Finance and Ceylon State Mortgage Bank (Amendment

Finance and Ceylon State Mortgage Bank (Amendment A LAW TO AMEND THE FINANCE ACT, NO. 11 OF 1963 AND THE CEYLON STATE MORTGAGE BANK ORDINANCE. BE it enacted by the National State Assembly of the Republic of Sri Lanka as follows: Short title. 1. This Law may be cited as the Finance and Ceylon State Mortgage Bank (Amendment) Law, No. 16 of 1973. PART IAMENDMENTS TO THE FINANCE ACT, NO. 11 OF 1963. Amendment of section 71 of Act No. 11 of 1963. 2. Section 71 of the Finance Act, No. 11 of 1963, hereinafter referred to as the ” principal enactment ” , is hereby amended as follows: – (1) by the repeal of subsections (1) and (2) of that section and the substitution therefor, of the following new subsections: – (1) Subject to the provisions of subsection (2), the Bank is hereby authorized to acquire the whole or any part of any agricultural, residential or business premises, if the Bank is satisfied that those premises were, at any time before or after the appointed date but not earlier than the first day of January, 1952,- (a) sold in execution of a mortgage decree entered by a court against the owner of such premises (hereafter in this Part of this Act referred to as the ” original owner “); or (b) transferred by the owner of those premises (hereafter in this Part of this Act referred to as the ” original owner “) or his heirs, executors or administrators to any other person or the heirs, executors or administrators of any other person in satisfaction of a debt which was due from the original owner; or his predecessor in title to that other person and which was secured by a mortgage of those premises subsisting immediately prior to the transfer; or (c) transferred by the owner of those premises (hereafter in this Part of this Act referred to as the ” original owner “) or his heirs, executors or administrators to any other person, at the request of a mortgagee of those premises, in satisfaction or part satisfaction of a debt which was due from’ the original owner or his predecessor in title to that mortgagee and which was secured by a mortgage of those premises subsisting immediately prior to the transfer; or (d) transferred by the owner of such premises to any other person after receiving from such other person a sum of money as consideration for such transfer and upon the condition that, on the repayment by the transferor (hereafter in this Part of this Act referred to as the ” original owner “) of that sum with or without interest thereon within a specified period, such other person will re-transfer those premises to the original owner. (2) No premises shall be acquired under subsection (1)- (a) unless an application in that behalf has been made to the Bank by the original owner of such premises or, where such original owner is dead or is of unsound mind or otherwise incapable of acting, by the spouse or any descendant of such person, or if there is no surviving spouse or descendant of such person, by a parent, brother or sister of such person; or (b) if an application in that behalf had earlier been made to the Ceylon State Mortgage Bank under Chapter V A of the Ceylon State Mortgage Bank Ordinance, as amended by Act No. 33 of 1988, and the Ceylon State Mortgage Bank had determined that such premises should not be acquired or if a vesting Order in respect of such premises had been revoked by a divesting Order under section 70D of that Ordinance, as so amended; or (c) unless the Bank is satisfied that the average statutory income of the person making the application and of the other members of the family of which he is the head, computed under the provisions of the written law relating to the imposition of income tax, for the three years of assessment immediately preceding the date on which such application was made by him, does not exceed a sum of ten thousand rupees; or (d) if the Bank is satisfied that the premises to which the application relates are reasonably required for occupation as a residence for the owner of those premises or any member of the family of such owner or for the purposes of any trade, business, profession, vocation or employment of such owner or any member of his family and that such owner or member of his family has no other premises which could be used for the purpose for which the premises to which the application relates are being used; or (e) unless, in the case of an application relating to any agricultural premises, the Bank is satisfied that the applicant is not the owner of any other agricultural premises exceeding ten acres in extent. For the purposes of paragraph (d) of this subsection, ” member of the family “, when used in relation to any person means the spouse of that person or any son or daughter of that person over eighteen years of age, or any parent, brother or sister dependent on that person.’; and (3) by the insertion immediately after subsection (2) of that section, of