NATIONAL HOUSING

(a) the construction of buildings for residential purposes and for any other purpose connected with or incidental to any of the objects hereinafter specified;

(b) the manufacture, importation or supply of materials required for the construction of such buildings;

(c) the provision of roads, water, electricity, gas, and sewerage ;

(d) the administration, management or control of buildings and building schemes;

(e) the provision of amenities for the inhabitants of any area in which any housing scheme has been carried out including transport and other services;

(f) any other prescribed object;

(g) any object reasonably connected with or ancillary to any of the objects specified in paragraphs (a) to (f) of this section;

(h) the development of land for the carrying out of any of the objects hereinbefore specified; and

(t) the grant of assistance for the purpose of enabling the carrying out of any of the objects hereinbefore specified by the lending of money in any manner whatsoever or by the undertaking of guarantees or by promoting, effecting, insuring, guaranteeing, underwriting, participating in the managing and carrying out of any issue, public or private, of Government or other loans or of shares, stock, debentures or debenture stock of any body corporate and by the lending of money for the purpose of any such issue.

(a) the power to acquire, or to receive by way of gift or otherwise, any immovable or movable property and to hold, manage, sell, surrender, exchange, lease or otherwise dispose of such property, for the purpose of carrying out any housing object;

(b) the power to borrow money for that purpose;

(c) the power to charge rent or fees for any buildings or any services provided by the carrying out of any housing object; and

(d) the power to enter into such contracts and to make such arrangements or to do all such acts and things as may be necessary or expedient for the purpose of carrying out any housing object,

(1) The Commissioner shall administer the National Housing Fund. All payments out of the fund shall be made by the Commissioner.

(2) The accounts of the National Housing Fund shall be audited annually by the Auditor-General. The accounts for each year together with a report of the Auditor-General thereon shall be laid before Parliament.

(1) The Minister may from time to time, under the authority of a resolution of Parliament, raise a loan not exceeding such sum as may be specified in the resolution for the purposes of the National Housing Fund. Such loan shall be raised in such manner and on such terms as may be prescribed.

(2) All sums raised by way of loan by the Minister shall be credited to the National Housing Fund and all sums due as principal and interest on such loans shall be a charge on that fund.

(3) No stamp duty shall be payable in respect of any debenture issued for the purpose of any loan raised by the Minister under subsection (1) or in respect of any instrument of transfer of any such debenture.

(1) There shall be paid into the National Housing Fund-

(2) There shall be paid out of the National Housing Fund-

(1) There shall be appointed, by name or by office, a person to be or to act as the Commissioner for National Housing.

(2) In the exercise, discharge or performance of the powers, functions or duties assigned to or imposed on him under this Act, the Commissioner shall be subject to the general or special directions of the Minister.

(1) There shall be appointed-

(2) In the exercise, discharge or performance of the powers, functions or duties assigned to or imposed on him under this Act, a Deputy Commissioner or an Assistant Commissioner shall be subject to the general or special directions of the Commissioner.

(1) by subscribing their names to an instrument of association approved by the Commissioner; and

(2) by registering such instrument with the Commissioner, form an incorporated building society with limited liability.

(I) The instrument of association of a building society must state”

(2) The instrument of association of a building society must, if the society is to be terminated or dissolved on a particular date or in particular circumstances, state that date or those circumstances and the manner in which the society is to be so terminated or dissolved.

(3) The instrument of association of a building society shall make provision”

(4) The instrument of association of a building society shall make provision for the management of the business of the society by a board of directors.

(5) The powers of a building society as stated in its instrument of association may include the power to hold land and mortgages over land, to make advances to members out of the stock or fund of the society and to borrow money, and such other powers as may be necessary for the purpose of carrying out its object.

(1) The instrument of association of a building society shall, after it has been approved by the Commissioner, be delivered to the Commissioner who shall retain and register such instrument upon payment of the prescribed fee.

(2) All sums paid as fees under subsection (1) shall be credited to the National Housing Fund-

(1) On the registration of the instrument of association of a building society, the Commissioner shall certify under his hand that the building society is incorporated and that the society is limited.

(2) From the date of incorporation mentioned in the certificate of incorporation, the subscribers of the instrument of association together with such other persons as may from time to time become members of the building society shall be a body corporate by the name contained in such instrument by which it may sue or be sued, capable forthwith of exercising, discharging and performing all the powers, functions and duties assigned to or imposed on the society by such instrument or by or under this Act, and having perpetual succession (except as otherwise provided in such instrument) and a common seal.

(3) The instrument of association shall, when registered, bind the building society and the members thereof to the same extent as if they had been signed by each member, and contained covenants on the part of each member to observe all the provisions of the instrument.

(4) All money payable by any member to the building society under its instrument of association shall be a debt due from him to the society.

(1) A building society may alter the provisions of its instrument of association,

(2) The alteration shall not take effect until it has been approved by the Commissioner.

(3) The Commissioner may in his discretion approve or refuse to approve of the alteration. The decision of the Commissioner on an application for the Commissioner’s approval of the alteration of the provisions of the instrument of association of a building society shall, if an address is specified in the application, be notified in writing to the applicant at that address.

(4) The Commissioner may of his own motion alter the instrument of association of any building society; and any alteration so made by the Commissioner shall take effect as though it had been made by the society and approved by the Commissioner.

(1) A building society shall, on being so required by any member, send him a copy of its instrument of association upon payment of the prescribed fee. All sums paid as fees under the preceding provisions of this section shall be credited to the fund of the society.

(2) Where any alteration is made in the instrument of association of a building society, every copy of the instrument issued after the alteration has taken effect as hereinbefore provided in this Act shall be in accordance with the alteration.

