Ceiling on Housing Property

Ceiling on Housing Property


A LAW TO REGULATE THE OWNERSHIP, SIZE AND COST OF CONSTRUCTION OF HOUSES AND TO PROVIDE FOR MATTERS INCIDENTAL THERETO OR CONNECTED THEREWITH.

BE it enacted by the National State Assembly of the Republic of Sri Lanka as follows:-
Short title.
1. This Law may be cited as the Ceiling on Housing Property Law, No. 1 of 1973.

PART I
REGULATION OF OWNERSHIP OF HOUSES

Permitted number of houses.
2.

(1) The maximum number of houses which may be owned by an individual who is a member of a family shall be such number of houses which together with the number of houses owned by the other members of that family is equivalent to the number of dependent children, if any, in that family, increased by two.
(2) The maximum number of houses which may be owned by an individual who is not a member of a family shall be two.
(3) The maximum number of houses which may be owned by any body of persons, corporate or unincorporate, shall be such number of houses as is determined by the Commissioner to be necessary for the purpose of providing residence to the employees and functionaries of such body or of carrying out the objects (other than any object for the letting of houses on rent) of such body:
Provided, however, that-

(a) the preceding provisions relating to the maximum number of houses that may be owned, shall not apply to a local authority, a Government Department or a public corporation; and
(b) a house not exceeding five hundred square feet in floor area situated in an estate owned by a public company and occupied by an employee thereof shall not be taken into account in determining for the purposes of this Law the number of houses owned by such public company.
(4) The maximum number of houses which may be owned by any person according to the preceding provisions of this section is hereinafter referred to as the “permitted number of houses “.
(5) An individual shall for the purposes of this Law be deemed to be a member of a family if such individual has a spouse or a dependent child or is a dependent child of any individual.
Determination of a number of houses in certain cases
3. In determining the number of houses for the purposes of section 2-

(1) a house which belongs to a religious organization or charitable trust or which is part of an industrial, commercial or agricultural concern shall be excluded, if, and only if, such house is in the opinion of the Commissioner used exclusively for the purposes of such religious organization, trust or concern;
(2) a person who, on or after the date of commencement of this Law, becomes the owner, otherwise than by intestate succession, of not less than one-half share of any house owned in undivided shares shall be deemed to own such house;
(3) a person who, on or after the date of commencement of this Law, becomes the owner, otherwise than by intestate succession of less than one-half share in more than one house owned in undivided shares, shall be deemed to own the number of houses in which he owns such shares, reduced by one;
(4) a person who, prior to the date of commencement of this Law, owned shares in houses owned in undivided shares, shall be deemed to own such number of houses as is equivalent to the aggregate of such shares computed to the nearest whole number.
Persons who construct houses for sale not deemed to own such houses.
4. Where any person constructs a house for the purpose of sale, he shall not be deemed for the purposes of this Law to own such house-

(a) if such house is not occupied before it is sold, and is sold within twelve months of the date on which such house was, in the opinion of the Commissioner, ready for occupation, or within such extended period, not exceeding a further period of twelve months, as may be allowed by the Commissioner on application made by such person; or
(b) if an application has been made to the Commissioner by any other person for the purchase of such house and such house is not occupied whilst such application is pending.
Reduction of number of houses.
5. Where any person who owned a number of houses on November 9, 1971, has, after such date and before the date of commencement of this Law, reduced the number of houses owned by him otherwise than by outright sale or gift, such person shall be deemed to own the number of houses he owned on November 9, 1971, unless he satisfies the Commissioner that he had taken steps to so reduce the number of houses prior to November 9, 1971, or had reduced such number for the purpose of providing accommodation to the members of his family.
Amalgamation of houses.
6. Where any person who owns the permitted number of houses applies to the Commissioner for the amalgamation of two or more houses, the Commissioner may, with the concurrence of the relevant authority, grant permission so to do if the Commissioner is satisfied, that such amalgamation is justified having regard to the requirements of housing accommodation of the family of such person, and if any of such houses is not let to a tenant.
Houses on leased lands.
7. A person shall, for the purposes of this Law, be deemed to be the owner of a house notwithstanding that such house was constructed by him on land leased to him by the Government or by any other person.
Declaration by owners of houses in excess of the permitted number of houses and Vesting of such houses if no declaration or correct declaration is made.
8.

