CEYLON PETROLEUM CORPORATION ACT

Arrangement of Sections

1. Short title.

PART I

Constitution and Powers and Duties of the Ceylon Petroleum Corporation
and its Board of Directors

2. Establishment of Ceylon Petroleum Corporation.

3. Seal of the Corporation.

4. Members of the Corporation.

5. General objects of the Corporation.

5A. Meaning of the expression "appointed date”.

5B. Exclusive right to import, export, sell, supply or distribute petroleum of certain classes or descriptions vested in the Corporation.

5C. Power of Minister by Order to vest the exclusive right in the Corporation to import, export, sell, supply or distribute petroleum of certain classes or descriptions.

5D. Repealed.

5E. Power of Board of Directors to authorise persons to sell petroleum of certain classes or descriptions.

5F. Repealed.

5G. Repealed.

5H. Special provisions applicable to the power of granting written authorities conferred on the Minister, authorised officers and the Board of Directors.

5I. Meaning of the expression "authorised officer”.

5J. Special provisions relating to employees of persons who were carrying on business as importer and seller of petroleum.

5K. —

6. Powers of the Corporation.

7. Powers of the Minister in relation to the Corporation.

8. Board of Directors.

9. Remuneration of Directors.

10. Director to disclose interest in contract proposed to be made by the Corporation.

11. Quorum for any meeting of Board of Directors.

12. Chairman of any meeting of the Board of Directors to have a casting vote.

13. Regulation of Procedure.

14. The Board of Directors may act despite vacancy.

15. General control of the corporation.

16. Delegation of powers and duties of Board.

17. Chairman of the Board of Directors and Managing Director.

18. Repealed.

19. Appointment of public officers and officers and servants of the Local Government Service and of any local authority to the staff of the Corporation.

20. Officers and servants of the Corporation deemed to be public servants.

21. The Corporation deemed to be a scheduled institution within the meaning of the Bribery Act.

22. Application and custody of the seal of the Corporation.

PART II

Finance

23. Capital of the Corporation.

24. Borrowing powers of the Board of Directors.

25. Investments of the funds of the Corporation.

26. Petroleum Corporation stock.

27. Government guarantee.

28. Application of the Revenue of the Corporation.

29. Reserves.

30. Accounts.

31. Audit of accounts.

32. Auditor's report and transmission of report and balance sheet to the Minister.

33. Exemption from taxes.

PART III

Acquisition, Requisition, and Use of Property for or by the Corporation

34. Notice of claim or disclaimer in respect of property required for the purposes of the Corporation.

34A. Repealed.

35. Compulsory transfer to the Corporation of certain property.

36. Requisition of notified property and compulsory acquisition of requisitioned property.

37. Revocation of vesting Order.

37A. Copies of Gazettes containing vesting Orders and divesting Orders to be transmitted to the Registrar of Lands who shall duly register them.

38. Taking possession of property vested in or requisitioned for the Corporation.

38A. Provisions of sections 38 and 39 to apply mutatis mutandis to take possession of property belonging to the Corporation on termination of agreement of hire or lease.

39. Prevention of or obstruction to take possession of property for or on behalf of the Corporation.

40. Acquisition of immovable property under the Land Acquisition Act for the Corporation.

41. Special grant or lease of State property to the Corporation.

42. Power to require information and to inspect.

43. Power of Corporation to make use of equipment and facilities of other persons.

PART IV

Compensation

44. Notice to persons entitled to make claims to the compensation payable under this Act in respect of any property vested in or requisitioned for the Corporation.

45. Provisions to be complied with by the Chairman on the receipt of claims to compensation.

46. Reference to the Compensation Tribunal for an award as to compensation in respect of any property vested in or requisitioned for the Corporation.

47. Compensation in respect of properties vested in the Corporation.

48. Compensation in respect of property requisitioned for the Corporation.

48A. In determining compensation, certain buildings not to be taken into account and certain deductions to be made.

49. Proportionate payment of compensation, and interest on compensation, until date of payment.

50. When compensation in respect of vested properly accrues due.

51. Right to compensation.

52. Deductions from compensation.

53. Mode of payment of compensation.

54. Provision for cases where compensation is not accepted.

54A. Compensation payable in respect of property vested in or requisitioned for the Corporation on or after August 1, 1970.

54B. Power of the Chairman of the Board of Directors to pay advances on account of compensation.

54C. Finality as to payment of compensation.

PART V

Compensation Tribunal

55. Constitution of the Compensation Tribunal.

56. Remuneration of members of the Tribunal and expenses of the Tribunal.

57. Meetings of the Tribunal.

58. Proceedings before Tribunal.

59. Power to summon witnesses.

60. Persons giving evidence bound to state the truth.

61. Determination of the Tribunal.

62. Tribunal may regulate its procedure at meetings.

63. Chairman of the Board of Directors and claimants to compensation to be given an opportunity of being heard before the making of an award.

