Land Reform (Special Provisions)(Amendment)

Land Reform (Special Provisions)(Amendment)

AN ACT AMEND THE LAND REFORM (SPECIAL PROVISIONS,AMENDMENT) ACT, No. 39 OF 1981

BE it enacted by the Parliament of the Democratic Socialist Republic of Sri Lanka as follows:

[24^th July
, 1986 ]

Short title.

1. This Act may be cited as the Land Reform (Special Provisions) (Amendment) Act, No. 18 of 1986.

Amendment of section 42 J of Act No. 39 of 1981.

2. Section 42J of the Land Reform (Special Provisions) Act, No, 39 of 1981 (hereinafter referred to as the “principal enactment”) is hereby amended by the repeal of subsection(2D) thereof and by the substitution therefor, of the following subsection:

“(2D)

(i) Where any public company receives any amount as compensation computed ill accordance with the provisions of subsection (2) or subsection (2A) or subsection (2B) , it shall be the duty of such company, notwithstanding anything in the Companies Ordinance or any other law, to distribute such compensation alter meeting its liabilities as are allowed by the Commission as being reasonable and having been incurred bona fide, to the share holders of such company within six months from the date of receipt of the compensation or where such compensation is received in instalments, within six months from the receipt of each instalment. No deduction shall be made by any such company from the amount of such compensation other than the amount of such liabilities as are allowed by the Commission as hereinbefore. provided.

(ii) Where the share capital of any such company as is referred to in subsection (1) i8divided into different classes of shares, the distribution of the compensation shall be in accordance with the rights attached to each class of shares.

(iii) For the purposes of paragraph (i), the expression” compensation” includes any Interest which has accrued due on such compensation and the expression” liabilities” in relation to a company, does. not include compensation or any other payment to any company for loss of business or to any director, employee or any other servant of any company for loss of office.”.

Retrospective operation of section 2.

3. The amendment made to the principal enactment by section 2 of this Act shall be deemed for all purposes to have come into force on June 3, 1981, and accordingly where at the hearing in any court or tribunal of any appeal, action, application or other proceeding (whether such appeal, action, application or proceeding was preferred or instituted before or after the date of commencement of this Act) any question arises as to whether the expression” compensation ‘f includes any interest which has accrued due on such compensation and as to the nature of the liabilities that can be deducted from such compensation, such question or matter shall be determined in accordance with the provisions of the principal enactment as amended by section 2 of this Act.