(1) Every individual who is not a member of a family and who owns houses in excess of the permitted number of houses on the date of commencement of this Law shall, within twelve weeks of such date, and every body of persons owning houses in excess of the permitted number of houses on such date shall, within six weeks of the date on which the determination under this Law by the Commissioner, or as the case may be, by the Board of Review, of the maximum number of houses that may be owned by such body was communicated to such body, send by registered post to the Commissioner a declaration-

(a) specifying the number of houses owned by such individual or body including houses owned in undivided shares;
(b) specifying the houses the ownership of which such individual or body proposes to retain: and
(c) giving such particulars relating to the houses: referred to in paragraph (a) as are set out in the Schedule hereto.

Such individual or body shall simultaneously intimate in writing to the tenant, if any, of each house the ownership of which such individual or body does not propose to retain that the ownership of such house is not proposed to be retained.

(2) Where houses in excess of the permitted number of houses are owned on the date of commencement of this Law by the members of a family, the male spouse, or where such male spouse is not living or is not capable in law so to do, the female spouse, shall within twelve weeks of such date, send by registered post to the Commissioner a declaration-

(a) specifying the number of houses owned by each member of such family including houses owned in undivided shares;
(b) specifying the houses the ownership of which the members of such family propose to retain; and
(c) giving such particulars relating to the houses referred to in paragraph (a) as are set out in the Schedule hereto.

Such spouse shall simultaneously intimate in writing to the tenant, if any, of each house owned by each member of such family the ownership of which is not proposed to be retained that the ownership of such house is not proposed to be retained.

(3) Where the person sending the declaration under subsection (2) is not the owner of any house the owner ship of which is not proposed to be retained, the declaration shall be accompanied by a statement of consent from the owner of such house. Where such owner does not give such consent, the Commissioner shall, after due inquiry, determine the houses the ownership of which shall be retained by the members of the family.
(4) Any person who has, without reasonable cause, ‘ failed to send the declaration within the period referred to in subsection (1) or subsection (2), as the case may be, or has made any incorrect declaration in regard to the number of houses owned by him or by his family, as the case may be, shall be guilty of an offence under this Law, and any such house owned by such person or by any member of the family of such person as may be “specified by the Commissioner by Notification published in the Gazette shall vest in the Commissioner with effect from such date as may be specified therein.
(5) Any house the ownership of which is not proposed to be retained in terms of any declaration made under this section, and in the case of a determination made by the Commissioner under subsection (3), any house the ownership of which is not retained as a result of such determination, is hereinafter referred to as a ” surplus house “.
Tenants may apply to purchase surplus houses.
9. The tenant of a surplus house or any person who may succeed under section 36 of the Rent Act, No. 7 of 1.972, to the tenancy of such house may, within four months from the date of commencement of this Law, apply to the Commissioner for the purchase of such house.
Houses in excess of the permitted number of houses may be sold within twelve months.
10. Where, on the date of commencement of this Law, any person owns any house in excess of the permitted number of houses, such person may, within a period of twelve months from such date, dispose of such house with notice to the Commissioner, unless the tenant of such house or any person who may under section 38 of the Rent Act, No. 7 of 1972, succeed to the tenancy of such house, has made application with simultaneous notice to the owner for the purchase of such house.
Vesting of houses in excess of the permitted number of houses.
11.

(1) Any house owned by any person in excess of the permitted number of houses which has not been disposed of within a period of twelve months of the date of commencement of this Law shall on the termination of such period vest in the Commissioner:
Provided, however, that where the Commissioner, on application made to him by the owner of the house, is satisfied that the failure to dispose of the house was due to circumstances beyond the control of the owner, the Commissioner may, by Notification published in the Gazette, defer the vesting of the house for a further period not exceeding twelve months.
(2) Where any person becomes on any day after the date of commencement of this Law the owner of a house in excess of the permitted number of houses, he shall forthwith so notify to the Commissioner and specify the house the ownership of which he does not propose to retain, and such house shall, with effect from such date as may be specified by the Commissioner by Notification published in the Gazette, vest in the Commissioner.
(3) Where on any day after the date of commencement of this Law any person becomes entitled to own any house in excess of the permitted number of houses as on such date, he shall so notify to the Commissioner who may, if any house owned by such person and vested in the Commissioner under the provisions of this Law continues to be so vested at the time of such notification, by Order published in the Gazette, divest himself of the ownership of such house, and on the publication in the Gazette of such Order, such house shall be deemed never to have vested in the Commissioner.
Vested houses.
12.