(1) The subscribers of the instrument of association of a building society shall be deemed to have agreed to become members of the society, and on its registration shall be entered as members in its register of members which it is hereby required to keep and maintain.

(2) Every other person who agrees to become a member of a building society, and whose name is entered in its register of members, shall be a member of the society.

(1) Contracts on behalf of a building society may be made in the prescribed manner.

(2) A contract made according to this section shall be effectual in law and shall bind the society and all other parties thereto and their legal representatives.

(3) A contract made according to this section may be varied or discharged in the same manner in which it is authorized under this section to be made.

(1) The provisions of the Companies Ordinance*, (other than the provisions of that Ordinance which are made applicable to a building society under this Act), or of any other written law relating to companies, shall not apply to a building society.

(2) Notwithstanding anything in subsection (1), the Minister may, whenever it shall seem to him expedient to do so, by Order published in the Gazette declare, as respects any particular building society or building societies generally, that any such provisions of the Companies Ordinance* as are not for the time being applicable to such society or societies or the provisions of any other written law relating to companies, shall apply to such society or societies, and accordingly so long as that Order remains in force the provisions so applied shall mutatis mutandis apply in the case of such society or societies, as the case may be, in the manner and to the same extent as they apply in the case of a company.

(1) The Commissioner may, by order in writing, direct the board of directors of a building society to summon a meeting of that society for the purpose of discussing and deciding such matters relating to that society as he may specify in such order. Such meeting shall be held at such time and place as the Commissioner may determine.

(2) The Commissioner or any person authorized by him in that behalf may preside at any meeting of a building society summoned under subsection (1) and may speak on any matter to be decided at such meeting but he shall not be entitled to vote upon any such matter.

(3) The preceding provisions of this section shall have effect notwithstanding anything in the instrument of association of a building society.

(1) The Commissioner may, by written notice, direct any building society”

(2) If default is made in complying with any direction given to a building society by the Commissioner under subsection (1), every member of the board of directors of that society shall be guilty of an offence;

Provided that no such member shall be guilty of an offence under this section if he proves that such offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(3) Every person who is guilty of an offence under this section shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding five hundred rupees or to imprisonment of either description for a period not exceeding six months or to both such fine and imprisonment.

(1) The Commissioner may, of his own motion, and shall, on the application of a majority of the members of the board of directors of a building society or of not less than one-third of the members of a building society, hold an inquiry, or direct by order in writing an officer (hereafter in this section referred to as an ” authorized officer “) of the Department of National Housing to hold an inquiry, into the affairs of such society.

(2) For the purposes of an inquiry under subsection (I), the Commissioner or an authorized officer may”

(3) Every person who”

(1) Notwithstanding anything to the contrary in the instrument of association of a building society, the Commissioner may, by order in writing, remove from office any person who is a member of the board of directors of such society if such person has done any act or thing which, in the opinion of the Commissioner, is of a fraudulent or illegal character or is manifestly opposed to the objects or interests of the society.

(2) Before an order under subsection (1) is made against any person, the Commissioner shall give that person an opportunity of being heard and of showing cause why such an order should not be made.

(1) The Minister may, upon application made in that behalf, by Order published in the Gazette declare that any body of persons specified in the Order shall be a housing body for the purposes of this Act.

(2) No Order shall be made by the Minister under subsection (1) in respect of any body of persons which is a building society or building company.

(1) For the purpose of constructing houses and providing amenities and services for its members or employees, any housing body may carry out any such housing object, and may exercise any such housing and other powers, as may be necessary for that purpose; and any houses constructed by that body may be let on such terms as would enable the tenant of each such house to be its owner after making a certain number of monthly payments as rent.

(2) The provisions of subsection (1) shall have effect notwithstanding anything in the memorandum or articles of association, or in the written law, charter or other instrument, by which a body of persons which is a housing body for the purposes of this Act has been established.

(1) The Minister may, upon application made in that behalf, by Order published in the Gazette declare that any company specified in the Order shall be a building company for the purposes of this Act.

(2) No Order shall be made by the Minister under subsection (1) in respect of any company unless the object or objects of the company as stated in its memorandum of association consists or consist solely of any housing object or objects.

(1) For the purpose of carrying out any housing object or objects stated in its memorandum of association, any company which is declared to be a building company under this Act shall have and may exercise any such housing and other powers as may be necessary for that purpose.

(2) The provisions of subsection (1) shall in their application in the case of a company which is declared to be a building company under this Act have effect notwithstanding anything to the contrary in any written law relating to companies or in the memorandum or articles of association of the company.

(1) This Part shall apply to every house provided by the Commissioner or by a building company, building society or housing body for occupation by any person, whether such occupation is upon the payment of any rent or not.

(2) Where a house is provided by the Commissioner for occupation by any person, then, with reference to that house, the expression ” landlord” in this Part means the Commissioner, and the expression ” occupier” in this Part means that person.

(3) Where a house is provided by a building company, building society or housing body for occupation by any person, then, with reference to that house, the expression ” landlord ” in this Part means such company, society or body, and the expression ” occupier ” means that person.

(1) The occupier of any house to which this Part applies, his dependants and every other person occupying such house or any portion thereof shall not be entitled to occupy such house or portion thereof after the date of the lawful termination of the occupation of such house by the occupier; and accordingly the occupier shall on that date vacate the house, deliver possession thereof to his landlord and depart from the land or premises on which such house is situated, together with his dependants, and every other person occupying such land or premises or any portion thereof shall on that date vacate such land or premises.

(2) Where any house to which this Part applies is provided by the landlord for occupation by any person in the employment of that landlord, that person’s occupation of such house shall be deemed, for the purposes of this Part, to be lawfully terminated on the date of the lawful termination of the employment of that person.