64. Provision in regard to evidence.

65. An award as to compensation by the Tribunal on a reference.

PART VI

General

66. Order fixing prices and prescribing conditions of sale of petroleum.

67. Repealed.

68. Regulations.

69. Offences and penalties.

70. Power of Board of Directors to compound claims.

70A. Corporation exempted from the provisions of the Prescription Ordinance.

71. Liability of directors and certain officers of a body corporate for offence committed by that body.

72. Provisions in regard to mortgage and leases.

73. Power of companies to enter into contracts with the Corporation.

74. Protection for action taken under this Act or on the direction of the Board of Directors.

75. No writ to issue against person or properly of a member of the Corporation.

76. This Act to prevail over other written laws.

77. Rectification of failures and omissions.

78. Interpretation.

50 of 1973,

2 of 1976,

28 of 1961,

5 of 1963,

18 of 1965,

26 of 2003.

AN ACT to provide for the establishment of a corporation to carry on business as an importer, exporter, seller, supplier or distributor of petroleum. As well as the business of exploring for, or exploiting or producing or refining petroleum, to enable the compulsory acquisition or requisition for such corporation of any immovable or movable property required for the purposes of such corporation and to provide for the establishment of a compensation tribunal; to provide for the regulation and control of the price of petroleum; and to make provision for purposes connected with the matters aforesaid.

[Date of Commencement: 29th May, 1961]

1. Short title.

This Act may be cited as the Ceylon Petroleum Corporation Act.

PART I

Constitution and Powers and Duties of the Ceylon Petroleum Corporation and its Board of Directors

2. Establishment of Ceylon Petroleum Corporation.

There shall be established a Corporation which shall be called the "Ceylon Petroleum Corporation” (hereinafter referred to as "the Corporation”) and which shall consist of the persons who are for the time being members of the Corporation under section 4.

3. Seal of the Corporation.

The Corporation shall, by the name assigned to it by section 2, be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in such name.

4. Members of the Corporation.

The members of the Board of the Directors shall be the members of the Corporation.

5. General objects of the Corporation.

The general objects of the Corporation shall be—

(a) to carry on business as an importer, exporter, seller, supplier or distributor of petroleum;

(b) to carry on the business of exploring for, and exploiting, producing, and refining of, petroleum; and

[S 5(b) am by s 3 of Act 5 of 1963.]

(c) to carry on any such other business as may be incidental or conducive to the attainment of the objects referred to in paragraphs (a) and (b).

[S 5(c) am by s 3 of Act 5 of 1963.]

5A. Meaning of the expression "appointed date”.

(1) For the purposes of sections 5B, 5D and 5F, the expression "appointed date” means such date as may be appointed by the Minister, with the approval of the Government, by Order published in the Gazette (being a date prior to January 1, 1964) or the following date, namely, January 1, 1964, whichever of such dates is the earlier date.

(2) An Order made under subsection (1) shall, upon its publication in the Gazette, be deemed to be as valid and effectual as if it were herein enacted.

[S 5A ins by s 4 of Act 5 of 1963.]

5B. Exclusive right to import, export, sell, supply or distribute petroleum of certain classes or descriptions vested in the Corporation.

(1) On and after the appointed date, the right to import, export, sell, supply or distribute—

(a) petrol;

(b) kerosene;

(c) diesel oil, and

(d) furnace oil,

shall, save as otherwise expressly provided by or under this Act, vest exclusively in the Corporation.

(2) On and after the appointed date, no person, other than the Corporation, shall, save as otherwise expressly provided by or under this Act, import, export, sell, supply or distribute—

(a) petrol; or

(b) kerosene; or

(c) diesel oil; or

(d) furnace oil.

(3) The sale, supply or distribution by any person of any petrol, kerosene, diesel oil or furnace oil shall be deemed not to be—

(a) an interference with, or a violation of, the exclusive right vested in the Corporation by subsection (1); or

(b) a contravention of the provisions of subsection (2),

if, but only if, it is done under the written authority of the Minister or any authorised officer under subsection (4), or of the Board of Directors under section 5E, and in accordance with the terms and conditions subject to which such authority is granted.

(4) The Minister or any authorised officer may grant a written authority to any person to import, export, sell, supply or distribute petroleum of any class or description specified in subsection (1) for the sole purpose only of enabling such person to provide petroleum of that class or description as fuel for marine ships or aircraft.

[S 5B ins by s 4 of Act 5 of 1963.]

5C. Power of Minister by Order to vest the exclusive right in the Corporation to import, export, sell, supply or distribute petroleum of certain classes or descriptions.

