hearing, the parties are jointly and severally
liable to pay the hearing fees in advance.

(5)Where one of the parties requests an oral hearing, that party must pay the
hearing fees in advance.

(6)When the arbitrator makes an award under section 13 or 14, the arbitrator must
40(subject to subsection (7)) also make an award requiring the other party to
reimburse the applicant for half the hearing fees.

(7)The general rule in subsection (6) does not apply if the arbitrator considers it
more appropriate in all the circumstances to award a different proportion
(which may be zero).

(8)An oral hearing must be held in public unless the parties agree otherwise.

5Guidance

21 Guidance

(1)The Secretary of State may issue guidance to—

(a)arbitrators about the exercise of their functions under this Part, and

(b)tenants and landlords about making a reference to arbitration under
10this Part.

(2)The Secretary of State may revise any guidance issued under this section.

(3)The Secretary of State must arrange for any guidance issued or revised under
this section to be published.

Modification of Part 1 of the Arbitration Act 1996

22 15Modification of Part 1 of the Arbitration Act 1996

Schedule 1 modifies Part 1 of the Arbitration Act 1996 in relation to arbitrations
under this Part.

Part 3 Moratorium on certain remedies and insolvency arrangements

23 20Temporary moratorium on enforcement of protected rent debts

(1)Schedule 2 contains—

(a)provision preventing a landlord who is owed a protected rent debt
from using the following remedies in relation to (or on the basis of) the
debt during the moratorium period—

(i)25making a debt claim in civil proceedings;

(ii)using the commercial rent arrears recovery power;

(iii)enforcing a right of re-entry or forfeiture;

(iv)using a tenant’s deposit;

(b)retrospective provision in relation to certain debt claims made by such
30a landlord before the start of the moratorium period for the protected
rent debt;

(c)provision relating to the right of such a landlord during the
moratorium period to appropriate any rent paid by the tenant;

(d)retrospective provision in relation to the right of such a landlord to
35appropriate any rent paid by the tenant before the start of the
moratorium period for the protected rent debt;

(e)provision connected with certain things mentioned in paragraphs (a) to
(d).

(2)In this section “the moratorium period”, in relation to a protected rent debt, is
the period—

(a)beginning with the day on which this Act is passed, and

(b)ending—

(i)5where the matter of relief from payment of the protected rent
debt is not referred to arbitration within the period for
references to arbitration, with the last day of that period, or

(ii)where that matter is referred to arbitration, with the day on
which the arbitration concludes.

(3)10For the purposes of subsection (2)(b) an arbitration concludes when—

(a)the arbitration proceedings are abandoned or withdrawn by the
parties,

(b)the time period for appealing expires without an appeal being brought,
or

(c)15any appeal brought within that period is finally determined,
abandoned or withdrawn.

(4)In this section “arbitration” means arbitration under Part 2.

24 Temporary restriction on initiating certain insolvency arrangements

(1)This section applies where the matter of relief from payment of a protected rent
20debt has been referred to arbitration.

(2)During the relevant period—

(a)no proposal for a company voluntary arrangement under section 1 of
the Insolvency Act 1986 which relates to the whole or part of the debt
may be made,

(b)25no proposal for an individual voluntary arrangement under section
256A of that Act, or an application for an interim order under section
253 of that Act, which relates to the whole or part of the debt may be
made, and

(c)no application for a compromise or arrangement under section 896 or
30901C of the Companies Act 2006 (court orders for holding of meetings)
which relates to the whole or part of the debt may be made.

(3)In this section “the relevant period” means the period beginning with the day
on which an arbitrator is appointed and ending with—

(a)where the arbitrator makes an award in accordance with section 14, the
35day which is 12 months after the day on which that award is made,

(b)where the arbitrator makes an award dismissing a reference under
section 13(2) or (3), the day on which that award is made, or

(c)where an award made in accordance with section 14 is set aside on
appeal, the day on which that decision is made, or

(d)40where the arbitration proceedings are abandoned or withdrawn by the
parties, the day of that abandonment or withdrawal.

(4)This section, so far as relating to a company voluntary arrangement and a
compromise or arrangement under section 899 or 901F of the Companies Act
2006, applies to limited liability partnerships (as well as to companies).

25 Temporary restriction on initiating arbitration proceedings

(1)The tenant or the landlord under a business tenancy may not initiate
arbitration proceedings (other than an arbitration under Part 2) in relation to a
protected rent debt during the moratorium period for the debt, unless the other
5party agrees.

(2)In this section “the moratorium period” has the meaning given by section 23(2).