(3) Where in any case referred to in subsection (2) the employment of the occupier is terminated without notice, the reference in that subsection to the date of the lawful termination of his employment shall be deemed to be a reference to the date fourteen days after the actual date of termination.

(1) In any case where the occupier of any house to which this Part applies fails to comply with the provisions of subsection (1) of section 32, it shall be lawful for the landlord to file, in the District Court of the district in which the house is situated, an application praying for the recovery of possession of the house, and for the ejectment from the land or premises on which the house is situated of the occupier, his dependants and every other person occupying such land or premises or portion thereof. Every such application shall be supported by an affidavit setting forth the time and manner of the termination of the occupation of the occupier.

(2) On receipt of an application under subsection (1), the court shall cause to be served on the occupier a copy of the application and affidavit and a rule nisi requiring him”

(3) A rule nisi under subsection (2) shall be deemed to have been duly served on the occupier if it is delivered to him by the Fiscal or by any person authorized by the Fiscal, or where it cannot be so delivered, if it is posted by the Fiscal, or person authorized as aforesaid on some conspicuous part of the house to which the rule relates.

(1) If any occupier upon whom a rule nisi is served under this Part appears before the court on the date specified in the rule and, by affidavit or by statement on oath or affirmation, raises any defence, which in the opinion of the court necessitates an adjournment of the hearing, the court shall immediately settle and record the issue or issues raised and shall, having regard to the circumstances of the case, appoint as early a date as possible for the hearing of evidence; and in such case the Registrar of the court shall thereupon issue a summons to every such witness as may be required by the parties commanding his attendance at the time and place specified in the summons.

(2) Where any date is appointed under subsection (1) for the hearing of any case, the hearing shall not again be adjourned for any later date”

(3) On the date appointed under subsection (1) for the hearing of the case or on such other date, if any, to which such hearing may be adjourned under subsection (2), the court shall hear and determine the issues raised and give judgment thereon, notwithstanding anything to the contrary in any other written law.

(1) If any occupier upon whom a rule nisi has been served under this Part, does not appear on the date specified in such rule or on such other date, if any, to which the hearing may be adjourned under this Part or, having appeared, fails to show good and valid cause why he should not deliver possession as required by section 32 of the house specified in the rule and depart from the land or premises on which it is situated, together with his dependants and every other person occupying such land or premises or any portion thereof, the rule nisi shall be made absolute; and the court shall forthwith issue, and if need be reissue a writ of possession to the Fiscal of the Court requiring and authorizing him before a date specified in the writ, not being earlier than three, or later than seven, clear days from the date of the issue of such writ, to deliver possession of the house to the landlord or to any other person appointed by the landlord for the purpose and to eject from the land or premises on which the house is situated, the occupier, his dependants and every other person occupying such land or premises or any portion thereof. Such writ shall be sufficient for the said Fiscal or any police officer authorized by him in that behalf to enter the house with such assistants as the Fiscal or such officer shall deem necessary and to give possession accordingly, and to eject from the house and from such land or premises the occupier, his dependants and every other person occupying such land or premises ;

Provided, however, that where the court is satisfied that it is expedient, for any reasonable cause as hereinafter defined, that the issue of the writ should be postponed, the court may direct that such writ shall not be issued unless the occupier fails to deliver possession of the house and to depart from such land or premises, together with his dependants and every other person occupying such land or premises or any portion thereof, before a date specified in that behalf by the court.

(2) In the preceding proviso, ” reasonable cause” means”

(1) The Minister may, from time to time, direct the Commissioner to carry out, on behalf of the Government, any housing object of any class or description referred to in paragraphs (a) to (A) of section 2.

(2) The costs incurred by the Commissioner in carrying out any housing object on behalf of the Government under subsection (1), including all sums payable under any contracts entered into or any arrangements made by him for that purpose, shall be a charge on the National Housing Fund.

(1) The Commissioner may, with the approval of the Minister, carry out any housing object in or upon any land by agreement with all the owners of that land, or in the absence of such agreement, by agreement with the majority of such owners, and on such terms as to the apportionment among, and payment by, such owners of the costs incurred by the Commissioner in carrying out that object as may be specified in the agreement.

(2) Regulations may be made under this Act providing”

(3) Where any agreement under subsection (1) is entered into in relation to any land, every owner of that land shall, notwithstanding that he is not a party to the agreement, be bound by the agreement in like manner and to the same extent as though he were a party thereto.

(1) The Commissioner may, in accordance with regulations which are hereby authorized and required to be made for that purpose under this Act, grant loans from the National Housing Fund to any person for the carrying out of any housing object. Such regulations may make provision for and in respect of all such matters as may be deemed necessary or expedient for the purpose including the terms and conditions subject to which such loans may be granted.

(2) All sums recovered as principal and interest on any loans granted from the National Housing Fund shall be credited to that fund.

(1) Every application for a loan from the National Housing Fund shall be made to the Commissioner on such form as the Commissioner may provide for the purpose, and shall contain the particulars required to be stated by the applicant, and shall be accompanied by copies of such plans, estimates, specifications, and other documents as may be required by the Commissioner.

(2) Where a loan from the National Housing Fund is granted upon an application made under subsection (I), the Commissioner may, until all sums due on such loan are repaid in full, retain in his custody the copies of the plans, estimates, specifications and other documents which accompanied such application.

(1) No property which is security for a loan granted from the National Housing Fund shall, where the construction of the building or buildings for the construction of which the loan was granted is not completed, be sold, gifted, leased or otherwise alienated except with the written permission of the Commissioner and in accordance with such conditions as he may impose.

(2) Notwithstanding anything to the contrary in any other written law, any disposition of any property to which subsection (1) applies shall, if it is in contravention of that subsection, be invalid.

