NATIONAL HOUSING DEVELOPMENT AUTHORITY

(1) An Authority to be called the National Housing Development Authority (hereinafter referred to as ” the Authority “) is hereby established.

(2) The Authority shall be a body corporate with perpetual succession and a common seal and may sue and be sued in its corporate name.

(3) The head office of the Authority shall be in Colombo.

(4) The Authority may, with the prior approval of the Minister, establish and maintain branch offices.

(1) The Authority shall consist of the following members:

(2) The Minister shall appoint one of the appointed members to be the Chairman of the Authority .

(3) The Authority shall exercise, perform or discharge the powers, duties or functions of the Authority subject to such general or special directions as the Minister may issue from time to time and it shall be the duty of the Authority to comply with such directions.

(4) The provisions of Part HI of this Act shall apply to the members of the Authority.

(a) to directly engage itself in the construction of flats, houses and other living accommodation or buildings;

(b) to formulate schemes to establish housing development projects in order to alleviate the housing shortage;

(c) to cause the clearance of slum and shanty areas and the re-development of such areas;

(d) to promote housing development;

(e) to develop or re-develop land for the carrying out of any of the objects of the Authority;

(f) to make land available to any person for housing development;

(g) to provide financial or other assistance to persons engaged in any activity which is similar to any of the objects of the Authority;

(h) to conduct, promote and co-ordinate activities in relation to all aspects of housing development; and

(i) to do all such other acts as may be necessary or conducive to the attainment of any or all of the above objects.

(a) to prepare and execute proposals, plans and projects for

(b) to manage all lands, flats, houses and other living accommodation and buildings or other property vested in or belonging to the Authority;

(c) to provide loans on such terms and conditions as may be prescribed to enable persons

(d) to conduct research and surveys necessary for the performance of the functions and duties of the Authority;

(e) to establish new housing estates and to encourage self-help housing projects and the provision of amenities for the inhabitants of such estates or projects including transport and other services;

(f) to enter into and perform directly or through Government departments, public corporations, or any agent authorized in that behalf all such contracts as it may consider necessary for the carrying out of any of the objects of the Authority;

(g) to accept gifts, grants, donations or subsidies, whether in cash or otherwise, and to apply them for carrying out of any of its objects ;

(h) to develop any immovable property acquired or held by the Authority;

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

(j) to obtain loans on such terms and conditions as may be approved by the Minister for the purpose of carrying out any of its objects ;

(k) to charge rents for any flat, house, or other living accommodation or any building provided by the Authority;

(l) to charge fees for any services or facilities provided by the Authority;

(m) to undertake any activity which, in the opinion of the Authority, are necessary to achieve any of its objects; and

(n) to do all such acts or things as are incidental to or consequential upon the exercise, performance and discharge of its powers, duties and functions.

(1) Where the Minister certifies that any land, other than State land, should be acquired by Government for the purpose of being made available for the carrying out of any housing object and such certificate is published in the Gazette, that purpose shall be deemed to be a public purpose and that land may be acquired under the Land Acquisition Act, and be made available for that purpose to that Authority, or to any other person by being disposed of under the provisions of this Act.

(2) In the case of any such acquisition where the public notice of the intention to acquire that land or interest therein is published as required by the Land Acquisition Act at any time within a period of three years commencing from the appointed date, notwithstanding anything to the contrary in the Land Acquisition Act, the market value of the land or the interest therein for the purpose of determining the amount of compensation to be paid in respect of that land or the interest therein shall be deemed to be the market value of that land or the interest therein as on July 22, 1977, increased by a reasonable amount on account of improvements, if any, effected to such land, after that date.

(1) Where any immovable property of the State is required to be made or any of its available to the purposes, such purpose shall be deemed to Authority, be a purpose for which a special grant or lease of such property may be made to the Authority under section 6 of the State Lands Ordinance, and accordingly the provisions of that Ordinance shall apply to a special grant or lease of such property to the Authority for such purpose.

(2) Where any movable property of a Government department or any public corporation is required for the purposes of the Authority the Minister may by Order published in the Gazette transfer to and vest in the Authority the possession and use of such movable property.

(3) No order affecting any movable property of any Government department or public corporation shall be made by the Minister under subsection (2) without the consent of the Minister in charge of that department or public corporation.

(1) The Authority may, with the approval of the Minister, dispose by way of sale, lease, rent or rent purchase any land, flat, house or other living accommodation held by the Authority, subject to such terms and conditions as may be determined by the Minister and specified in the instrument of disposition, and in particular, but without prejudice to the generality of the foregoing provisions of this section, a condition to the effect that the disposition effected by such instrument may be cancelled or determined in the event of a failure to comply with any other condition specified in such instrument or in the event of any money due to the Authority under such instrument remaining unpaid for any such period as may be specified therein.

