PADDY MARKETING BOARD ACT

Arrangement of Sections

1. Short title.

PART I

CONSTITUTION, OBJECTS, POWERS AND FUNCTIONS OF THE PADDY MARKETING BOARD

2. Establishment of the Paddy Marketing Board.

3. General objects of the Board.

4. Exclusive right to purchase, sell supply or transport or to carry on the business of hulling, milling or processing of paddy and rice vested in the Board.

5. The Board may fix guaranteed price for a variety of paddy or different grades of such variety.

6. Termination of licences for hulling or milling paddy issued under the Agricultural Products (Guaranteed Prices and Control of Hulling and Milling) Act.

7. Authorised purchaser to pay the guaranteed price for purchase of paddy.

8. From whom the Board or authorised purchaser may purchase paddy.

9. Recovery of moneys due to Government or to co-operative societies.

10. Control of hulling, milling or processing of paddy and rice.

11. Control of the disposal of equipment and facilities intended, to be used for the sale, supply, distribution, transport, storage, hulling, milling or processing of paddy and rice.

12. Control of the establishment and maintenance of equipment and facilities for sale, supply, transport or distribution, hulling, milling or processing of paddy and rice.

13. Powers of the Board.

14. Constitution of the Board.

15. General control of the Board.

16. Seal of the Board.

17. Powers of the Minister in relation to the Board.

18. Officers and servants of Board deemed to be public servants.

19. Board deemed to be a scheduled institution within the meaning of the Bribery Act.

20. Regional Consultative Committees.

PART II

EMPLOYMENT OF THE BOARD

21. Appointment of staff of the Board.

22. Powers of the Board in regard to the staff of the Board.

PART III

FINANCE

23. Capital of the Board.

24. The fund of the Board.

25. Borrowing powers of the Board.

26. Investment of funds of the Board.

27. Application of the Revenue of the Board.

28. Reserves.

29. Accounts and audit of accounts.

30. Powers of the Auditor-General and the auditor appointed by the Minister.

31. Report of the Board and copies of the auditor's report, the Auditor-General's comments and supplement and statement of accounts and statistics to be sent to the Minister and laid before Parliament.

32. Financial year.

PART IV

ACQUISITION, REQUISITION, AND USE OF PROPERTY FOR OR BY THE BOARD

33. Notice of claim or disclaimer in respect of property required for the purposes of the Board.

34. Compulsory transfer to the Board of certain property.

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

36. Revocation of vesting Order.

37. Taking possession of property vested in, or requisitioned for, the Board.

38. Prevention of or obstruction to taking possession of property for and on behalf of the Board.

39. Acquisition of immovable property under the Land Acquisition Act for the Board.

40. State property both immovable and movable, to be made available to the Board.

41. Power to require information and to inspect.

42. Power of Board to make use of equipment and facilities of other persons.

43. Compensation for loss incurred by reason of vesting or requisition for the Board of any mill, huller, plant, machinery.

PART V

COMPENSATION

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

45. Power of the Chairman of the Board or officer authorised by him to determine compensation payable to claimants.

46. Power to hold inquiries into claims for compensation.

47. Assessment and payment of compensation under this Act in respect of property as is immovable vested in the Board.

48. Compensation in respect of property as is immovable requisitioned for the Board.

49. Assessment of compensation payable for property as is movable.

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

51. When compensation in respect of vested property accrues due.

52. Duty of Chairman of the Board or other officer to make an award of the compensation and to give notice of such award.

53. Person dissatisfied with the amount of compensation awarded may appeal therefrom to the Board of Review constituted under the Land Acquisition Act.

54. Application of certain sections of the Land Acquisition Act in relation to appeals to the Board of Review under this Act.

55. Finality of an award made under this Act.

56. Tender and payment of compensation.

57. Power of the Chairman of the Board to pay advances on account of compensation.

58. Mode of payment of compensation.

59. Provision for cases where compensation is not accepted.

PART VI

GENERAL

60. Power of Minister to modify the effect of certain written laws.

61. Power of Minister to make Orders.

62. Regulations.

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

64. No writ to issue against person or property of a member of the Board.

65. Offences.

66. Liability of directors and certain officers of a body corporate for offences committed by that body.

67. Power of the Board to enter into contracts.

68. Power of companies, to enter into contracts with the Board.

69. This Act to prevail over other written law.

70. Interpretation.

SCHEDULE

14 of 1971.

AN ACT to provide for the establishment of a Board to carry on the business as purchaser, seller, supplier, distributor, huller, miller or processor of paddy and rice, and to provide for services in connection therewith and for the compulsory acquisition or requisition for such Board of any immovable or movable property, to provide the mode and manner of payment of compensation, and for matters connected therewith or incidental thereto.

[Date of Commencement: 16th March, 1971]

1. Short title.

This Act may be cited as the Paddy Marketing Board Act.