(1) The Minister in charge of the subject of Finance may, in accordance with regulations which are hereby authorized and required to be made for that purpose under this Act, guarantee the repayment of the principal and interest due on any loan (other than a loan from the National Housing Fund) for the carrying out of any housing object. Such regulations may make provision for and in respect of all such matters as may be deemed necessary or expedient for that purpose including the terms and conditions subject to which such guarantees may be undertaken.

(2) The payment of any sum of money guaranteed by the Minister in charge of the subject of Finance under subsection (1) is hereby charged on the Consolidated Fund.

(1) The Minister may, by notification published in the Gazette, certain declare that it is necessary to acquire for the purposes of this section the premises referred to in any of the following cases :”

(2) Where a notification under subsection (1) is published in the Gazette, the premises to which such notification relates shall, for the purposes of the Land Acquisition Act, be deemed to be land needed for a public purpose and may be acquired under that Act.

(3) Where any premises referred to in paragraph (c) of subsection (1) are acquired as provided in subsection (2), the Commissioner shall let those premises to the person referred to in that paragraph as the mortgagor, or the transferor, as the case may be, of those premises on such terms as will enable him to become the owner thereof after making a certain number of monthly payments as rent.

(3A) Where any premises referred to in paragraph (f) of subsection (1) are acquired as provided in subsection (2), the Commissioner may let any building constructed on such premises to any person for rent, and the letting may be on such terms as will enable the tenant to become the owner of such building after making a certain number of monthly payments as rent.

(4) Where any premises other than those referred to in subsection (3) or subsection (3A) are acquired as provided in subsection (2), the Commissioner may let such premises to any person for rent for the purpose of residence or for a commercial purpose or partly for the purpose of residence and partly for a commercial purpose, and the letting may be on such terms as will enable the tenant to become the owner of such premises after making a certain number of monthly payments as rent.

(1) A disposition of any State land”

(2) In determining the conditions subject to which a disposition of State land should be made under this Act the Minister shall have regard primarily to the interests of the public generally including those of persons requiring housing accommodation, and shall in particular have regard to the following considerations of policy, that is to say, that it is desirable, except in special circumstances, that any houses constructed in or upon that land should be let at a reasonable rent to individuals who are citizens of Sri Lanka and that they should be so let on such terms as will enable the occupiers thereof to become the owners of such houses after making a certain number of monthly payments as rent.

(3) A disposition of any State land under this Act shall, in addition to such conditions as may be imposed by the Minister, be subject to the condition that the grantee deposits in the National Housing Fund such sum as may be determined by the Commissioner and that the sum so deposited shall be forfeited to the fund if there is a breach of any condition to which such disposition is subject.

(4) Without prejudice to the discretion vested in the Minister to determine the conditions subject to which a disposition of State land may be made under this Act, regulations may be made prescribing the conditions subject to which any such disposition may be made. Regulations so made may provide”

(5) A disposition of State land under this Act shall be effected by an instrument of disposition signed and executed by the appropriate authority.

(6) Nothing in the State Lands Ordinance shall affect or be deemed or construed to affect any disposition of State land under this Act.

(7) No stamp duty shall be payable in respect of any instrument of disposition of State land under this section.

(8) Where a disposition of State land is to be made under this section, the Commissioner may, if there is no plan of that land made by the Surveyor-General’s Department, cause a survey and plan of that land to be made by a surveyor of the Department of National Housing or by any licensed surveyor approved by the Surveyor-General.

(a) in the event of a failure to comply with any condition of such disposition; or

(b) in the event of any moneys due to the State under such instrument remaining unpaid for any period of time specified therein, and where there is such a failure or where such moneys remain unpaid for the period so specified, as the case may be, the appropriate authority may by endorsement on such instrument cancel such disposition, and such disposition shall be determined accordingly:

Provided, however, that such endorsement shall not be made on such instrument until the grantee under such instrument has been afforded an opportunity of showing cause against the proposed cancellation.

(1) A copy of the instrument of disposition of any State land under this Act shall be authenticated by the signature of an officer authorized in that behalf by the appropriate authority and shall be deposited for purposes of record at the office of the Registrar of Lands of the district in which that land is situated and at any other office which the Minister may from time to time appoint.

(2) Any such copy as is referred to in subsection (1) shall, if authenticated in the manner specified in that subsection, be primary evidence, within the meaning of section 62 of the Evidence Ordinance, of the instrument of which it purports to be a copy.

(1) Where any person is in possession of any State land in pursuance of an agreement (whether such agreement was entered into before or after the coming into operation of this section) between himself and the Commissioner and the Commissioner is satisfied having regard to the extent of State land available at his disposal for the construction of houses in the area within which such land is situated, that it is expedient to recover possession of such land, he may, notwithstanding anything in this Act or in the terms of such agreement, cancel such agreement by notice in writing to the parties to such agreement, and such agreement shall be determined accordingly.

(2)

(3) Where the Commissioner cancels an agreement relating to any State land under subsection (1), any person specially or generally authorized in that behalf by the Commissioner may take possession of such land.

(4) Where a person authorized by the Commissioner under subsection (3) to take possession of any land for and on behalf of the Commissioner is unable or apprehends that he will be unable to take possession of such land because of any obstruction or resistance that has been or is likely to be offered, he may make an application in that behalf to the Magistrate’s Court having jurisdiction over the place where the land is situated. Upon such application, the Magistrate shall issue an order of the court directing the Fiscal to deliver possession of that land to such person for and on behalf of the Commissioner.

(5) Where an order under subsection (4) is issued to the Fiscal by a Magistrate’s Court, he shall forthwith execute that order and shall in writing report to that court the manner in which the order was executed.

