Estates (Control Of Transfer And Acquisition)

Estates (Control Of Transfer And Acquisition) AN ACT TO CONTROL THE TRANSFER OF OWNERSHIP OF ESTATES AND TO PROVIDE FOR THE ACQUISITION IN THE NATIONAL INTEREST OF ESTATES FOR AND ON BEHALF OF THE CROWN AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO. BE it enacted by the Queen’s Most Excellent Majesty, by and with the advice and consent of the House of Representatives of Ceylon in this present Parliament assembled, and by the authority of the same, as follows: – Short title and date of operation. 1. This Act may be cited as the Estates (Control of Transfer and Acquisition) Act, No. 2 of 1972, and shall come into operation on such date as may be appointed by the Minister by Order published in the Gazette (hereinafter referred to as the ” appointed date “). Transfer of Ownership of an estate to be null and void in certain circumstances. 2. (1) The transfer of ownership of any estate on or after the appointed date shall be null and void unless- (a) a certificate of consent of the Minister to such transfer has been previously obtained by the transferor; and (b) such transfer is effected in accordance with the conditions, if any, subject to which such consent has been granted. (2) Where a certificate of consent to the transfer of ownership of any estate is issued by the Minister, such certificate shall be attached to the deed by which such transfer is effected, and the notary attesting such deed shall in his attestation state that such certificate has been issued in respect of such transfer and specify the number, if any, and the date of issue, of such certificate. (3) A notary who attests a deed effecting a transfer of ownership of any estate on or after the appointed date shall deliver or transmit a copy of the deed to the Permanent Secretary on or before the fifteenth day of the month next succeeding that in which such deed is attested by him. (4) If a notary fails to comply with the provisions of sub-section (2) or sub-section (3), he shall be guilty of an offence under this Act. Applications for consent of Minister. 3. Every application for the consent of the Minister to the transfer of ownership of any estate shall- (a) be made in writing by the proprietor or any one of the proprietors of such estate or by the authorized agent of such proprietor or proprietors; (b) be addressed to the Permanent Secretary and transmitted to or delivered at his office; (c) state the name and address of such proprietor or each of such proprietors; (d) specify the situation and extent of such estate, the plantations thereon, the area covered by each such plantation and the yield of such plantation in each of the three calendar years preceding that in which the application is made; (e) describe the buildings, factories, machinery, implements, vehicles and other things movable and immovable belonging to such estate; (f) state the name and address of the person to whom it is proposed to transfer the ownership of such estate, if this information is available at the time the application is made; (g) state the consideration to be paid by such person, if such consideration has been decided upon at the time the application is made; and (h) contain such other particulars as may be prescribed. Furnishing of information and production of evidence, and inspections, required for the consideration of applications. 4. (1) The Permanent Secretary may, by written notice, direct any person who has made an application under section 3 or any person who is reasonably believed by the Permanent Secretary to have a knowledge of the necessary facts relating to the estate in respect of which such application has been made- (a) to furnish, within the time specified in the notice, such information relating to the subject-matter of the application as may be so specified; or (b) to produce or cause to be produced, within the time specified in the notice, such documentary or other evidence for the consideration of the application as may be so specified. (2) A person to whom a notice under sub-section (1) is sent shall comply with such notice within the time specified therein. (3) Any person authorized in writing by the Permanent Secretary may, at any time between sunrise and sunset, enter any estate to which an application made under section 3 relates for the purpose of carrying out any inspection or making any survey plan and may request any person for the time being in charge of such estate to produce, and may make copies of any entries in, any record maintained in respect of such estate. (4) The person for the time being in charge of any such estate shall admit thereto any person who is empowered by sub-section (3) to enter such estate and shall, if requested to do so, produce to the person so empowered any record maintained in respect of such estate and permit him to make a copy of any entries in such record and to make any inspection or survey plan. (5) Any person who contravenes the provisions of sub-section (2) or sub-section (4) shall be guilty of an offence under this Act. Communication of decision of Minister. 5. The decision of the Minister whether to allow or disallow any application made under section 3 or to exercise the right vested in him by section 7, shall, within two months after the receipt of the application, be communicated in writing to the applicant by the Permanent Secretary. Where for any reason the Permanent Secretary is unable to communicate such decision to the applicant within the aforesaid two months, he shall so inform the applicant and shall specify the period within which such decision will be communicated to him. Certificate of consent. 6. Where on an application made under section 3, the Minister decides to consent to the transfer of ownership of the estate to which the application relates, a certificate of such consent, signed by the Minister, shall be transmitted, to the person who made the application for such consent, by the Permanent Secretary. Where the Minister has determined any conditions to which such consent is to be subject, those conditions shall be stated in such certificate. Eight of pre-emption. 7. Where an application is made under section 3 for the consent of the Minister to transfer the ownership of any estate, the Minister shall have the right in preference to all other persons whomsoever to acquire such estate for and on behalf of the Crown. Acquisition of estates. 8. (1) Where, in the opinion of the Minister, it is in the national interest to acquire any estate, whether such estate is or is not an estate in respect of which an application has been made under section 3, he may by Order (hereinafter referred to as a “vesting Order “) published in the Gazette, vest such estate in the Crown with effect from such date as shall be specified in the Order. (2) A vesting Order shall have the effect of giving the Crown absolute title to any estate specified in the Order with effect from the date specified therein, and free from all encumbrances. Revocation of vesting Order. 9. (1) Notwithstanding that any estate has vested in the Crown by virtue of a vesting Order, the Minister may, at any time before a determination as to compensation is made in respect of that estate under this Act, by a subsequent Order published in the Gazette revoke that vesting Order. (2) Where a vesting Order in respect of any estate is revoked under sub-section (1) the estate to which it relates shall be deemed never to have vested in the Crown by virtue of that vesting Order, and any question which may arise as to any right, title or interest, over that estate shall be determined accordingly. (3) The preceding provisions of this section shall have effect notwithstanding anything in any other provision of this Act or in any other written law. Taking possession of estate vested in the Crown. 10. (1) Any officer specially or generally authorized in that behalf by the Permanent Secretary (hereinafter referred to as the ” authorized officer “) may take possession of any estate vested in the Crown. (2) Any authorized officer shall, by notice given to the person in occupation of any estate vested in the Crown or exhibited in some conspicuous place on or in the vicinity of such estate- (a) inform such person that such authorized officer intends to take possession of such estate for and on behalf of the Crown on such date and at such time and place as shall be specified in the notice ; and (b) require any person interested or his authorized agent to be present on the date and at the time and place so specified, and to allow and assist such authorized officer to take possession of such estate for and on behalf of the Crown. (3) Any notice required to be given to any person under the preceding provisions of this section shall be deemed to be given to him if such notice is sent to him by registered letter through the post. (4) Any person who contravenes any requirement of any notice given to him under this section shall be guilty of an offence under this Act. Prevention of or obstruction to taking possession of an estate for and on behalf of the Crown. 11. (1) Any person who- (a) prevents, obstructs, or resists ; or (b) directly or indirectly causes anyone to prevent, obstruct or resist, any authorized officer from or in taking possession under section 10 of any estate for and on behalf of the Crown shall be guilty of an offence under this Act. (2) Where an authorized officer who is authorized to take possession of any estate for and on behalf of the Crown is unable, or apprehends that he will be unable, to take possession of such estate because of any obstruction or resistance that has been or is likely to be offered, he shall, on his making an application in that behalf to the Magistrate’s Court having jurisdiction over the place where that estate or part thereof is situated, be entitled to an Order of the Court directing the Fiscal to deliver possession of that estate to him for and on behalf of the Crown. (3) Where an Order under sub-section (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 sub-section (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 any step 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 sub-section (2), the Fiscal or any person acting under his direction may use such force as may be necessary to enter the estate to which that Order relates and eject any person in occupation thereof, and to deliver possession of such estate to the person who is authorized to take possession thereof for and on behalf of the Crown. Compensation in respect of estate vested in the Crown. 12. The amount of compensation to be paid under this Act in respect of any estate vested on any date in the Crown shall be such sum as in the opinion of the Chief Valuer constitutes the reasonable value of such estate as on such date. Interest on compensation. 13. Any compensation payable, less any deductions that may be made from such compensation under this Act, 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 of Finance. Date of commencement of accruement of compensation. 14. The compensation payable in respect of any estate shall be considered as accruing due from the date on which that estate was vested in the Crown. Manner and mode of payment of compensation. 15. The manner and mode of payment of compensation shall be determined by the Minister in consultation with the Minister of Finance. Determination of compensation. 16. (1) The Permanent Secretary shall refer to the Chief Valuer the determination of compensation payable in respect of any estate vested in the Crown, and such Valuer shall submit his determination to the Permanent Secretary. (2) The Chief Valuer shall, before making his determination of the compensation payable in respect of any estate vested in the Crown, give the person from whom that estate was acquired as well as the Permanent Secretary, an opportunity to adduce before such Valuer, by himself or by a representative authorized by him in that behalf, evidence with regard to the value of that estate. (3) The Permanent Secretary shall communicate in writing to the person from whom the estate was acquired the determination of the compensation payable in respect of that estate made by the Chief Valuer. (4) The Permanent Secretary shall cause a notice to be published in the Gazette and in at least one Sinhala newspaper, Tamil newspaper and English newspaper, specifying the compensation that he proposes to pay in respect of the estate, being the compensation determined by the Chief Valuer, and inviting any person who had any interest in that estate, immediately before that estate was vested in the Crown and who claims any compensation in respect of that estate to communicate to the Permanent Secretary his claim in writing, stating the nature and basis thereof, before such date as shall be specified in the notice. Payment of compensation. 17. (1) Where no claim to the compensation payable in respect of any estate is received in response to the notice under section 16 from any person other than the person from whom that estate was acquired, the Permanent Secretary shall cause such compensation, less any sum required by or under this Act to be deducted therefrom, to be paid to the person from whom that estate was so acquired. (2) Where any claim to compensation payable in respect of any such estate is received in response to the notice under section 16 from any person other than the person from whom that estate was acquired, then, if every such claimant and the person from whom that estate was so acquired amicably agree in writing as to the persons entitled to the compensation and the apportionment of the compensation among them, the Permanent Secretary shall cause the compensation, less any sum required by or under this Act to be deducted therefrom, to be apportioned and paid to such persons according to such agreement. If there is no such agreement, the Permanent Secretary shall cause the compensation, less any sums required by or under this Act to be deducted therefrom, to be paid to any District Court to be drawn by the persons entitled thereto. Provision for cases where compensation is not accepted, &c. 18. Where any compensation payable to any person under this Act 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. Deductions from compensation. 19. (1) Where a person is entitled to compensation in respect of any estate vested in the Crown, the Permanent Secretary shall pay from the amount of such compensation- (a) to the Commissioner of Inland Revenue, any sum certified under the hand of the Commissioner of Inland Revenue to the Permanent Secretary to be due from such person as tax on income or profits, or as personal tax; and (b) to the Commissioner of Labour, any sum certified under the hand of the Commissioner of Labour to the Permanent Secretary to be due from such person as arrears of salary, provident fund contributions, gratuity or other monetary benefit to any other person whose employment in such estate has been terminated after the date of publication of the vesting Order or who continues to be employed in such estate thereafter. (2) For the purposes of this section, the expression ” compensation ” includes any interest which has accrued due on such compensation. Regulations. 20. (1) The Minister may make regulations for the purpose of giving effect to the principles and provisions of this Act. (2) No regulation made by the Minister shall have effect until it is approved by the House of Representatives and notification of such approval is published in the Gazette. (3) Any person who contravenes the provisions of any regulation made under this Act shall be guilty of an offence under this Act. Offences. 21. Every person who is guilty of an offence under this Act 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. This Act to prevail over other written law. 22. The provisions of this Act 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 Act and such other law, the provisions of this Act shall prevail over such other law. Interpretation. 23. In this Act, unless the context otherwise requires- ” Chief Valuer ” means the Chief Valuer of the Government, and includes any Senior Assistant Valuer, or Assistant Valuer, of the Government Valuation Department; ” estate ” means any land or group of lands- (a) which constitutes a separate and distinct property; (b) which belongs to or is held by one or more persons; and (c) of which an extent of not less than one hundred acres is or has been at any time after the first day of January, 1962, under cultivation or used for any purpose of husbandry; and includes unsold produce, all buildings, fixtures, machinery, implements, vehicles and other things movable and immovable belonging to, and required in the opinion of the Minister for the running of, such estate; ” Permanent Secretary ” includes any Additional Permanent Secretary and any Assistant Secretary; ” person who had an interest “, in relation to any estate vested in the Crown, means a person who, immediately before the date on which such estate was so vested, had an interest in such estate as owner, co-owner, mortgagee, lessee, or otherwise, whether absolutely for himself or in trust for any other person; and the term ” interest ” in relation to any such estate shall be construed accordingly; ” proprietor “, in relation to an estate means the owner, lessee or usufructuary mortgagee or other person lawfully in possession and taking the produce of such estate and, where such owner, lessee, mortgagee or other person is absent from Ceylon, includes any duly accredited agent of such owner, lessee, mortgagee or other person; ” transfer of ownership “, in relation to an estate, means the transfer of ownership of such estate or any portion thereof, whether divided or undivided, by sale, exchange or gift other than a gift by a testamentary disposition, or a lease of such estate or portion thereof, whether divided or undivided, for a period exceeding ten years or any hypothecation of such estate or portion thereof, whether divided or undivided.