(2) Nothing in the State Lands Ordinance shall affect or be deemed or construed to affect the disposition of any State land held by the Authority for any of the purposes of the Authority.

(1) An appointed member shall, subject to the provisions of sections 13 and 14, hold office for a period of three years from the date of his appointment to such office: Provided that a member appointed in place of a member who dies or resigns or otherwise vacates office, shall, unless he earlier vacates office, hold office for the unexpired part of the term of office of the member whom he succeeds.

(2) Where the Chairman or any other appointed member becomes, by reason of illness, infirmity or absence from Sri Lanka, temporarily unable to discharge the functions of his office, the Minister may appoint any other member to act as Chairman, or any other person to act as in place of such Chairman or member, as the case may be.

(1) The term of office of the Chairman of the Authority shall be the period of his membership of the Authority.

(2) The Chairman may earlier resign his office as Chairman by letter in that behalf addressed to the Minister.

(3) The Minister may, at any time, without assigning a reason therefor, terminate the appointment of the Chairman. ”

(1) The quorum for any meeting of the Authority shall be three members and the Authority may regulate the procedure in regard to the meetings of such Authority and the transaction of business at such meetings.

(2) All questions for decision at any meeting of the Board shall be decided by the vote of the majority of the members present, In case of an equality of votes the member presiding at that meeting shall have a casting vote.

(1) The seal of the Authority shall be in the custody of the Authority.

(2) The seal of the Authority may be altered in such manner as may be determined by the Authority.

(3) The seal of the Authority shall not be affixed to any instrument or document except in the presence of two members of the Authority who shall sign the instrument or document in token of their presence.

(1) The Authority may, with the approval of the Minister, appoint a General Manager, who shall be the chief executive officer.

(2) The Authority may, at any time if it considers necessary to do so, terminate the appointment of the General Manager with the approval of the Minister.

(3) The General Manager shall, subject to the general direction and control of the Chairman, be charged with the direction of the business of the Authority, the organization and execution of the powers, functions and duties of the Authority, and the administrative control of the employees of the Authority.

(4) The General Manager may, with the approval of the Authority, delegate in writing to any other employee of the Authority, such of his powers, functions or duties, as he may, from time to time consider necessary and any employee to whom any such powers, functions or duties are so delegated, shall exercise, discharge or perform them subject to the general- or special directions of the General Manager.

(1) The Authority may appoint such officers and servants as it considers necessary for the efficient discharge of its functions.

(2) The officers and servants appointed under subsection (I) shall be remunerated in such manner and at such rates, and shall be subject to such conditions of service, as may be determined by rules made by the Authority.

(3) At the request of the Authority any officer in the public service may, with the consent of that officer and the Secretary to the Ministry charged with the subject of Public Administration, be temporarily appointed to the staff of the Authority for such period as may be determined by the Authority with like consent, or be permanently appointed to such staff.

(4) Where any officer in the public service is temporarily appointed to the staff of the Authority the provisions of subsection (2) of section 13 of the Transport Board Law shall, mutatis mutandis, apply to and in relation to him.

(5) Where any officer in the public service is permanently appointed to the staff of the Authority, the provisions of subsection (3)of section 13 of the Transport Board Law shall, mutatis mutandis, apply to and in relation to him.

(6) Where the Authority employs any person who has agreed to serve the Government for a specified period, any period of service with the Authority by that person shall be regarded as service to the Government for the purpose of discharging the obligations of such agreement.

(7) At the request of the Authority any member of the Local Government Service or any other officer or servant of any local authority may, with the consent of such member, officer or servant and the Local Government Service Advisory Board or that local authority, as the case may be, be temporarily appointed to the staff of the Authority for such period as may be determined by the Authority with like consent or be permanently appointed to such staff on such terms and conditions including those relating to pension or provident fund rights as may be agreed upon by the Authority and the Local Government Service Advisory Board or the local authority.

(8) Where any person is temporarily appointed to the staff of the Authority in pursuance of subsection (7), such person shall be subject to the same disciplinary control as any other member of such staff.

(1) The Authority shall have its own fund. There shall be credited to the Fund of the Authority

(2) There shall be paid out of the Fund of the Authority all such sums of money required to defray any expenditure incurred by the Authority in the exercise, performance and discharge of its powers, duties and functions.

(3) The initial capital of the Authority shall be fifty million rupees. The amount of the initial capital shall be paid out of the Consolidated Fund in such installments as the Minister in charge of the subject of Finance may in consultation with the Minister determine and such sums shall be credited to the Fund established under subsection (1).

(4) At the request of the Minister, the capital of the Authority may be increased from time to time by such amounts as may be authorized by an Appropriation Act, or by resolution of Parliament, and such amounts shall be given or made available to the Authority by way of grants or by way of loans on such terms and conditions as may be determined by the Minister in charge of the subject of Finance.