(1) The Minister may, from time to time, by Order declare that the right to import, export, sell, supply or distribute petroleum of any such class or description as shall be specified in the Order, not being petroleum of any class or description specified in subsection (1) of section 5B shall, save as otherwise expressly provided by or under this Act, vest exclusively in the Corporation. Any such Order may be amended, varied or revoked by the Minister by a like Order.

(2) The provisions of subsections (3) to (5), both inclusive, of section 66 shall mutatis mutandis apply to every Order made under subsection (1) of this section in like manner and to the same extent as such provisions apply to an Order made under the said section 66.

(3) So long as an Order made by the Minister under subsection (1) is in force in respect of petroleum of any class or description, no person other than the Corporation shall, save as otherwise expressly provided by or under this Act, import, export, sell, supply or distribute petroleum of that class or description.

(4) The sale, supply or distribution by any person of petroleum of any class or description in respect of which there is for the time being in force an Order made by the Minister under subsection (1) shall be deemed not to be—

(a) an interference with, or a violation of, the exclusive right vested in the Corporation by that Order; or

(b) a contravention of the provisions of subsection (3),

if, but only if, it is done with the written authority of the Board of Directors under section 5E, and in accordance with the terms and conditions subject to which such authority is granted—

[S 5C ins by s 4 of Act 5 of 1963.]

5D. .

[S 5D ins by s 4 of Act 5 of 1963; rep by s 31 of Act 26 of 2003.]

5E. Power of, Board of Directors to authorise persons to sell petroleum of certain classes or descriptions.

Notwithstanding that the exclusive right to sell, supply or distribute petroleum of any class or description is vested in the Corporation by any provision of this Act or any Order made thereunder, the Board of Directors may, from time to time, as respects petroleum of that class or description only grant written authority to any person to sell, supply or distribute petroleum of that class or description subject to such terms and conditions as may be determined by such Board.

[S 5E ins by s 4 of Act 5 of 1963.]

5F. .

[S 5F ins by s 4 of Act 5 of 1963; rep by s 31 of Act 26 of 2003.]

5G. .

[S 5G ins by s 4 of Act 5 of 1963; rep by s 31 of Act 26 of 2003.]

5H. Special provisions applicable to the power of granting written authorities conferred on the Minister, authorised officers and the Board of Directors.

The following provisions shall be applicable in the case of the exercise of the power to grant a written authority conferred on the Minister, any authorised officer or the Board of Directors by any of the sections 5B, 5E, 5F and 5G:

(1) Such authority may be granted either of his or its own motion or on application in that behalf made by any person.

(2) The Minister, such officer or such Board may, in his or its absolute discretion, decide whether to grant or refuse to grant such authority.

(3) The Minister, such officer or such Board may, in his or its absolute discretion, decide the terms and conditions subject to which such authority should be granted.

(4) The Minister, such officer or such Board may, in his or its absolute discretion, decide at any time to cancel such authority.

(5) The terms or conditions of such authority may be amended, varied or cancelled either of his or its own motion or on application in that behalf made by the person to whom such authority is granted.

(6) The Minister, such officer or such Board may, in his or its absolute discretion, decide whether or not to amend, vary or cancel any term or condition of such authority.

(7) Any decision made by the Minister, such officer or such Board under the preceding provisions of this section shall be final and conclusive, and shall not be called in question in any court whether by way of writ or otherwise.

[S 5H ins by s 4 of Act 5 of 1963.]

5I. Meaning of the expression "authorised officer”.

The expression "authorised officer” wherever it occurs in any of the sections 5B to 5H (both inclusive) means any public officer or an officer of the Corporation authorised in that behalf by the Minister.

[S 5I ins by s 4 of Act 5 of 1963.]

5J. Special provisions relating to employees of persons who were carrying on business as importer and seller of petroleum.

(1) No person other than the Corporation who on the 5th day of June, 1963, was carrying on business as an importer and seller, supplier or distributor of petroleum of any class or description specified in subsection (1) of section 5B shall terminate the employment of any person (hereafter in this section referred to as an "employee”) employed by him except with the written approval of the Commissioner, or otherwise than in accordance with the terms or conditions subject to which such approval is granted.

A person who was carrying on the business referred to in the preceding provisions of this subsection is hereafter in this section referred to as an "employer”.

(2) The following provisions shall apply in the case of the exercise of the powers conferred on the Commissioner to grant his approval to an employer terminating the employment of any employees:

(a) Such approval may be granted or refused on application in that behalf made by such employer.

(b) The Commissioner may, in his absolute discretion, decide to grant or refuse such approval.

(c) The Commissioner may, in his absolute discretion, decide the terms and conditions subject to which his approval should be granted, including in particular terms and conditions relating to the payment by such employer to such employee of a gratuity or compensation for the termination of employment.

(d) Any decision made by the Commissioner under the preceding provisions of this subsection shall be final and conclusive, and shall not be called in question in any court, whether by way of writ or otherwise.