(1) Any house vested in the Commissioner under this Law may be transferred by the Commissioner to any local authority, Government Department or public corporation, subject to such terms and conditions as the Minister may determine.
(2) Any house vested in the Commissioner under this Law shall, if the Commissioner proposes to sell such house, be offered for sale, in the first instance, to the tenant, if any, of such house.
Applications by tenants for purchase of certain houses.
13. Any tenant may make application to the Commissioner for the purchase of the house let to him where no action or proceedings may under the Rent Act, No. 7 of 1972, be instituted for the ejectment of the tenant of such house on the ground that such house is reasonably required for occupation as a residence for the landlord of such house or for any member of his family:
Provided, however, that where the application made is to purchase a house in respect of which an application may be made under section 14 (1), the Commissioner shall not take any action in respect of the application made unless the owner of such house consents to the sale of such house; and such consent may be withheld under this Law in respect of only one of the permitted number of houses.
For the purposes of this section and section 12, ” tenant ” includes a tenant in whose favour an order for the delivery of possession of a house has been made under section 5 of the Protection of Tenants (Special Provisions) Act, No. 28 of 1970.
Sale of certain houses to the Commissioner by owners.
14.

(1) Any person may make application to the Commissioner for the sale to the Commissioner of any house, owned by such person, if-

(a) such house is let to a tenant and is within the permitted number of houses;
(b) the standard rent per month of such house does not exceed one hundred rupees;
(c) the ownership of such house was acquired by such person by construction or purchase before the specified date, or by gift or inheritance from a parent or spouse who had acquired ownership of such house before the specified date; and
(d) such person is not entitled to institute action or proceedings under the Rent Act, No. 7 of 1972, for the ejectment of the tenant of any other house on the ground that such house is reasonably required for occupation as a residence for him or for any member of his family.

In this subsection, ” specified date ” means the date on which the tenant, for the time being, of the house, or the tenant upon whose death the tenant for the time being succeeded to the tenancy under section 36 of the Rent Act, No. 7 of 1972, or section 18 of the Rent Restriction Act (Chapter 274), came into occupation of the house.

(2) No person may, on application made under subsection (1), be entitled to sell to the Commissioner under this Law more than one of the permitted number of houses unless the Commissioner is satisfied that any additional house for the sale of which an application is made under subsection (1) will be purchased by the tenant of such house at the price payable therefor by the Commissioner.
(3) Where an application is made under subsection (1) and the applicant is prepared to sell such house on such terms and conditions as may be determined by the Commissioner, including a condition that the proceeds of the sale of such house shall be utilized for the construction or purchase of a house, the Commissioner shall so notify to the Minister who may, by Order published in the Gazette, vest such house in the Commissioner with effect from such date as may be specified in the Order.
(4) Where in respect of any house, applications have been made both under section 13 and this section, the application under section 13 shall not be proceeded with and it shall be deemed that only an application Tinder this Section has been made in respect of such house.
Date of vesting and title to houses vested.
15.

(1) Before the date specified by the Commissioner or by the Minister under this Law, as the date on which any house vests in the Commissioner, the Commissioner or the Minister, as the case may be, may from time to time, alter, by Notification or Order, as the case may be, published in the Gazette, the date on which such house shall so vest.
(2) Where any house is vested in the Commissioner under this Law, the Commissioner shall have absolute title to such house and free from all encumbrances, and such vesting shall be final and conclusive for all purposes against all persons whomsoever, whatever right or interest they have or claim to have to, or in, such house:
Provided, however,, that-

(a) the local authority of the area in which the house is situated shall have a lien on the amount payable to the owner of the house as the price of the house, for the recovery of any rates or taxes payable to the local authority by the owner in respect of the house; and
(b) where the house was at the time of vesting subject to a mortgage, the mortgagee shall have a lien on the amount referred to in paragraph (a), for the recovery of any sum due to him.
Vesting of appurtenant lands.
16.

(1) Where any house which is not a flat or a tenement is vested in the Commissioner under this Law, there shall also be vested in the Commissioner such extent of land as is in the opinion of the Commissioner reasonably appurtenant to the house.
(2) Where any flat is vested in the Commissioner under this Law, there shall also be vested in the Commissioner the land and other rights as are appurtenant to the flat.
(3) Where any tenement is vested in the Commissioner under this Law, there shall also be vested in the Commissioner such extent of land and such rights as in the opinion of the Commissioner, is or are appurtenant to the tenement.
Applications to purchase houses.
17.

(1) Where an application has been made under this Law for the purchase of a house, and the Commissioner is satisfied-

(a) that such house is situated in an area which in his opinion will not be required for slum clearance, development or redevelopment or for any other public purpose;
(b) that it is feasible to alienate such house as a separate entity; and
(c) that the applicant is in a position to make the purchase,

the Minister may, on being so notified by the Commissioner, by Order (hereinafter referred to as a ” vesting Order “) vest such house in the Commissioner with effect from such date as may be specified therein.

