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CENTRE FOR CONTINUING EDUCATION

EXECUTIVE MBA

(POWER MANAGEMENT)

BATCH: _______________________

SEMESTER: _______________________

NAME: _______________________

SAP NO/REGN NO: _______________________

ASSIGNMENT – 1

FOR

Power Industry Accounting

MBPF 911

Last date for submission: 15th Mar.2013

UNIVERSITY OF PETROLEUM & ENERGY STUDIES

[pic]

Section A

Write Short notes on the following (Marks:4*5)

1. Dilapidation Dilapidations are breaches of lease covenants to repair. Dilapidations costs are often wrongly anticipated by tenants as insignificant by comparison with rent, rates and service charges. However, repair costs can be significant.

Limiting Dilapidations

The principal form of statutory relief available to the tenant at the end of the lease against a claim for damages is Section 18 (1) of the Landlord & Tenant Act 1927. This statute has two limbs. The first states that the landlord cannot recover damages exceeding the sum by which the landlord's investment has been devalued by the dilapidations. This devaluation is also called the "diminution to the reversion". This may mean that the damages awarded are less than the cost of repairs, even where the disrepair is not disputed. The second limb is potentially an absolute defense; where a tenant proves that a landlord would have, at the end of the lease or shortly thereafter, either demolished the premises or carried out such structural alterations that the disrepair becomes irrelevant. No damages will be recoverable by the landlord in respect of the relevant breaches.

Estimates of dilapidations based upon merely the cost of works are not sufficient to satisfy the HMRC and any assessment must take account of the

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