(6) Where an order under subsection (4) is issued to the Fiscal by a Magistrate’s Court, the execution of such order shall not be stayed in any manner by reason of any steps taken or proposed to be commenced in any court with a view to questioning, varying or setting aside such order.

(7) For the purposes of executing an order issued by a Magistrate’s Court under subsection (4), the Fiscal or any person acting under his direction may use such force as may be necessary to enter the land to which that order relates and to eject any person in occupation thereof and to deliver possession of the land to the person authorized to take possession thereof for and on behalf of the Commissioner.

(1) All expenses incurred in the disposition of any State land under this Act shall be a charge on the National Housing Fund.

(2) All sums realized by the disposition of any State land under this Act shall be credited to the National Housing Fund. Any sums so credited shall, if the Minister so directs, be paid out of the fund into the Consolidated Fund.

(1) Any provision of this Part shall apply to a loan granted by a building society if by an Order made under section 26 the Minister declares that such provision shall apply to such loan.

(2) Any provision of this Part shall apply to a loan granted by the Commissioner if by an Order made under section 48 the Minister declares that such provision shall apply to such loan.

(3) In this Part the expression ” appropriate authority “”

(4) The provisions of this Part shall apply to a land mortgaged to the State as security for a loan granted by the Commissioner under this Act in the same manner and to the same extent as they apply to a land mortgaged to the Commissioner as the appropriate authority, and accordingly the expression ” appropriate authority ” in this Part shall, in relation to a land so mortgaged to the State, be construed as the Commissioner.

(1) At any time after the grant of a loan is approved by the appropriate authority and before the entire amount of the loan is given to the applicant therefor, that authority may, at the discretion of that authority and without assigning any reason, cancel the grant of the loan or reduce the amount of the loan or modify the conditions applicable to the loan or withhold payment of the whole or any part of the loan for such period as that authority may determine.

(2) Where the appropriate authority cancels under subsection (1) the grant of a loan after a part of the loan has been given to applicant therefor, such part shall be deemed to be the full amount of the loan granted to him and such authority may, by written order, direct such applicant to repay that loan and the interest due thereon within the time specified in such order. Where such order is not complied with within the time allowed therefor, default shall be deemed to be made in respect of the whole of the unpaid portion of the loan and the interest due thereon and where that loan was granted on the mortgage of any land, the provisions of sections 73 to 89 shall apply to and in relation to that loan,

(1) The appropriate authority may at any time, in the discretion of that authority and without assigning any reason therefor, by written order direct that, within the time specified in that behalf in the order” (a) additional security for a loan granted by that authority be provided to the satisfaction of that authority, and (b) a loan granted by that authority be repaid either in full or in part.

(2) Where an order issued under subsection (1) in respect of a loan is not complied with within the time allowed therefor by the order, default shall be deemed to be made in respect of the whole of the unpaid portion of that loan and the interest due thereon up to date, and, where that loan was granted on the mortgage of any land, the provisions of sections 73 to 89 shall apply to and in relation to that loan.

(1) The appropriate authority may, in lieu of the whole or any part of any security which that authority has already accepted for any loan, accept new security if the new security, either alone or together with any portion of the original security which is to remain, is sufficient for a new loan of an amount equal to the total of the principal and interest still outstanding on account of the original loan.

(2) Where a person to whom a loan has been granted by the appropriate authority on the security of a land mortgaged to that authority repays a part of that loan and that authority is satisfied that a portion (hereafter in this subsection referred to as an ” adequate portion”) of that security is sufficient for the purpose of ensuring the recovery of the balance due on that loan by way of principal and interest, that authority may release and discharge from the mortgage such portion of that security as is in excess of the adequate portion.

(3) Where any person to whom a loan has been granted by the appropriate authority on the security of a land mortgaged to that authority has transferred or transfers a portion of that land to any other person, that authority may, upon a request made therefor by the transferee, release and discharge from the mortgage that portion of that land if”

(a) by installments specified by the appropriate authority and paid at intervals so specified, or

(b) in any other manner so specified.

(a) to whom a loan is granted by the appropriate authority, or

(b) who obtains probate of the will or letters of administration to the estate of a person to whom a loan has been granted by the appropriate authority, or

(c) who, under section 77, is appointed to represent the estate of a deceased borrower, or

(d) to whom any right, title or interest in any land mortgaged to the appropriate authority as security for a loan granted by that authority, or in any other description of security for such a loan, passes whether by voluntary conveyance or by operation of law, shall notify in writing to the appropriate authority an address to which all notices to him may be sent.

(1) Every mortgage of land executed in favour of the appropriate authority as security for any loan shall be substantially in such one of the prescribed forms as may be appropriate in that behalf.

(2) Any such mortgage as is referred to in subsection (1) may include a covenant that a higher rate of interest than that on which the loan was granted shall be paid if the borrower fails or neglects to make any payment due on account of interest, principal or otherwise under the mortgage, m full and on the due date, or in such other circumstances as may be prescribed.

(1) Any person authorized by order of the appropriate authority under section 74 in respect of any land shall be entitled generally to take action in terms of the order and in particular”

(2) Any person authorized by order of the appropriate authority under section 74 in respect of any land shall”

(3) The appropriate authority shall, when all sums due to that authority under the mortgage have been fully paid, surrender possession of the mortgaged land to the mortgagor and return to him any balance remaining of the income from such land.

(1) Save as otherwise provided in subsection (2), the provisions of sections 74 and 76 shall apply in the case of any default notwithstanding that the borrower may have died or that any right, title or interest in the land mortgaged by the borrower as security for the loan may have passed by voluntary conveyance or by operation of law to any other person.

(2) Where the borrower is dead and probate of his will or letters of administration to his estate have not been issued”

(a) served on the borrower, if he is alive, and on every person on whom notice of the order authorizing the sale is required to be served under section 78;

(b) posted on or near the land which is to be sold; and

(c) affixed to the walls of the kachcheri and the several District Courts and Magistrates’ Courts within the jurisdiction of which the land is situate.