(1) The Authority may, with the consent of the Minister, given with the concurrence of the Minister in charge of the subject of Finance, or in accordance with any general authority given by the Minister with like concurrence, borrow temporarily, by way of overdraft or otherwise, such sums as the Authority may require for meeting the obligations of the Authority or discharging its duties and functions under this Act:

Provided that the aggregate of the amounts outstanding in respect of any temporary loans raised by the Authority under this subsection shall not at any time exceed such sum as may be determined by the Minister in consultation with the Minister in charge of the subject of Finance.

(2) The Authority may, with the consent of the Minister given with the concurrence of the Minister in charge of the subject of Finance, borrow money, otherwise than by way of temporary loan under subsection (1) by the issue of debentures and the debentures so created and issued in this Act are referred to as ” National Housing Development Authority Debentures “.

(3) National Housing Development Authority Debentures shall be issued, transferred, dealt with, redeemed and cancelled in accordance with such terms and conditions as may be determined by the Authority with the approval of the Minister given with the concurrence of the Minister in charge of the subject of Finance.

(1) The Minister in charge of the subject of Finance shall guarantee the repayment of the principal of, and the payment of the interest on, any sum due on debentures issued under this Act.

(2) Any sum required for the fulfillment of a guarantee provided under subsection (1) may, with the prior approval of Parliament, be paid out of the Consolidated Fund.

(3) Any sum paid out of the Consolidated Fund in fulfillment of a guarantee provided under subsection (1) shall be repaid, together with interest thereon, at such rate as the Minister in charge of the subject of Finance may determine with the concurrence of the Minister, by the Authority, in such manner and over such period as the Minister in charge of the subject of Finance may with such concurrence determine.

(4) Immediately after a guarantee is given under subsection (1) the Minister in charge of the subject of Finance shall lay a statement of the guarantee before Parliament.

(5) Where any sum is paid out of the Consolidated Fund in fulfillment of a guarantee provided under subsection (I), the Minister in charge of the subject of Finance shall forthwith lay before Parliament a statement that such sum has been so paid.

(1) The provisions of the Public Corporations (Financial Control) Act shall, mutatis mutandis, apply to the financial control of the Authority.

(2) The financial year of the Authority shall be the calendar year.

(1) At any time after the grant of a loan is approved by the Authority and before the entire amount of the loan is given to the applicant therefor, the Authority may, if owing to material misstatements by the borrower or misapprehension of the actual facts by the Authority the loan was approved in circumstances in which it would not have been granted if at the time facts had been known, without assigning any reason, cancel the grant of the loan or reduce the amount of the loan or modify the conditions applicable to the loan or withhold payment of the whole or any part of the loan for such period as the Authority may determine.

(2) Where the Authority cancels under subsection (1) the grant of a loan after a part of the loan has been given to the applicant therefor, such part shall be deemed to be the full amount of the loan granted to him and such Authority may, by written order, direct such applicant to repay that loan and the interest due thereon within the time specified in such order. Where such order is not complied with within the time allowed therefor, default shall be deemed to be made in respect of the whole of the unpaid portion of the loan and the interest due thereon and where that loan was granted on the mortgage of any land, the provisions of sections 42 to 61 shall apply to and in relation to that loan.

(1) The Authority may at any time, if it is satisfied that the property given as security has depreciated in value to such an extent as to endanger the safety of the loan or that the title of the borrower is such that it ought not to have been accepted as adequate, without assigning reason therefor, by written order direct that, within the time specified in the order

(2) Where an order issued under subsection (1) in respect of a loan is not complied with within the time allowed therefor by the order, default shall be deemed to have been made in respect of the whole of the unpaid portion of that loan and the interest due thereon up to date, and where that loan was granted on the mortgage of any land, the provisions of sections 42 to 61 shall apply to and in relation to that loan.

(1) The Authority may, in lieu of the whole or any part of any security which the Authority has already accepted for any loan, accept new security if the new security, either alone or together with any portion of the original security which is to remain, is sufficient for a new loan of an amount equal to the total of the principal and interest still outstanding on account of the original loan.

(2) Where a person to whom a loan has been granted by the Authority on the security of a land mortgaged to the Authority repays a part of that loan and the Authority is satisfied that a portion (hereafter in this subsection referred to as an ” adequate portion'”) of that security is sufficient for the purpose of ensuring the recovery of the balance due on that loan by way of principal and interest, the Authority may release and discharge from the mortgage such portion of that security as is in excess of the adequate portion.

(3) Where any person to whom a loan has been granted by the Authority on the security of a land mortgaged to the Authority has transferred or transfers a portion of that land to any other person, the Authority may, upon a request made therefor by the transferee, release and discharge from the mortgage that portion of that land if

(4) For the purposes of this Act the amount of the loan which is so apportioned to each such person shall be deemed to be the amount of a loan granted to each such person by the Authority and accordingly the provisions of this Act and of any regulation made thereunder shall apply to and in respect of the amount of such loan and the security furnished therefor.

