1.— (1) Where an interest in land the value of which falls to be ascertained in accordance with the provisions of Part II of the Act of 1944 for the purposes of the compensation payable on a compulsory acquisition thereof is an interest in a hereditament or part of a hereditament which has sustained war damage, then if—

1. (a) by virtue of Section fourteen of the War Damage Act, 1943, or of any direction given by the Treasury under Section twenty of that Act, a value payment falls to be made in respect of the damage so far as not made good before the date of the acquisition; and
2. (b) the amount of that payment falls to be increased by virtue of the War Damage (Increase of Value Payments) Order, 1947. or any subsequent Order made by the Treasury under Section eleven of the said Act; and
3. (c) the person entitled to the compensation payable in respect of the compulsory acquisition of the interest in question is also entitled by virtue of Section fifty-eight of the Act of 1944 either as originally enacted or as amended by the Acquisition of Land (Increase of Supplement) Order, 1946, or any subsequent Order made by the Treasury under Section sixty of that Act, to receive a supplement to that compensation, the amount of the compensation payable in respect of the compulsory acquisition shall be reduced in the manner provided by this paragraph by such sum as may be appripriate, not exceeding the amount by which the value payment is increased as aforesaid, or the amount of the supplement payable as aforesaid, whichever is the less.