(1) If the amount of the whole of the unpaid portion of the loan (together with all interest due thereon according to the terms of the mortgage), and of the moneys and costs, if any, recoverable by the appropriate authority under section 83 is tendered to that authority at any time before the date fixed for the sale of the land mortgaged to that authority as security for the loan, that land shall not be sold and no further steps shall be taken in pursuance of the order under section 76 for the sale of that land.

(2) If the amount of the installment or other payment in respect of which default has been made, together with any interest due thereon according to the terms of the mortgage, and of the moneys and costs, if any, recoverable by the appropriate authority under section 83 is tendered to that authority at any time before the date fixed for the sale of the land mortgaged to that authority as security for the loan, that authority may, in the discretion of that authority, direct that such land shall not be sold and that no further steps shall be taken in pursuance of the order under section 76 for the safe of such land.

(1) In addition to the amount due on any loan, the appropriate authority may recover from the borrower or any person acting on his behalf”

(2) Where the Commissioner as the appropriate authority purchases the mortgaged land, he shall pay out of the National Housing Fund the moneys and costs referred to in paragraphs (a) and (b) of subsection (1) and he shall, after such moneys and costs are recovered from the borrower under that subsection, credit to that Fund the amount so recovered.

(1) Where the mortgaged land is sold, the appropriate authority shall sign a certificate of sale and thereupon all the right, title and interest of the borrower to and in the land shall vest in the purchaser.

(2) A certificate signed by the appropriate authority under subsection (1) shall be conclusive proof, with respect to the sale of any land, that all the provisions of this Part relating to the sale of the land have been complied with.

(3) Regulations may be made under this Act prescribing the form of the certificate of sale.

(4) Every certificate of sale issued under this section shall be liable to stamp duty and charges as if it were a conveyance of immovable property and to any registration and other charges authorized by law, all of which shall be payable by the purchaser:

Provided, however, that where the Commissioner as the appropriate authority is the purchaser, the certificate of sale issued to him shall not be liable to stamp duty or to the registration charge referred to in the preceding provisions of this subsection.

(a) of invalidating the sale for any cause whatsoever; or

(b) of maintaining any right, title or interest to or in the land as against the purchaser.

(1) The purchaser of any land sold in pursuance of the preceding provisions of this Part shall, upon application made to the District Court of Colombo or the District Court having Jurisdiction over the place where that land is situate and upon production of the certificate of sale issued in respect of that land under section 85, be entitled to obtain an order for delivery of possession of that land,

(2) Every application under subsection (1) 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 by any person other than the Commissioner for the purpose of each such application and on all proceedings held in consequence of any application made under that subsection by any person other than the Commissioner, stamp duties and other charges shall be payable at the respective rates at which such duties and charges are payable under any written law for the time being in force on applications for, and proceedings connected with or incidental to, the execution of a decree of a District Court for the delivery of possession of any immovable property of the same value as the land to which such application relates.

(3) Where any land sold in pursuance of the preceding provisions of this Part is in the occupancy of the debtor or of some person on his behalf or of some -person claiming under a title created by the debtor subsequently to the mortgage of the land to the appropriate authority, the District Court shall order delivery of possession of that land to be made to the purchaser by putting the purchaser, or any person whom he may appoint to receive possession on his behalf, in possession of that land.

(4) Where any land sold in pursuance of the preceding provisions of this Part is in the occupancy of a tenant or other person entitled to occupy it, the District Court shall order delivery of possession of that land to be made to the purchaser by affixing a notice of the sale having taken place, in the Sinhala, Tamil and English languages, in some conspicuous place on that land, and proclaiming to the occupant by beat of tom, or in such other mode as may be customary, at some convenient place, that the interest of the debtor has been transferred to the purchaser. The cost of such proclamation shall be fixed by the court and shall in every case be prepaid by the purchaser.

(5) Every order under subsection (3) or subsection (4) shall be deemed, as the case may be, to be an order for delivery of possession made under section 287 or section 288 of the Civil Procedure Code, and may be enforced in like manner as an order so made, the debtor and the purchaser being deemed, for the purpose of the application of any provision of that Code, to be the judgment-debtor and judgment- creditor respectively.

(1) Where the land sold is purchased by the appropriate authority and the sale is not cancelled under section 87, that authority may at any time resell the land and transfer to the purchaser by endorsement on such copy of the certificate of sale as is certified by that authority to be a true copy, all the right, title and interest to or in that land acquired by that authority.

(2) The provisions of subsection (4) of section 85 shall apply to an endorsement made under subsection (1) of this section in like manner as they apply to a certificate of sale.

(3) An endorsement made under subsection (1) shall, when it is registered in the office of the Registrar of Lands, vest in the purchaser specified in that endorsement such right, title and interest as are so specified.

(1) The income accruing to any person from any new house shall be exempt from income tax under the Income Tax Ordinance in respect of the year assessment commencing on the 1st day of April, 1955, and each of the seven years of assessment immediately succeeding.

(2) In this section”

(3) The decision of the Commissioner on any application for a certificate under subsection (2) in respect of a house shall be final and conclusive.

(1) This section shall apply to any house”

(2) Subject to the provisions of subsection (3), the income accruing from any house to which this section applies to the owner of such house shall, in respect of the year of assessment which commences on the first day of April immediately following the date of completion of the construction of that house and the six subsequent years of assessment, be exempt from Income tax.