(2) As soon as may be after a house is vested in the Commissioner under subsection (1), the Commissioner shall enter into an agreement with the applicant for the sale of such house to the applicant, subject to the following conditions: –

(a) that the applicant shall pay to the Commissioner a lump sum or on rent purchase terms or in such instalments as may be determined by the Commissioner, the amount determined under this Law as the price payable for such house to the former owner and an additional sum of five per centum of such amount to cover the costs incurred by the Commissioner;
(b) that until the amount payable as the price of such house is finally determined under this Law, the applicant shall make to the Commissioner a monthly payment of an amount not less than the monthly rent payable for such house, which payment shall be set off against the amount payable as the price of such house;
(c) that the applicant shall be responsible for the repairs to, and the maintenance of, the house and shall insure the house against loss or damage by fire, civil commotion and riot and pay all rates and taxes due to any local authority; and
such other conditions as may be determined by the Commissioner.
(3) Where the applicant fails to comply with any of the aforesaid conditions, the agreement shall be deemed to be null and void and the applicant shall pay to the Commissioner such costs as may have been incurred by the Commissioner in respect of the application.
(4) The provisions of subsections (2) and (3) shall mutatis mutandis apply in the case of the sale of a house to a tenant who accepts the offer made under section 12 and in the case where the Commissioner proposes to sell any house vested in him under this Law to any other person.
Taking possession of a house vested in the Commissioner.
18.

(1) Where for the purposes of development or otherwise, the Commissioner considers that it is necessary to take possession of any house vested in him, any person specially or generally authorized in that behalf by the Commissioner may take possession of such house.
(2) No person shall, under subsection (1), take possession of any occupied building or any part of an occupied building without giving the occupier of the building at least seven days’ notice of the intention to do so.
(3) The Commissioner shall prepare or cause to be prepared a report as to the condition and state of repair of every house vested in the Commissioner.
Prevention of or obstruction to taking possession of house for and on behalf of the Commissioner.
19.

(1) Every person who-

(a) prevents, obstructs or resists; or
(b) directly or indirectly causes anyone to prevent, obstruct or resist,

any person from or in taking possession under section 18 of any house for and on behalf of the Commissioner shall be guilty of an offence under this Law.

(2) Where a person authorized by the Commissioner under section 18 to take possession of any house for and on behalf of the Commissioner is unable or apprehends that he will be unable to take possession of such house because of any obstruction or resistance that has been or is likely to be offered, on his making an application in that behalf to the Magistrate’s Court having jurisdiction over the place where the house is situated, the Magistrate shall issue an order of the Court directing the Fiscal to deliver possession of that house to him for and on behalf of the Commissioner.
(3) Where an order under subsection (2) is issued to the Fiscal by a Magistrate’s Court, he shall forthwith execute that order and shall in writing report to the court the manner in which that order was executed.
(4) Where an order under subsection (2) 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 am steps taken or proposed to be commenced in any court with a view to questioning, varying or setting aside such order.
(5) For the purpose of executing an order issued by a Magistrate’s Court under subsection (2), the Fiscal or any person acting under his direction may use such force as may be necessary to enter the house to which that order relates and to eject any person in occupation thereof and to deliver possession of the house to the person who is authorized under section 18 to take possession thereof for and on behalf of the Commissioner.
Notice to persons entitled to make claims to the price payable id respect of any vested house.
20. Where any house is vested in the Commissioner, the Commissioner shall, by notice published in the Gazette and in such other manner as may be determined by him, direct every person who was interested in such house immediately before the date on which such house was so vested to make, within a period of one month reckoned from the date specified in the notice, a written claim to the whole or any part of the price payable under this Law in respect of such house, and to specify in the claim-

(a) his name and address,
(b) the nature of his interest in such house,
(c) the particulars of his claim, and
(d) how much of such price is claimed by him.
Provisions to be complied, with by Commissioner on receipt of claims.
21.

(1) Upon the receipt of any claim made under section 20, the Commissioner shall intimate to the claimant the price he proposes to pay for the house and require the claimant, within such time as may be specified by him: –

(i) to furnish to the Commissioner a written statement setting out whether or not he agrees with the price proposed to be paid and, if he does not so agree, any objections that he may have to the price and the grounds of such objections; and
(ii) to produce to the Commissioner all documents relied on by him in support of any such objection.
(2) Where the claimant agrees with the price proposed to be paid by the Commissioner the Commissioner shall pay such price in accordance with the provisions of this Law.
Reference to Board for award as to price payable.
22.