PART I

CONSTITUTION, OBJECTS, POWERS AND FUNCTIONS OF THE PADDY MARKETING BOARD

2. Establishment of the Paddy Marketing Board.

(1) There shall be established a Board which shall be called the Paddy Marketing Board (hereinafter referred to as "the Board” and which shall consist of the persons who are for the time being members of the Board under section 14.

(2) The Board shall by the name assigned to it by subsection (1) be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in such name.

3. General objects of the Board.

The general objects of the Board shall be—

(a) to carry on the business of purchasing, selling, supplying and distributing paddy and rice;

(b) to carry on the business of milling, hulling and processing of paddy and rice;

(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); and

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

4. Exclusive right to purchase, sell supply or transport or to carry on the business of hulling, milling or processing of paddy and rice vested in the Board.

(1) The Minister, after consultation with the Board, may, by Order published in the Gazette, declare that with effect from such date as shall be specified in that Order the right—

(a) to purchase, sell, supply, transport or distribute paddy and rice;

(b) to carry on the business of hulling, milling or processing of paddy and rice,

shall, save as otherwise expressly provided by or under this Act, vest exclusively in the Board within such area as may be specified in such Order. Any such Order may be amended, varied or revoked by the Minister by a like Order.

(2) Any Order made under subsection (1) may be made in respect of any or all the matters referred to in paragraph (a)
or paragraph (b) or in both such paragraphs and may be made applicable to the whole or any part of Sri Lanka and the term "area” in subsection (1) shall be read and construed accordingly.

(3) So long as an Order made by the Minister under subsection (1) is in force, no person, other than the Board, shall, save as otherwise expressly provided by or under this Act purchase, sell, supply, transport or distribute or carry on the business of hulling, milling or processing of paddy and rice within the area specified in that Order.

(4) No person shall be entitled to compensation for any loss incurred by him whether directly or indirectly or by loss of business or otherwise by reason of the coming into operation of an Order under subsection (1).

(5) The purchase, sale, supply, transport, distribution, hulling, milling or processing of paddy and rice by any person shall be deemed not to be—

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

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

if, but only if, it is done under the written authority of the Board under subsection (6) or in the exercise or performance of any power or function or the discharge of any duty under the Food Control Act.

(6) —

(a) —

(i) The Board may authorise any society registered or deemed to be registered under the Co-operative Societies Law or an Agrarian Services Committee constituted under the Agrarian Services Act or any officer of the Government who is not an officer of the Department of Agrarian Services or a person or body of persons (corporate or un-incorporate) to purchase paddy.

(ii) The Board may authorise the Commissioner of Agrarian Services or any officer of the Department of Agrarian Services authorised by such Commissioner to purchase paddy on behalf of the Board.

(iii) The Commissioner, an officer of the Department of Agrarian Services or the society or the Agrarian Services Committee or the Government officer other than the officer of the Department of Agrarian Services or the person or body of persons referred to in the preceding sub-paragraphs (i) and (ii) shall hereinafter be called the "authorised purchaser”.

(b) The Board may authorise any authorised purchaser to sell, supply, transport, distribute or carry on the business of hulling, milling or processing of paddy and rice.

(7) Where any authority has been granted under section 5 of the Agricultural Products (Guaranteed Prices and Control of Hulling and Milling) Act to the Commissioner or any officers of the Department of Agrarian Services or to a society registered or deemed to be registered under the Co-operative Societies Law or to any officer of Government, for the purchase of any scheduled agricultural product, then so far as and so far only as that authority relates to the purchase of paddy within any area specified in an Order under subsection (1), such authority shall be deemed to be authority granted by the Board under the provisions of this Act.

5. The Board may fix guaranteed price for a variety of paddy or different grades of such variety.

Notwithstanding the provisions of the Agricultural products (Guaranteed Prices and Control of Hulling and Milling) Act the Board may, after consultation with the Commissioner of Agrarian Services and the Guaranteed Prices Advisory Committee and with the approval of the Minister given after consultation with the Minister in charge of the subject of Finance, fix a guaranteed price in respect of any variety of paddy or any grade of any variety of paddy.

6. Termination of licences for hulling or milling paddy issued under the Agricultural Products (Guaranteed Prices and Control of Hulling and Milling) Act.

On the dates specified by the Minister by Order made and published in the Gazette under subsection (1) of section 4 in respect of hulling and milling of paddy, all licences to carry on the business of hulling or milling of paddy in force on the day immediately preceding that date shall cease to be in force notwithstanding anything to the contrary in the Agricultural Products (Guaranteed Prices and Control of Hulling and Milling) Act.

7. Authorised purchaser to pay the guaranteed price for purchase of paddy.

Where there is a guaranteed price fixed under the Agricultural Products (Guaranteed Prices and Control of Hulling and Milling) Act for paddy or for any grade of paddy, or under this Act for any variety of paddy or any grade of any variety of paddy, the Board or the authorised purchaser shall not pay for the purchase of such paddy or such grade of paddy or such variety of paddy or any grade of any such variety of paddy a price other than such guaranteed price.

8. From whom the Board or authorised purchaser may purchase paddy.

(1) The Board shall not purchase paddy from any person other than from an authorised purchaser or a producer of such paddy.

(2) An authorised purchaser under paragraph (a) of subsection (6) of section 4, shall not purchase paddy from any person other than the producer of such paddy or purchase paddy and rice from any person other than the authorised purchaser under paragraph (b) of subsection (6) of section 4.

9. Recovery of moneys due to Government or to co-operative societies.

(1) Where any paddy is sold under this Act by a producer it shall be lawful for the Board or any authorised purchaser to deduct from the amount payable to such producer for the paddy so sold, such sums as may be due from such producer—

(a) to the Government; or

(b) to any society registered or deemed to be registered under the Co-operative Societies Law,

in respect of any loan or advance of moneys obtained by such producer for any purpose connected with the cultivation of such paddy.

(2) Any sum recovered under subsection (1) shall—

(a) where such money is due to the Government, be paid to the Commissioner of Agrarian Services and such Commissioner shall credit such sum to the Consolidated fund; and

(b) where such sum is due to any society, be paid to that society.

10. Control of hulling, milling or processing of paddy and rice.

(1) Save as otherwise provided by subsection (6) of section 4, after the coming into force of an Order made under subsection (1) of that section, no person shall carry on the business of hulling, milling or processing of paddy and rice, except under the authority of a licence issued under subsection (2):

Provided, however, that it shall not be a contravention of the preceding provisions, if a person who has commenced to carry on the business of hulling or milling of paddy prior to the date of operation of an Order under section 4, and who is entitled to make an application under subsection (3) of this section, and who has applied for a licence under that subsection, continues to carry on such business until the determination of his application.

(2) The Board may issue a licence in respect of a huller or mill of a specified capacity to any person to carry on the business of hulling, milling or processing of paddy and rice, subject to such terms and conditions as may be specified in the licence.

(3) —

(a) Every application for a licence to carry on any business as is specified in subsection (1) shall be in the prescribed form. Every person carrying on the business of hulling or milling of paddy on the date of the coming into operation of this Act may apply to the Board for a licence within one month after that date.

(b) The Board may in its discretion issue or refuse to issue a licence to an applicant thereof.

(c) Where the Board refuses to issue a licence to an applicant thereof the Board shall cause notice of the refusal to be given to the applicant.

(d) Every licence authorising the carrying on of any such business as is specified in subsection (1) shall be in the prescribed form.

(e) A licence issued under subsection (1) shall be subject to such conditions as may be specified in that licence.

(f) The Board may cancel the licence issued under subsection (1) if the licensee contravenes or fails to comply with any condition to which the licence is subject.

(g) Where the Board cancels the licence under paragraph (f)
the Board shall cause notice of the cancellation to be given to the licensee.

(h) An applicant for a licence who is aggrieved by the decision of the Board refusing to issue a licence, or the licensee who is aggrieved by the decision of the Board cancelling his licence may within one month after the date of such decision appeal in writing from such decision to the Minister.

(i) The Minister's decision on any appeal under
paragraph (h) shall be final and conclusive and shall not be questioned in any court.

(4) Except under the written authority of the Board no person shall—

(a) install or cause to be installed in any place; or

(b) transfer or cause to be transferred from one location to another, a huller, or mill or plant, machinery or equipment for hulling, milling or processing of paddy and rice.

11. Control of the disposal of equipment and facilities intended, to be used for the sale, supply, distribution, transport, storage, hulling, milling or processing of paddy and rice.

On and after the coming into operation of this Act and save as otherwise expressly provided by or thereunder, no person who was carrying on the business of purchasing, selling, supplying, transporting, distributing or carrying on the business of hulling, milling, or processing of paddy and rice, shall sell, lease, transfer, hypothecate or alienate or dispose in any other manner or convert to some other use any huller, mill, plant, machinery, equipment or facilities which had been or is or are being used or is or are or was or were intended to be used by him for the purpose or in connection with his business.

12. Control of the establishment and maintenance of equipment and facilities for sale, supply, transport or distribution, hulling, milling, or processing of paddy and rice.

On and after the date of coming into operation of this Act, no person, other than the Board or any authorised purchaser, shall establish, install or maintain any plant, machinery or equipment or facilities for the sale, supply, transport or distribution, hulling, milling or processing of paddy and rice, except with the written authority of the Board, or under the authority of a permit or licence for the time being in force issued under any written law prior to the date of the coming into operation of this Act and in accordance with the terms and conditions subject to which such authority, permit or licence is granted.

13. Powers of the Board.

(1) The Board may exercise all or any of the following powers—

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

(b) to exercise the exclusive right of purchase, sale, supply, distribution, hulling, milling or processing of paddy and rice;

(c) to enter into joint schemes with any Government Department or anybody approved by the Minister for the purchase, sale, supply, distribution, transport, hulling, milling or processing of paddy and rice;

(d) to grant loans and advances to authorised purchasers and agents;

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