(3) Where, on or after June 5, 1963, any employer has granted or grants to any employee, in addition to any benefit such employee was or would be entitled to receive in the ordinary course of his employment, any ex gratia gratuity or compensation or other benefit (hereafter in this subsection referred to as "ex gratia benefits”), then, every person who was an employee of that employer on June 5, 1963, shall be entitled, with the approval of the Commissioner given upon application in that behalf made by such person, to receive the same ex gratia benefits so however that the amount thereof shall be as determined by the Commissioner. The preceding provisions of this subsection shall apply to any person notwithstanding that he ceased or ceases to be an employee of that employer after June 5, 1963, for any reason whatsoever other than misconduct. Any approval or determination of the Commissioner under the preceding provisions of this subsection shall be final and conclusive, and shall not be called in question in any court, whether by way of writ or otherwise.

(4) Where an ex gratia gratuity or compensation or other benefit is granted by any employer to an employee, such employer shall furnish to the Commissioner, within thirty days of the grant thereof, full details of the gratuity, compensation or other benefit so granted. Such details shall be furnished in such form and manner as may be determined by the Commissioner.

(5) In this section, "Commissioner” means the Commissioner of Labour, and includes a Deputy Commissioner of Labour.

[S 5J ins by s 4 of Act 5 of 1963.]

5K. .

The provisions of section 5A to 5J (both inclusive) shall have effect notwithstanding anything to the contrary in any other provisions of this Act, or in any undertaking, express or implied, given by or on behalf of the Government or the Corporation relating to the business of importing, exporting, selling, supplying or distributing petroleum.

[S 5K ins by s 4 of Act 5 of 1963.]

6. Powers of the Corporation.

The Corporation may exercise all or any of the following powers—

(a) to acquire, hold, lake or give on lease or hire, mortgage, pledge and sell or otherwise dispose of, any immovable or movable property ;

(b) to employ such officers and servants as may be necessary for carrying out the work of the Corporation;

(c) to do anything for the purpose of advancing the skill of persons employed by the Corporation or the efficiency of the equipment of the Corporation or the manner in which that equipment is operated, including the provision by the Corporation, and the assistance of the provision by others, of facilities for training persons required to carry out the work of the Corporation;

(d) to establish a provident fund, and provide welfare and recreational facilities, houses, hostels and other like accommodation for persons employed by the Corporation;

(e) to construct, manufacture, purchase, maintain and repair anything required for the purpose of the business of the Corporation;

(f) to make charges for any services rendered by the Corporation in carrying on such businesses;

(g) to purchase such quantities of petroleum as may be necessary for the purpose of the business of the Corporation;

(h) to re-export petroleum;

(i) with the approval of the Government, to promote any subsidiary organisation in Sri Lanka or abroad which may in the opinion of the Board directly or indirectly promote the interests, or be conducive to the attainment of the objects, of the Corporation;

[S 6(i) ins by s 2(2) of Law 2 of 1976.]

(j) to purchase, charter, build or otherwise acquire, mortgage, sell, exchange and let out on hire or charter or otherwise deal with or dispose of, any tanker, bunker or vessel;

[S 6(j) ins by s 2(2) of Law 2 of 1976.]

(k) to contribute such sums of money as may be determined by the. Board with the approval of the Minister given with the concurrence of the Minister in charge of the subject of Finance and the Minister in charge of the subject of Planning, to recognised institutions for the purpose of promoting technological, scientific and industrial research;

[S 6(k) ins by s 2(2) of Law 2 of 1976.]

(l) to give any guarantee, security or indemnity to, and to enter into any agreements with, any bank, Government department, local authority, or any other person in order to obtain any rights, concessions, or privileges that may seem to the Board to be conducive for the purposes of the Corporation;

[S 6(l) ins by s 2(2) of Law 2 of 1976.]

(m) to delegate to any officer of the Corporation any such function of the Corporation as the Corporation may consider necessary so to delegate for the efficient transaction of business;

[S 6(i) re-lettered as s 6(m) by s 2(1) of Law 2 of 1976.]

(n) to enter into and perform or carry out, whether directly or through any officer or agent authorised in that behalf by the Corporation, all such contracts or agreements as may be necessary for the exercise of the powers of the Corporation;

[S 6(j) re-lettered as s 6(n) by s 2(1) of Law 2 of 1976.]

(o) to make rules in relation to its officers and servants, including their appointment, promotion, remuneration, disciplinary control, conduct and the grant of leave to them;

[S 6(k) re-lettered as s 6(o) by s 2(1) of Law 2 of 1976.]

(p) to make rules in respect of the administration of the affairs of the Corporation; and

[S 6(l) re-lettered as s 6(p) by s 2(1) of Law 2 of 1976.]

(q) to do all other things which, in the opinion of the Corporation, are necessary to facilitate the proper carrying on of its business.

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