26 Temporary restriction on winding-up petitions and petitions for bankruptcy
orders

Schedule 3 contains temporary provision in relation to winding up petitions
10and petitions for bankruptcy orders.

Part 4 Final provisions

27 Power to apply Act in relation to future periods of coronavirus control

(1)The Secretary of State may by regulations provide for this Act (apart from this
15section) to apply again in relation to rent debts under business tenancies
affected by closure requirements.

(2)For this purpose a business tenancy was affected by a closure requirement if—

(a)the whole or part of the business carried on at or from the premises
comprised in the tenancy, or the whole or part of those premises, was
20required by regulations to close, and

(b)the requirement was imposed as a public health response to the
incidence or spread of coronavirus.

In paragraph (b) “coronavirus” means severe acute respiratory syndrome
coronavirus 2 (SARS-CoV-2).

(3)25The regulations may—

(a)specify provisions of this Act which are not to apply;

(b)provide for provisions of this Act to apply with such modifications as
are specified in the regulations;

(c)make different provision for different purposes (including different
30provision for England and for Wales);

(d)make incidental, supplemental, consequential, saving or transitional
provision (including provision amending or otherwise modifying an
Act of Parliament).

(4)The regulations—

(a)35are to be made by statutory instrument, and

(b)may not be made unless a draft of the statutory instrument containing
them has been laid before and approved by a resolution of each House
of Parliament.

28 Crown application

40This Act binds the Crown (but without prejudice to section 2(5) which secures
that the business tenancies to which this Act applies are those to which Part 2
of the Landlord and Tenant Act 1954 applies).

29 Extent, commencement and short title

(1)Parts 1 to 3 extend to England and Wales only (except as provided by
subsection (2) and (3)).

(2)The following provisions extend to England and Wales, Scotland and Northern
5Ireland—

(a)in section 24—

(i)subsections (1), (2)(c) and (3), and

(ii)subsection (4) so far as relating to a compromise or arrangement
under section 899 or 901F of the Companies Act 2006,

(b)10Part 1 so far as relating to the provisions mentioned in paragraph (a),
and

(c)this Part.

(3)The following provisions extend to England and Wales and Scotland only—

(a)in section 24—

(i)15subsection (2)(a), and

(ii)subsection (4) so far as relating to a company voluntary
arrangement,

(b)paragraph 1 of Schedule 3 and section 26 so far as relating to that
paragraph, and

(c)20Part 1 so far as relating to the provisions mentioned in paragraph (a)
and (b).

(4)This Act comes into force on the day on which it is passed (except as provided
by subsection (5)).

(5)Paragraph 1 of Schedule 3, and section 26 so far as relating to that paragraph,
25comes into force on 1 April 2022.

(6)This Act may be cited as the Commercial Rent (Coronavirus) Act 2022.

SCHEDULES

Section 22

Schedule 1 Modifications of the Arbitration Act 1996 in relation to arbitrations under
this Act

15Part 1 of the Arbitration Act 1996 has effect in relation to arbitrations under
this Act as if the following were omitted—

(a)in section 14 (commencement of arbitral proceedings), subsections
(1) and (2);

(b)in section 15 (arbitral tribunal), in subsection (1), the words “or
10umpire”;

(c)sections 16 to 19 (appointment of arbitrators);

(d)in section 20 (chairman), subsections (1) and (2);

(e)section 21 (umpire),

(f)in section 22 (decision-making where no chairman or umpire),
15subsection (1);

(g)in section 23 (revocation of the arbitrator’s authority), subsections
(1), (2), (3)(a), (4) and (5)(a);

(h)in section 25 (resignation of arbitrator), subsections (1) and (2);

(i)in section 27 (filling of vacancy), subsections (1) to (3);

(j)20in section 30 (competence of tribunal to rule on its own jurisdiction),
in subsection (1), the words “Unless otherwise agreed by the parties”;

(k)in section 37 (power to appoint experts, legal advisers or assessors),
in subsection (1), the words “Unless otherwise agreed by the parties”;

(l)in section 38 (general powers exercisable by the tribunal),
25subsections (1) to (4);

(m)in section 39 (power to make provisional awards), in subsection
(2)(a), the words “or the disposition of property”;

(n)in section 48 (remedies), subsections (1), (2) and (5)(b) and (c);

(o)in section 49 (interest), subsections (1) to (3), (5) and (6);

(p)30in section 51 (settlement)—

(i)in subsection (1), the words “unless otherwise agreed by the
parties”; and

(ii)in subsection (2), the words “if so requested by the parties
and not objected to by the tribunal”;

(q)35in section 52 (form of award), subsections (1) and (2);

(r)in section 58 (effect of award), in subsection (1), the words “Unless
otherwise agreed by the parties”;

(s)in section 68 (challenging the award: serious irregularity), in
subsection (2)(e), the words “vested by the parties”.