(1) The Commissioner shall refer to the Board of Review (hereinafter referred to as ” the Board “) for determination the price payable in respect of every house vested in the Commissioner (other than a house in regard to the price payable for which the claimant has under section 21 agreed with the price proposed) and shall transmit to the Board all claims made to such price, together with all documents furnished by the claimants in support of their claims.
(2) A reference made under subsection (1) to the Board is hereafter in this Law referred to as a ” reference for an award as to price “.
Determination of price payable.
23. The price payable for any house vested In, the Commissioner under this Law shall be –

(a) the market value of the house as at the date of vesting, such market value being determined in the case of a house let to a tenant on the basis that recovery of possession of such house is possible only in accordance with the provisions of the Rent Act, No. 7 of 1972, and without taking into consideration the value of any additions or improvements made by the tenant or by the person on whose death the tenant succeeded to the tenancy under section 36 of the Rent Act, No. 7 of 1972, or section 18 of the Rent Restriction Act (Chapter 274); or
(b) where the ownership of the house was acquired by purchase or otherwise prior to April 1, 1957, or otherwise than by purchase on or after April 1, 1957, the market value thereof as at April 1, 1957, increased by an amount calculated at a rate of six per centum of such value for each year up to the date of vesting and an additional sum which is equal to the reasonable value of any additions or improvements made to such house by the former owner, reduced by the net income for that period, and where the ownership of the house was acquired by purchase on or after April 1, 1957, the lowest purchase price as specified in any deed of purchase in respect of such house executed after April 1, 1957 increased by an amount calculated at a rate of six per centum of such purchase price for each year from the date of such deed up to the date of vesting and an additional amount equal to the reasonable value of any additions and improvements made to such house by any owner after the date of such deed, reduced by the net income for that period,
whichever amount is lower, and where the provisions of paragraph (b) are not applicable, the amount as determined under the provisions of paragraph (a):

Provided however that-

(i) in determining the price payable for any house vested under section 14, the fact that the owner of such house is not entitled to institute action or proceedings for the ejectment of the tenant thereof on the ground that such house is reasonably required for occupation as a residence by the landlord of such house or any member of his family shall not be taken into consideration; and
(ii) in the case of a land where there are tenements the price payable for any land in excess of the lands which are appurtenant to such tenements shall be on the basis that the only development possible is by the construction of similar tenements in such excess land.

For the purposes of paragraph (b) of this section, ” net income for an year ” means the amount receivable for an year as authorized rent less the amount payable for the year by way of rates and in the case of a house to which the Rent Act, No. 7 of 1972, does not apply, such amount as may be determined by the Board.

Provision for cases where the amount is not accepted, &c.
24. Where any amount payable as the price of any house vested in the Commissioner to any person under this Law is not accepted by him when it is tendered to him or where such person is dead or is not in existence or is not known, it shall be paid to any District Court to be drawn by the person or persons entitled thereto.
Deduction from the amount payable.
25. Where a person is entitled to the amount payable as the price of any house vested in the Commissioner under this Law, the Commissioner shall pay from such amount to the Commissioner of Inland Revenue any sum certified under the hand of the Commissioner of Inland Revenue to the Commissioner to be due from such person as tax on income or profits or as personal tax.
Interest on amount payable.
26. Any amount payable as the price of any house vested in the Commissioner under this Law, less any deductions that may be made from such amount under this Law, shall carry interest, as from the date on which it accrues due until payment, at such rate as may be determined by the Minister with the concurrence of the Minister in charge of the subject of Finance.
Where the amount payable as interest under the preceding provisions of this section exceeds the amount which is equivalent to the rent payable for such house for the period commencing on the date on which the house was vested and ending on the date on which the payment of the price of such house was made, less any sum payable by way of rates and any expenditure by way of repairs, then, the Commissioner shall, in lieu of paying such interest, pay the last-mentioned amount.
Date of commencement of amount payable.
27. The amount payable as the price of any house Tested in the Commissioner under this Law shall be considered as accruing due from the date on which the house was vested.
Manner and mode of payment.
28.

