A person who claims to have incurred financial loss in consequence of a closure notice or a closure order may apply to the appropriate court for compensation.
The appropriate court is—
the magistrates' court that considered the application for a closure order (except where paragraph (b) applies);
the Crown Court, in the case of a closure order that was made or extended by an order of that Court on an appeal under section 84.
An application under this section may not be heard unless it is made before the end of the period of 3 months starting with whichever of the following is applicable—
the day on which the closure notice was cancelled under section 78;
the day on which a closure order was refused;
the day on which the closure order ceased to have effect.
For the purposes of subsection (3)(b) the day on which a closure order was refused is—
the day on which the magistrates' court decided not to make a closure order (except where paragraph (b) applies);
the day on which the Crown Court dismissed an appeal against a decision not to make a closure order.
On an application under this section the court may order the payment of compensation out of central funds if it is satisfied—
that the applicant is not associated with the use of the premises, or the behaviour on the premises, on the basis of which the closure notice was issued or the closure order made,
if the applicant is the owner or occupier of the premises, that the applicant took reasonable steps to prevent that use or behaviour,
that the applicant has incurred financial loss in consequence of the notice or order, and
that having regard to all the circumstances it is appropriate to order payment of compensation in respect of that loss.
In this section "central funds" has the same meaning as in enactments providing for the payment of costs.