(3) Where under section 90 the income accruing to any person from any new house had not been exempt from income tax for seven successive years of assessment, then, if such house is a house to which this section applies, the income accruing from such house to its owner shall, notwithstanding anything to the contrary in subsection (2), be exempt from income tax for such number of years of assessment as is equal to the difference between seven years of assessment and the number of years of assessment for which the income accruing to such owner had been exempt from income tax under section 90.

(4)

(5) In this section”

” income “, when used in relation to any house, means”

” income tax” means the income tax chargeable under any written law for the time being in force ;

” owner”, when used in relation to any house in respect of which there is more than one owner, includes any co-owner.

(1) Where the certificate issued under section 90A in respect of a house to which that section applies specifies”

(2)

(1) Where”

(2)

(1) Notwithstanding anything to the contrary in any other written law, where a change of ownership occurs for the first time of any house and the land on which such house is situated, such house being a house which is used solely for residential purposes and the construction of which is certified by the Commissioner was completed on or after the first day of October, 1966, and where any capital gain arises to the person who was the owner of such house and land from such change of ownership, then”

(2) In this section ” capital gain ” has the same meaning as in the Inland Revenue Act, No. 4 of 1963, or the Inland Revenue Act (No. 28 of 1979).

(a) the first day of October, 1966, or a later date as the date on which the construction of that house is completed, and

(b) five hundred square feet or less as the extent of the floor area of that house, then such house shall, for the purposes of computing the wealth tax payable under that Act by the owner of that house, be excluded from his wealth for the year of assessment which commences on the first day of April immediately following the date of completion of that house and for the six subsequent years of assessment.

(1) Notwithstanding anything in any other law, a building provided by the Commissioner or by a building society for occupation by any person or any part of such building shall not be sublet by such person to any other person except with the prior written permission of the Commissioner and except in accordance with such conditions as the Commissioner may impose.

(2) Where a building referred to in subsection (1) or any part of such building is sublet in contravention of that subsection by the person to whom such building was provided, the authority by whom such building was provided to that person shall be entitled to terminate his occupation thereof.

(1) Every person who, by himself or by his agent, does any act which causes damage to any building maintained by the appropriate authority or to any part of the equipment of such building shall be liable to pay to that authority such expenses as that authority may incur in repairing such damage.

(2) If any person who is liable to pay any sum of money under subsection (I) fails to pay that sum of money within such period as may be notified in that behalf to that person in writing by the appropriate authority, that authority may report the default to the Magistrate of the division in which that person resides and such sum of money shall be recovered in the same manner as if it were a fine imposed by such Magistrate.

(3). In this section, the expression ” appropriate authority “”

(1) The Commissioner or any officer authorized by him in writing in that behalf may, at any time between sunrise and sunset, enter and inspect any building let by the Commissioner or any property which is security for a loan granted from the National Housing Fund, for the purpose of ascertaining the state of such building or property, as the case may be, and it shall be the duty of the occupier of such building or property to give admittance to the Commissioner or such authorized officer and to permit him to inspect such building or property.

(2) Where the Commissioner or any officer referred to in subsection (1) is obstructed in the exercise of his powers under that subsection, the person obstructing him shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding five hundred rupees or to imprisonment of either description for a period not exceeding three months or to both such fine and imprisonment.

(1) The Commissioner may, by written direction, require any person”

(2) Every person who furnishes any written information required by the Commissioner under subsection (2) shall verify such information by a declaration that the particulars contained in such information are true and accurate.

(3) Every person who, being a person to whom a direction under subsection (1) has been given,”

(4) No prosecution for an offence under this section shall be instituted except by, or with the written sanction of, the Commissioner.

(5) The Commissioner may accept from any person who is reasonably suspected of having committed any offence under this section a sum of money not exceeding five hundred rupees by way of compensation for the offence which may have been committed and, on the payment of such sum, no further proceedings shall be taken against such person. Any sum received under this section by the Commissioner shall be paid into the National Housing Fund.

(1) Upon the production of a certificate issued by the Commissioner . under this Act to the effect that a specified sum of money was due to the State or to him on a specified date from a specified person, before a District Court having jurisdiction in the district in which that person resides or in which any property movable or immovable owned by that person is situate, the court shall issue an injunction restraining that person from removing any movable property owned by that person from the place where such property is kept or from causing or permitting the removal therefrom of such property and shall direct a writ of execution to issue to the Fiscal authorizing and requiring him to seize and sell all and any of the property movable and immovable of that person or such part thereof as may be necessary for the recovery of that sum; and the provisions of sections 226 to 297 of the Civil Procedure Code shall, mutatis mutandis, apply to such seizure and sale.

(2) Where the Commissioner issues a certificate referred to in subsection (1), he shall at the same time issue to the person specified in the certificate a notification thereof by personal service, registered post, or telegraph, but the non receipt of such notification by that person shall not invalidate proceedings under this section.

(3) Nothing in the preceding provisions of this section shall affect or be deemed or construed to affect the right of the State or the Commissioner to recover moneys due to the State or the Commissioner, as the case may be, under this Act in any other manner or by any other procedure applicable in that behalf.

(1) Any person who is liable to pay any sum under this Act to the Commissioner may, by written notice, inform the Commissioner that he desires that such sum shall be recovered out of his remuneration from employment.

(2) Where the Commissioner receives a notice from any person under subsection (1), he shall, if he is of the opinion that the method of recovery referred to in that subsection is a satisfactory method of recovery, direct in writing the employer of that person to deduct and pay to the Commissioner out of the remuneration payable by that employer to that person such amount, in such manner, and at such intervals, as may be specified in the direction.

(3) Every employer who receives a direction under subsection (2) shall forthwith comply with that direction.

(4) Where any person in respect of whom a direction under subsection (2) is in force is about to leave, or leaves, the employment of his employer, the employer shall forthwith”

(5) Where for any reason an employer of any person is unable to comply with a direction given under subsection (2), he shall inform the Commissioner forthwith in writing of his inability to do so and the reason therefor.