(1) The amount payable as the price of any house vested in the Commissioner under this Law shall be paid in cash and bonds issued by the Central Bank of Ceylon in such proportion as may be determined by the Minister with the concurrence of the Minister in charge of the subject of Finance.
(2) The following provisions shall apply to the bonds issued under subsection (1): –

(a) such bonds shall be of twenty-five years duration and shall carry five per centum interest;
(b) the holder of the bonds shall be entitled to surrender them before maturity with the approval of the Minister for the following purposes: –

(i) the construction of residential buildings;
(ii) the payment of taxes of whatever kind due to the State;
(iii) relief of extreme personal hardship; and
(iv) such other purposes as may be specified by regulations under this Law.
Constitution of the Board of Review.
29.

(1) There shall be established for the purposes of this Law a Board of Review consisting of seven members appointed by the Minister of whom at least four shall be persons with judicial or legal experience and at least two shall be persons with an adequate knowledge of the valuation of land (hereinafter referred to as “valuer members “).
(2) A person shall be disqualified for being appointed or being a member of the Board if he is a Member of the National State Assembly.
(3) A member of the Board with judicial or legal experience shall be appointed to be the Chairman, and another member with similar experience shall be appointed to be the Vice-Chairman, of the Board by the Minister.
(4) Every member of the Board shall, unless he earlier vacates office or is removed therefrom by the Minister, hold office for a period of three years. Any member of the Board who vacates office by effluxion of time shall, be eligible for reappointment.
(5) There shall be appointed a Secretary to the Board (hereinafter referred to as the ” Secretary “) and such other officers and servants as may be necessary for the performance of the work of the Board.
(6) The members of the Board shall be remunerated at such rates as may be determined by the Minister with the concurrence of the Minister in charge of the subject of Finance.
Meetings of the Board.
30.

(1) The Secretary shall, under the direction of the Chairman, or in his absence the Vice-Chairman, of the Board, convene meetings of the Board for the consideration and determination of references made to the Board.
(2) The Chairman or the Vice-Chairman and two other members of the Board one of whom shall be a valuer member shall be summoned to a meeting of the Board. Such other members shall be chosen by lot by the Secretary.
(3) Two separate meetings of the Board may be convened and held at the same time to consider and determine different references.
(4) Where the Chairman or the Vice-Chairman is summoned to a meeting of the Board, the Chairman or Vice-Chairman, as the case may be, shall preside at that meeting, and in his absence the members of the Board summoned to and present at that meeting shall choose from themselves a Chairman for that meeting.
(5) A member of the Board who is interested in any matter which is the subject of a reference or who has been consulted as an advocate or a proctor or in any other capacity in regard to that matter by or on behalf of any person interested therein shall not participate in any proceedings of a meeting of the Board on such reference.
(6) A meeting of the Board may from time to time be postponed or adjourned.
Proceedings before Board.
31.

(1) Every reference shall be considered and determined at a meeting of the Board.
(2) The Secretary shall fix a date, time and place for the consideration and determination by the Board of each reference.
(3) The Secretary shall, in respect of every reference, keep a record of all such proceedings before the Board as relate to that reference.
Power to summon witnesses. &c.
32.

(1) The Chairman or the Vice-Chairman of the Board and, if the Chairman or the Vice-Chairman is not presiding at any meeting of the Board, the Chairman of that meeting shall, for the purposes of the consideration and determination of any reference, 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.
(2) Every person who attends a meeting of the Board as a witness shall be paid as travelling and other expenses such sum as shall be determined by the Chairman or in his absence the Vice-Chairman of the Board.
Persons giving evidence bound to state the truth.
33. Every person giving evidence on any matter before a meeting of the Board shall be bound to state the truth on such matter.
Determination of the Board.
34.

(1) The determination made at a meeting of the Board on any matter considered at that meeting shall be deemed to be the determination of the Board on that matter.
(2) Where the members of the Board who consider any matter disagree with regard to the determination on that matter, the determination of the majority of them shall be the determination of the Board on that matter, and, where the members are equally divided in their opinion, the determination supported by the Chairman of the meeting by which that matter is considered shall be the determination of the Board on that matter.
(3) Every determination of the Board shall contain the reasons therefor.
Board may regulate its procedure at meetings
35. Subject to the provisions of this Law in respect of procedure, the Board may lay down the procedure to be observed at meetings of the Board.
Commissioner, tenants and claimants to be given opportunity of being heard.
36. Where a reference for an award as to price is made to the Board, the Board shall, before making such award, give the Commissioner, any tenant who has applied for the purchase of the house in respect of which such reference was made and every person who has made a claim, to the whole or part of the amount payable as the price of the house an opportunity of being heard in person or by an agent authorized in that behalf.
Provisions in regard to evidence.
37. Where there is a copy of any report made by or under the authority of the Commissioner in regard to the condition of any house vested in the Commissioner, then that report shall, in any proceedings before the Board relating to the determination of the price of such house, be prima facie evidence of the facts stated therein until the contrary is proved.
Award by Board on reference.
38.