2Part 1 of the Arbitration Act 1996 has effect in relation to arbitrations under
this Act as if —

(a)in section 20 (chairman), in subsection (3), at the beginning there
were inserted “Where there is a chairman,”;

(b)5in section 22 (decision-making where no chairman), in subsection (2)
for “If there is no such agreement” there were substituted “Where
there are two or more arbitrators with no chairman”;

(c)in section 34 (procedural and evidential matters), in subsection (1)
after “matters”, there were inserted “(including in relation to oral
10hearings held in public)”;

(d)in section 35 (consolidation of proceedings and concurrent hearings),
in subsection (2), for the words from “Unless” to “has no” there were
substituted “The tribunal also has”;

(e)in section 37 (power to appoint experts, legal advisers or assessors),
15in subsection (1)(a), after “tribunal may” there were inserted “, where
agreed by the parties”;

(f)in section 68 (challenging the award: serious irregularity), in
subsection (2)(c), the words “procedure agreed by the parties” were
substituted by “statutory procedure”.

320The modifications under paragraphs 1 and 2 are without prejudice to the
operation of sections 94 to 98 of the Arbitration Act 1996 in relation to other
provisions.

Section 23

Schedule 2 Temporary moratorium on enforcement of protected rent debts

25Preliminary: interpretation

1(1)This Schedule applies in relation to a protected rent debt under a business
tenancy.

(2)In this Schedule—

(a)references to “the protected debt” or “the debt” are to the whole or
30any part of that protected rent debt;

(b)“the business tenancy” is the business tenancy under which the
protected debt arose;

(c)“the landlord” and “the tenant” refer respectively to the landlord and
the tenant under that tenancy;

(d)35“the moratorium period”, in relation to the protected debt, has the
meaning given by section 23(2);

(e)a reference to doing something “in relation to” the protected debt
includes, where appropriate, its being done on the basis of the debt.

Making a debt claim

2(1)40The landlord may not, during the moratorium period for the debt, make a
debt claim to enforce the protected debt.

(2)In this paragraph “debt claim” means a claim to enforce a debt in civil
proceedings (including by a counterclaim or any other way of claiming
payment of a debt in such proceedings).

Debt claims made before the day on which this Act is passed

3(1)5This paragraph applies to proceedings on a debt claim which—

(a)is made on or after 10 November 2021 but before the day on which
this Act is passed,

(b)is made by the landlord against the tenant, and

(c)relates to, or to debts which include, the protected rent debt.

(2)10Either of the parties to the business tenancy may apply to the court for the
proceedings on the debt claim to be stayed in order to enable the matter of
payment of the protected rent debt to be resolved (whether by arbitration or
otherwise).

(3)Where such an application is made in respect of proceedings on a debt claim
15the court must stay the proceedings (unless it is satisfied that they are not
proceedings to which this paragraph applies).

(4)Sub-paragraphs (5) to (7) apply if judgment on the debt claim is given in
favour of the landlord during the period described in sub-paragraph (1)(a).

(5)So long as the judgment debt so far as relating to the protected rent debt, or
20any interest on it, is unpaid, then—

(a)the matter of relief from payment of the judgment debt so far as
relating to the protected rent debt, or any interest on it, may be
resolved by arbitration under Part 2 of this Act or by agreement (as
if that part of the judgment debt and any interest on it were a
25protected rent debt), despite the judgment having been given,

(b)the judgment debt, so far as relating to the protected rent debt or any
interest on it, may not be enforced or relied on by the landlord before
the end of the moratorium period for the protected rent debt, and

(c)if relief from payment is awarded or agreed, the effect of the
30judgment debt is to be taken as altered in accordance with the award
or agreement.

(6)Where it comes to the attention of the officer of the court in which the
judgment is entered that—

(a)the judgment relates solely to the protected rent debt,

(b)35relief from payment of the protected rent debt has been awarded
under Part 2 of this Act or agreed, and

(c)the moratorium period for the protected rent debt has ended,

the officer must send a request to the registrar to cancel the entry in the
register of judgments under section 98 of the Courts Act 2003.

(7)40Following receipt of a request under sub-paragraph (6), the registrar must
cancel the entry.

(8)In this paragraph—

• “debt claim” has the same meaning as in paragraph 2;

• “tenant” includes a person who has guaranteed the obligations of the
  45tenant under a business tenancy.