(6) Every employer who deducts an amount from the remuneration of any person by virtue of the preceding provisions of this section shall, on written request made by such person, issue to him a certificate to the effect that such deduction has been made.

(7) Every employer who contravenes any of the preceding provisions of this section shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one thousand rupees or to imprisonment of either description for a period not exceeding one year or to both such fine and such imprisonment.

(8) Where any offence under the preceding provisions of this section is committed by a body of persons, then”

(9) No prosecution for an offence under this section shall be instituted except by or with the written sanction of the Commissioner.

(10) Nothing in the preceding provisions of this section shall affect, or be deemed or construed to affect, the right of the Commissioner to recover in any other manner or by any other procedure applicable in that behalf, any sum which is liable to be paid to him under this Act and in respect of which he has given a direction under subsection (2).

(1) Every officer or servant of the Department of National Housing shall, before, on, or after entering upon his duties under this Act, sign a declaration pledging himself to observe strict secrecy respecting all transactions of the Commissioner and all matters relating to such transactions, and shall by such declaration pledge himself not to reveal any matter which may come to his knowledge in the discharge of his duties except”

(2) Every officer or servant of the Department of National Housing shall decline to answer any question concerning the business of that department if he cannot answer the question without infringing his pledge of secrecy under subsection (1).

(3) Every officer or servant who fails to sign the declaration, or to observe the pledge, referred to in subsection (1) shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding five hundred rupees or to imprisonment of either description for a period not exceeding six months or to both such fine and such imprisonment.

(1) If any building society contravenes or fails to comply with any provision of this Act or of any regulations made thereunder or of its instrument of association, or if any officer of the proper authority contravenes or fails to comply with the provisions of section 91, that society or that officer, as the case may be, shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one hundred rupees, and, in the case of a continuing offence, to an additional fine not exceeding fifty rupees for every day during which the offence is continued after a conviction thereof.

(2) Any person who willfully does or causes to be done any damage to any building maintained by the appropriate authority or to any part of the equipment of such building or to any property which is security for a loan granted from the National Housing Fund shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one thousand rupees or to imprisonment of either description for a period not exceeding six months or to both such fine and imprisonment. For the purposes of this subsection, the expression ” appropriate authority “,”

(3) All sums paid or recovered as fines under this Act shall be credited to the National Housing Fund.

(I) The Minister may make regulations for the purpose of carrying out or giving effect to the principles and provisions of this Act.

(2) In particular and without prejudice to the generality of the powers conferred by subsection (1), the Minister may make regulations for or in respect of all matters for which regulations are authorized or required by this Act to be made, all matters in this Act stated or required to be prescribed and all matters for which no provision or no effective provision is made by this Act.

(3) No regulation made by the Minister under this Act shall have effect until it is approved by Parliament and notice of such approval is published in the Gazette.

(1) No loan shall be granted under this Act and no disposition of any State land shall be made under this Act, to individuals who, or to companies or firms or other associations of persons in which the majority of members, are not citizens of Sri Lanka except with the prior approval of the Cabinet: Provided, however, that any such loan may be granted or any such disposition may be made, to any such individuals, companies, firms or other associations of persons without the prior approval of the Cabinet for the purpose only of the erection of houses which are to be occupied exclusively by citizens of Sri Lanka.

(2) For the purposes of this section, the expression ” members ” includes partners: Provided, however, that any such loan may be granted or any such disposition made to any such individual or body corporate for the purpose of the erection of houses for exclusive occupation by citizens of Sri Lanka.

(1)

In this Act unless the context otherwise requires”

” appointed date ” means the 6th day of August, 1954;

” body of persons ” means any body of persons corporate or unincorporate;

” building ” includes a house ;

” building company ” means a company which is declared to be a building company by Order under this Act;

” building society” means a building society incorporated and registered under this Act;

“carry out”, in relation to a housing object, with its grammatical variations, includes the promotion of that object and the exercise of all such housing and other powers as may be necessary for carrying out that object;

” Commissioner” means the Commissioner for National Housing, and includes a Deputy Commissioner or an Assistant Commissioner;

” company ” means a company incorporated and registered under the Companies Ordinance*;

” construct”, in relation to any building, includes the conversion of a building into two or more flats ;

“disposition”, with its grammatical variations, means any transaction of whatever nature affecting land or the title thereto, and includes any conveyance, transfer, sale, lease, grant, surrender or exchange of land;

” flat” means a separate and self-contained set of premises constructed for use for residential purposes and forming part of a building from some other part of which it is divided horizontally;

” grantee ” means the person to whom any State land or right or interest in such land is disposed of by an instrument of disposition under this Act, and includes any person claiming such land or right or interest under, through or from that person;

“housing body” means any body of persons which has been declared to be a housing body by Order of the Minister under this Act;

” house ” includes a flat;

” housing object” means any object declared to be a housing object by section 2 of this Act;

” housing power” means any power declared to be a housing power by section 3 of this Act;

” instrument of disposition ” means any instrument or document whereby any disposition of State land is effected and includes a grant or lease relating to State land ;

” land ” includes any building, flat or any other erection on land, anything attached to the earth or permanently fastened to any other thing attached to the earth and any right or interest in or over land ;

” person ” includes any body of persons;

” proper authority” includes any Municipal Council, Urban Council, Town Council or Village Council, or any Board of Improvement Commissioners appointed under the Housing and Town Improvement Ordinance; and

” residential purposes “, in relation to any house, means the purposes of being occupied wholly or mainly as a residence.

(2) An instrument of disposition shall be deemed to be an instrument affecting land within the meaning of the Registration of Documents Ordinance.