(1) Where a reference for an award as to the price is made to the Board in respect of any house vested in the Commissioner, the Board shall, after considering all such matters and hearing all such witnesses as may be necessary for the purpose,- make an award determining-

(a) whether or not each person who has made a claim, is a person entitled to it, and if so, the capacity in which he is so entitled;
(b) the amount payable as the price in respect of such house in accordance with the provisions of this Law; and
(c) the apportionment of such amount among the persons entitled to it:
Provided that, where there is a dispute as to the persons entitled to such amount or as to the apportionment of such amount among the persons entitled to such amount, the Board shall defer making an award and shall refer the dispute for decision to the District-Court within whose local jurisdiction such house is situate, and shall, after such Court makes its decision on such dispute make an award in accordance with such decision.
(2) Where no person makes a, claim to such amount-in respect of any house vested in the Commissioner, it shall not be necessary to determine in the award under this section the matters specified in paragraphs (a) and (c) of subsection (1) and to comply with the provisions of subsection (3) relating to the giving of notice of the award to claimants to such amount.
(3) The Board shall cause written notice of its award to be given to the Commissioner and the claimants to such amount.
(4) An award of the Board shall be final and shall not be called in question in. any court.
Appeals against decisions of Commissioner.
39.

(1) Any person aggrieved by any decision or determination made by the Commissioner under this Law may, within one month of the date on which such determination in communicated to such person, appeal against such decision or determination to the Board, stating the grounds of such appeal.
(2) The provisions of sections 30 to 86 shall, mutatis mutandis, apply to the hearing and determination of any appeal made under subsection (1).
(3) The determination of the Board on any appeal made under subsection (1) shall be final and shall not be called in question in any court.

PART II
REGULATION OF CONSTRUCTION OF HOUSES.

Restriction of floor area of houses.
40. No person shall construct a house which exceeds two thousand square feet in floor area inclusive of the thickness of the external walls:
Provided, however that a persons may, with the prior permission, in writing of the relevant authority, construct communal living quarters such as hostels and barracks which exceed the aforesaid floor area.
Maximum extent of land on which houses may be constructed
41. No person shall construct a house which together with the land appurtenant thereto occupies an extent which exceeds twenty perches in municipal areas, and forty perches in urban areas:
Provided, however, that it shall not be a contravention of the provisions this section where the extent of land in excess of the extent specified in the preceding provisions of this section, is an extent of land on. which in the opinion of the relevant authority, it is not practicable or possible to construct another house:
Provided further that in. the case of the construction of two or more flats, the extent of the land appurtenant to such flats shall be such extent as may be determined by the relevant authority.
Restriction on cost of constructing houses.
42. Where any person constructs a house the cost per square foot of the floor area of which exceeds such amount as the Minister may, from time to time, fix by Notification published in the Gazette, he shall be guilty of an offence under this Law, and shall, on conviction after summary trial before a Magistrate, be liable to a fine not less than three times the amount by which the cost of constructing such house exceeded the cost of construction as determined according to the amount fixed by the Minister.
Provisions of this Part not to apply to houses construction of which commenced before the commencement of this Law.
43. The provisions of this Part shall not apply to any house the construction of which had commenced before the date of commencement of this Law.

PART III
GENERAL.

Regulations.
44.

(1) The Minister may make regulations for the purpose of carrying out the provisions and giving effect to the principles of this Law.
(2) Without prejudice to the generality of the powers conferred by subsection. (1), the Minister may make regulations for or in respect of all matters stated or required by this Law to be prescribed or in respect of which regulations are authorized or required to be made.
(3) Every regulation made by the Minister shall be published in the Gazette and shall come into operation on the date of such publication or upon such later, date as may be specified in the regulation.
(4) Every regulation made by the Minister shall, as soon, as convenient after its publication in the Gazette, be brought before the National State Assembly for approval. Every regulation which is not so approved shall be deemed to be rescinded as from the date of such disapproval, but without prejudice to anything previously done thereunder. Every regulation so approved shall be as valid and effectual as though it were herein enacted.
Offences.
45.