the following new subsections: – (2A). Where the Bank entertains an application for the acquisition of any premises referred to in subsection (1), the Bank shall- (a) cause notice of the fact to be sent by registered post to the owner of the premises; and (b) cause a copy of such notice to be delivered or transmitted to the proper Registrar of Lands for registration, setting out the prescribed particulars relating to such premises and stating that such premises may be acquired under this Part of this Act. Every notice under paragraph (b) shall be registered by the Registrar of Lands in the manner prescribed in the Registration of Documents Ordinance for the registration of an instrument affecting or relating to land and shall be deemed for such purposes to be an instrument affecting or relating to premises the prescribed particulars of which are set out in such notice: Provided that if the Bank determines that such premises shall not be acquired for the purposes of this Part of this Act, the Bank shall forthwith cancel such notice and give written information of the cancellation to the Registrar of Lands who shall register such cancellation. (2B) (a) Where the owner of any premises receives a notice under subsection (2A) relating to an application in respect of the premises, such owner shall not sell, gift, transfer, lease, mortgage or otherwise alienate the premises unless or until such application is dismissed by the Bank. (b) Any sale, gift, transfer, lease mortgage or other alienation of any premises in contravention of the provisions of paragraph (a) of this subsection shall be null and void.”. Amendment of section 72 of the principal enactment. 3. Section 72 of the principal enactment is hereby amended by the repeal of subsection (7) of that section, and the substitution therefor, of the following new subsections: – “(7) Where any person in occupation or in possession of such premises or any person interested in such premises or his authorized agent is not present on the date and at the time and place specified in the notice given under subsection (5), or if any such person is present but refuses to allow the authorized officer to take possession of such premises, the authorized officer shall, upon application made to the District Court having jurisdiction over the place where such premises are situate, and upon production of the vesting Order made under subsection (2), be entitled to obtain an order for delivery of possession of such premises. (8) Every application made under subsection (7) shall be made, and shall be disposed of, by way of summary procedure in accordance with the provisions of Chapter XXIV of the Civil Procedure Code; and on all documents filed for the purposes of each such application and on all proceedings held thereupon, stamp duties and other charges shall be payable at the respective rates payable under any written law for the time being in force, on application for, and proceedings connected with or incidental to, the execution of a decree of a District Court for the delivery of possession of a property of the same value as the property to which such application relates.”. Insertion of new section 72a in the principal enactment. 4. The following new section is hereby inserted immediately after section 72, and shall have effect as section 72A, of the principal enactment: – Revocation of vesting Order. 72A. (1) Notwithstanding that any premises have vested in the Bank by virtue of a vesting Order, the Minister may at any time by a subsequent Order published in the Gazette (hereafter in this section referred to as a ” divesting Order “) revoke that vesting Order. (2) The following provisions shall apply in any case where a vesting Order in respect of any premises is revoked by a divesting Order: – (a) such premises shall be deemed never to have vested in the Bank by virtue of that vesting Order and any question which might arise as to any right, title or interest in or over such premises shall be determined accordingly; and (b) all claims under this Part of this Act to the compensation payable in respect of such premises, and all proceedings taken under this Part of this Act in regard to such claims, before that vesting Order was revoked shall be deemed to be null and void. (3) The preceding provisions of this section shall have effect notwithstanding anything in any other provisions of this Act or in any other written law.” Replacement of section 76 of the principal enactment. 5. Section 76 of the principal enactment is hereby repealed and the following new section is substituted therefor: – “Compensation in respect of premises vested in the Bank under this Part of this Act. 76. The amount of compensation to be paid under this Part of this Act in respect of any premises vested in the Bank shall be either the actual amount for which such premises were purchased by, or transferred to, the owner thereof together with such interest thereon as may have been determined by the Compensation Tribunal, and an additional sum which is equal to the reasonable value of any subsequent additions and improvements made to such premises by any person who was interested in such premises before the publication of the vesting Order in regard to such premises or the market value of such premises, whichever is less.”. Replacement of section 92 of the principal enactment. 6. Section 92 of the principal enactment is hereby repealed and the following new section is substituted therefor: – ” Power to enter, survey, &c. 92. (1) Where the Bank considers it necessary that an inspection, examination or survey should be made of any premises which the Bank is authorized under this Part of this Act to acquire, it shall be lawful for any person authorized in that behalf by the Chairman of the Board of Directors of the Bank, together with such persons, implements, materials, vehicles and animals as may be necessary, to enter upon and to take levels of such premises, and to do all such other acts as may be necessary for the purpose for such inspection, examination or survey: Provided, however, that no person shall enter or do any act upon any premises in pursuance of the powers conferred on him by the preceding provisions of this section except after giving the owner or occupier of those premises, in the prescribed manner, not less than seven days’ notice of his intention to enter those premises or to do such act thereon. (2) Every person who- (a) prevents, obstructs or resists; or (b) directly or indirectly causes anyone to prevent, obstruct or resist, any person authorized under subsection (1), from doing any act or thing which he is so authorized to do, shall be guilty of an offence under this Part of this Act, and shall, on conviction after summary trial before a Magistrate, be liable to imprisonment of either description for a period not exceeding one year or to a fine not exceeding one thousand rupees or to both such imprisonment and fine. “. Insertion of new section 96A in the principal enactment. 7. The following new section is hereby inserted immediately after section 96, and shall have effect as section 96A. of the principal enactment: – Applications made to the Ceylon State Mortgage Bank deemed to be applications made to the People’s Bank. 96A. Every application made to the Ceylon State Mortgage Bank under section 70B (2) of the Ceylon State Mortgage Bank Ordinance, as amended by Act No. 33 of 1968, other than an application in consequence of which any premises have been let to any person under section 70Y of that Ordinance, shall be deemed to be an application made to the People’s Bank under section 71(2) of this Act, and accordingly,- (1) any determination made by the Ceylon State Mortgage Bank under section 70B(6) of that Ordinance in respect of any such application made to it, shall be deemed to be a determination made by the People’s Bank under section 71(8) of this Act; (2) any premises vested in the Ceylon State Mortgage Bank under section 70C(3) of that Ordinance in consequence of any such application made to it, shall be deemed to be vested in the People’s Bank under section 72(3) of this Act; (3) any award made under section 70x of that Ordinance by the Compensation Tribunal established under that Ordinance, in consequence of any such application made to the Ceylon State Mortgage Bank, shall be deemed to be an award made under section 90 of this Act by the Compensation Tribunal established under this Part of this Act, and (4) all such further action, proceedings or steps as are required to be taken by the Ceylon State Mortgage Bank under the provisions of that Ordinance in respect of any such application made to that Bank as is by virtue of the provisions of this section deemed to be an application made to the People’s Bank, shall be taken by the People’s Bank under the corresponding provisions of this Act.”. Repeal of section 98A of the principal enactment. 8. (1) Section 98A of the principal enactment (inserted therein by Act No. 33 of 1968) is hereby repealed. (2) With effect from the date of commencement of this Law, applications under section 71(2) of the principal enactment may be made to, or entertained by, the People’s Bank. PART IIAMENDMENT TO THE CEYLON STATE MORTGAGE BANK ORDINANCE Insertion of new section 70FF in Chapter 398 9. The following new section is hereby inserted immediately after section 70EE, and shall have effect as section 70FF, of Chapter V A of the Ceylon State Mortgage Bank Ordinance: – “No application tinder section 70B (2) to be entertained on or after the date appointed by the Minister. 70FF. Notwithstanding anything to the contrary in any other provisions of this Chapter, no application under section 70B(2) of this Chapter shall be made to, or entertained by, the bank, on or after such date as may be fixed in that behalf by the Minister by Order published in the Gazette.”.