51Compensation

51 Compensation

(1)  A person bound by a prohibition order issued under section 50 who suffers loss as a result of the issuing or variation of the order or the refusal by the Chief Inspector to revoke the order, may apply to the Chief Inspector for compensation if the person considers that there were no reasonable grounds for the issuing or variation of the order, or alternatively, for refusing to revoke the order.

(2)  If, after considering an application under subsection (1) , the Chief Inspector determines that there were no reasonable grounds for the issuing or variation of the prohibition order or for the refusal to revoke the prohibition order, the Chief Inspector is to pay such compensation to the applicant as is just and reasonable.

(3)  The Chief Inspector is to serve written notice on the applicant of his or her determination as to the payment of compensation under this section.

(4)  If the Chief Inspector has not determined an application for compensation under this section within 28 days of receiving the application, the Chief Inspector is taken to have –

(a) decided to have refused to pay any compensation; and

(b) served the applicant with a written notice of that decision on the day on which the 28 day period expired.