(1) Every person who contravenes or fails to comply with any provisions of this Law or of any regulations made thereunder shall be guilty of an offence under this Law.
(2) Every person who is guilty of an offence under this Law other than an offence under section 42 shall, on conviction after summary trial before a Magistrate, be liable to imprisonment of either description for a period not exceeding six months or to a fine not exceeding one thousand rupees or to both such imprisonment and fine.
(3) Where a person committing an offence under this Law is a company or other body corporate, or an association of persons (whether incorporated or not) or a firm, every director, manager, secretary, agent or other officer or person concerned with the management thereof, and every partner of the firm shall, unless he proves that the offence was committed without his knowledge or consent, be deemed to be guilty of such offence.
This Law to prevail over other written law.
46. The provisions of this Law shall have effect notwithstanding anything contained in any other written law, and accordingly in the event of any conflict or inconsistency between the provisions of this Law and such other law, the provisions of this Law shall prevail over such other law.
Interpretation.
47. In this Law, unless the context otherwise requires-
” Commissioner ” means the Commissioner of National Housing;
” dependent child ” in relation to an individual means a child under eighteen years of age other than-

(a) a married child, and
(b) a child not maintained by the parents, and having independent means of livelihood,
and includes-

(i) a step-child of that individual or his spouse,
(ii) a child of that individual born of a marriage by habit and repute or according to custom,
(iii) a child authorized by any adoption order made under the Adoption of Children Ordinance to be adopted by that individuals,
(iv) where that individual is not a citizen of Sri Lanka and he satisfies the Commissioner that he has a child whom he has adopted in accordance with the law of the country of which he is a subject or citizen, such child, and
(v) where such child or step-child is not under the age of eighteen years, if that child either lived with him and was maintained by him, or was maintained by him in any sanatorium, asylum or educational establishment, but does not include any adopted child other than an adopted child referred to in paragraph (iii) or paragraph (iv);
” flat ” means a self-contained domestic suite of rooms in a building of more than one storey;
” house ” means an independent living unit, whether assessed or not for the purpose of levying rates, constructed mainly or solely for residential purposes, and having a separate access, and through which unit access cannot be had to any other living accommodation, and includes a flat or tenement, but shall not include-

(1) sub-divisions of, or extensions to, a house which was first occupied as a single unit of residence; and
(2) a house used mainly or solely for a purpose other than a residential purpose for an uninterrupted period of ten years prior to March 1, 1972:
” local authority ” means a Municipal Council, Urban Council, Town Council or Tillage Council;
” municipal area” means an area within the administrative limits of a Municipal Council;
” person ” includes a body of persons corporate or unincorporate;
” prescribed “means prescribed by regulation made under this Law;
” public company ” means-

(a) a company registered as a public company under the Companies Ordinance; or
(b) a company to which Part XI of the Companies Ordinance applies;
” public corporation ” means any corporation, board or other body which was or is established by or under any written law, other than the Companies Ordinance, with capital wholly or partly provided by the Government by way of grant, loan or other form;
” relevant authority ” means, where a house is situated or is to be constructed-

(a) within the limits of a Municipal Council, Urban Council or Town Council, the Mayor of the Municipal Council or the Chairman of the Urban Council or Town Council, as the case may be;
(b) within the administrative limits of any Village Council, the Assistant Commissioner of Local Government for the administrative region within which such limits are situated or if the Minister in charge of the subject of Local Government by Order published in the Gazette so directs, the Chairman of the Village Council;
(c) in any place outside any of the limits aforesaid, the Assistant Commissioner of Local Government for the administrative region within which such place is situated;
” tenement ” means a building consisting of two or more separately let dwelling houses bearing separate assessment numbers, each house having any of the following in common, namely, latrines, bathing places, kitchens or verandahs; and
” urban area ” means an area within the administrative limits of an Urban Council.

SCHEDULE

Particulars

1. Full name and address of the owner:
2. Name and address of declarant if he Is not the owner;
3. Situation of the houses. Give name of land, assessment number, name of street, ward and town/village:
4. State whether owned in full: If owned in shares give the owner’s share in the house;
5. Particulars of ownership-
(a) by purchase- Give deed number, name of notary, date of attestation, the extent of land and the consideration mentioned in the deed:

(b) if other than by purchase, state how ownership is derived i.e., gift, inheritance and give details as in (a):

6. Extent of appurtenant land (attach copy of survey plan or dimensioned diagramatic sketch);
7.
(a) State whether the house was constructed by the owner:

(b) State whether alterations or improvements were made after purchase and give details:

8. Give details of all encumbrances such as mortgage, lease. etc:
9. Name and address of the tenant:
10. Give the date of commencement of the tenancy of the present tenant:
11. State the standard rent and authorized rent of the house:
12. State the rent charged:
13. State whether the ownership of the house is proposed to be retained under this Law: