PEOPLE'S BANK (ACQUISITION OF PREMISES) Act

Arrangement of Sections

1. Short title.

2. Administration of this Act.

3. Acquisition of certain premises.

4. Acquisition procedure.

4A. Revocation of vesting Order.

5. Notice to persons entitled to make claims to the compensation payable under this Act in respect of any premises vested in the Bank.

6. Provisions to be complied with by the Chairman of the Board of Directors of the Bank on receipt of claims to compensation.

7. Reference to the Compensation Tribunal for an award as to compensation in respect of any premises vested in the Bank under this Act.

8. Compensation in respect of premises vested in the Bank under this Act.

9. When compensation in respect of any vested premises accrues due.

10. Proportionate payment of compensation.

11. Interest on compensation.

12. Right to compensation.

13. Provisions for cases where compensation is not accepted.

14. Constitution of the Compensation Tribunal.

15. Meetings of the Compensation Tribunal.

16. Proceedings before Compensation Tribunal.

17. Power to summon witnesses.

18. Determination of the Compensation Tribunal.

19. Compensation Tribunal may regulate its procedure at meetings.

20. The Bank and claimants to be given an opportunity of being heard before the making of an award for compensation.

21. Provisions in regard to evidence.

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

23. Disposal of premises acquired by the bank under the preceding provisions of this Act.

24. Power to enter and survey.

25. Power of Bank to call for returns.

26. Prohibition of act which diminishes the value of any premises to be vested in the Bank under this Act.

27. Informality or irregularity.

28. Financial provisions.

28A. Applications made to the Ceylon State Mortgage Bank deemed to be applications made to the People's Bank.

29. Regulations.

30. Interpretation.

16 of 1973.

11 of 1963,

33 of 1968,

1386-18-2005

AN ACT to provide for the acquisition by the People's Bank of certain premises and the disposal of such premises, and to make provision for matters connected therewith or incidental thereto.

[Date of Commencement 10th January, 1964 ]

1. Short title.

This Act may be cited as the People's Bank (Acquisition of Premises) Act.1

2. Administration of this Act.

The People's Bank established under the People's Bank Act (and hereafter in this Act referred to as the "Bank”) shall be responsible for and charged with the administration of this Act and shall, in the exercise, performance or discharge of any power, duty or function conferred or imposed upon or assigned to the Bank by or under this Act, be subject to the general direction and control of the Minister.

3. Acquisition of certain premises.

(1) Subject to the provisions of subsection (2), the Bank is hereby authorised to acquire the whole or any part of any agricultural, residential or business premises, if the Bank is satisfied that those premises were, at any time before or after the 10th day of January, 1964, but not earlier than the first day of January, 1952—

(a) sold in execution of a mortgage decree entered by a court against the owner of such premises (hereafter in this Act referred to as the "original owner”); or

(b) transferred by the owner of those premises (hereafter in this Act referred to as the "original owner”) or his heirs, executors or administrators to any other person or the heirs, executors or administrators of any other person in satisfaction of a debt which was due from the original owner or his predecessor in title to that other person and which was secured by a mortgage of those premises subsisting immediately prior to the transfer; or

(c) transferred by the owner of those premises (hereafter in this Act referred to as the "original owner”) or his heirs, executors or administrators to any other person, at the request of a mortgagee of those premises, in satisfaction or part satisfaction of a debt which was due from the original owner or his predecessor in title to that mortgagee and which was secured by a mortgage of those premises subsisting immediately prior to the transfer; or

(d) transferred by the owner of such premises to any other person after receiving from such other person a sum of money as consideration for such transfer and upon the condition that, on the repayment by the transferor (hereafter in this Act referred to as the original owners) of that sum with or without interest thereon within a specified period, such other person will re-transfer those premises to the original owner.

[S 2(1) subs by s 2(1) of Law 16 of 1973.]

(2) No premises shall be acquired under subsection (1)—

(a) unless an application in that behalf has been made to the Bank by the original owner of such premises or, where such original owner is dead or is of unsound mind or otherwise incapable of acting, by the spouse or any descendant of such person, or if there is no surviving spouse or descendant of such person, by a parent, brother or sister of such person; or

(b) if an application in that behalf had earlier been made to the Ceylon State Mortgage Bank under Chapter VA of the Ceylon State Mortgage Bank Ordinance,2 as amended by Act No. 33 of 1968, and the Ceylon State Mortgage Bank had determined that such premises should not be acquired or if a vesting Order in respect of such premises had been revoked by a divesting Order under section 70D of that Ordinance, as so amended; or

(c) unless the Bank is satisfied

(i) in the case of an application made by the original owner, that the annual average statutory income of the original owner and the other members of the family of which he is the head; or

(ii) in the case of an application made by the spouse or any descendant of the original owner,

that the annual average statutory income of such spouse and the other descendants of the original owner, computed under the provisions of the written law relating to the imposition of income tax for the three years immediately preceding the date on which the application was made by such original owner, spouse or descendant, as the case may be. does not exceed one hundred thousand rupees;

[S 2(2)(c) subs by s 2 of Act 36 of 2000.]

(d) if the Bank is satisfied that the premises to which the application relates are reasonably required for occupation as a residence for the owner of those premises or any member of the family of such owner or for the purposes of any trade, business, profession, vocation or employment of such owner or any member of his family and that such owner or member of his family has no other premises which could be used for the purpose for which the premises to which the application relates are being used; or

(e) unless, in the case of an application relating to any agricultural premises, the Bank is satisfied that the applicant is not the owner of any other agricultural premises exceeding ten acres in extent. For the purposes of paragraph (d) of this subsection, "member of the family”, when used in relation to any person, means the spouse of that person or any son or daughter of that person over eighteen years of age, or any parent, brother or sister dependent on that person.

[S 2(2) subs by s 2(2) of Law 16 of 1973.]

(2A) Where the Bank entertains an application for the acquisition of any premises referred to in subsection (1), the Bank shall—

(a) cause notice of the fact to be sent by registered post to the owner of the premises; and

(b) cause a copy of such notice to be delivered or transmitted to the proper Registrar of Lands for registration, setting out the prescribed particulars relating to such premises and stating that such premises may be acquired under this Act. Every notice under paragraph (f) shall be registered by the Registrar of Lands in the manner prescribed in the Registration of Documents Ordinance for the registration of an instrument affecting or relating to land and shall be deemed for such purposes to be an instrument affecting or relating to premises the prescribed particulars of which are set out in such notice:

Provided that if the Bank determines that such premises shall not be acquired for the purposes of this Act, the Bank shall forthwith cancel such notice and give written information of the cancellation to the Registrar of Lands who shall register such cancellation.

[S 2(2A) ins by s 2(3) of Law 16 of 1973.]

(2B) —

(a) Where the owner of any premises receives a notice under subsection (2A) relating to an application in respect of the premises, such owner shall not sell, gift, transfer, lease, mortgage or otherwise alienate the premises unless or until such application is dismissed by the Bank.

(b) Any sale, gift, transfer, lease mortgage or other alienation of any premises in contravention of the provisions of paragraph (a) of this subsection shall be null and void.

[S 2(2B) ins by s 2(3) of Law 16 of 1973.]

(3) The question whether any premises which the Bank is authorised to acquire under this Act should or should not be acquired shall be determined by the Bank and every such determination of the Bank shall be final and conclusive and shall not be called in question in any court.

(3A) for the purposes of making a determination under subsection (3), the Bank shall cause an inquiry to be held into the application by an inquiring officer appointed by the Bank. The inquiring officer appointed by the Bank shall give the owner of the premises to which the application relates and the person making the application, an opportunity of being heard either in person or by an agent authorised in that behalf, and shall have all the powers of a District Court—

(a) to summon and compel the attendance of witnesses;

(b) to compel the production of documents; and

(c) to administer any oath or affirmation to witnesses.

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