(1) Where on the security of any property a loan is granted for the construction, completion, renovation or repair of any building or buildings such property, and where the building is to be constructed, completed, renovated or repaired is on any other property, such other property shall not be sold, gifted, leased or otherwise alienated, so long as such work is incomplete, except with the written permission of the General Manager and in accordance with such conditions as he may impose.

(2) Notwithstanding anything to the contrary in any other written law, any alienation or disposition of any property to which subsection (1) applies shall, if it is in contravention of that subsection, be invalid, and have no force or effect in law.

(a) by installments specified by the Authority and paid at intervals so specified; or

(b) in any other manner so specified.

(a) to whom a loan is granted by the Authority; or

(b) who obtains probate of the will or letters of administration to the estate of a person to whom a loan has been granted by the Authority; or

(c) who, under section 47, is appointed to represent the estate of a deceased borrower; or

(d) to whom any right, title or interest in any land mortgaged to the Authority as security for a loan granted by that Authority, or in any other description of security for such a loan, passes whether by voluntary conveyance or by operation of law, shall notify in writing to the Authority an address to which all notices to him may be sent.

(1) Every mortgage of land executed in favour of the Authority as security for any loan shall be substantially in a form approved by the Authority.

(2) Any such mortgage as is referred to in subsection (1) may include a covenant that a higher rate of interest than that on which the loan was granted shall be paid, if the borrower fails or neglects to make any payment due on account of interest, principal or otherwise under the mortgage, in full and on the due date.

(1) Any person authorized by order of the Authority under section 44 in respect of any land shall be entitled generally to take action in terms of the order and in particular

(2) Any person authorized by the order of the Authority under section 44 in respect of any land shall

(3) The Authority shall, when all sums due to the Authority under the mortgage have been fully paid, surrender possession of the mortgaged land to the mortgagor and return to him any balance remaining out of the income from such land.

(1) Save as otherwise provided in subsection (2), the provisions of sections 44 and 46 shall apply to the case of any default, notwithstanding that the borrower may have died or that any right, title or interest in the land mortgaged by the borrower as security for the loan may have passed by voluntary conveyance or by operation of law to any other person.

(2) Where the borrower is dead and probate of his will or letters of administration to his estate have not been issued

(1) Notice of every’ order under section 46 authorizing the sale of any land shall be published in the Sinhala language in the Gazette and in a daily newspaper, and copies of such notice shall be served on the borrower, if he is alive, and on every person who has, in respect of that land, notified his address under section 37.

(2) Where the language of any person on whom a copy of such notice is required to be served is the Tamil language, or the English language, then in addition to a copy of such notice, a translation thereof in the language of that person shall be served on him,

(a) served on the borrower, if he is alive, and on every person on whom notice of the order authorizing the sale is required to be served under section 48;

(b) posted on or near the land which is to be sold ; and

(c) affixed to the walls of the Kachcheri and the several District Courts, Primary Courts and Magistrates* Courts within the jurisdiction of which the land is situated.

(1) If the amount of the whole of the unpaid portion of the loan together with all interest due thereon according to the terms of the mortgage, and of the moneys and costs, if any, recoverable by the Authority under section 54 is tendered to the Authority by the borrower or a person authorized by the borrower in that behalf before the date fixed for the sale of the land mortgaged to the Authority as security for the loans, that land shall not be sold and no further steps shall be taken in pursuance of the order under section 46 for the sale of that land.

(2) If the amount of the installment or other payment in respect of which default has been made, together with any interest due thereon according to the terms of the mortgage, and of the moneys and costs, if any recoverable by the Authority under section 54 is tendered to the Authority at any time by the borrower or by a person authorized by the borrower in that behalf before the date fixed for the sale of the land mortgaged to the Authority as security for the loan, the Authority may, in the discretion of the Authority, direct that such land shall not be sold and that no further steps shall be taken in pursuance of the order under section 46 for the sale of such land.

(1) In addition to the amount due on any loan, the Authority may recover . from the borrower or any person acting on his behalf

(2) Where the General Manager on behalf of the Authority purchases the mortgaged land, he shall pay out of the Fund of the Authority the costs referred to in paragraphs (a) and (b) of subsection (I) and he shall, after such moneys and costs are recovered from the borrower under that subsection, credit to the Fund the amount so recovered.

(1) Where the mortgaged land is sold the General Manager on behalf of the Authority shall sign a certificate of sale and thereupon the right, title and interest of the borrower to and in the land shall vest in the purchaser; and thereafter it shall not be competent for any person claiming through or under any disposition whatsoever of the right, title or interest of the borrower to and in the land, made or registered after the date of the mortgage of the land to the Authority, in any court to move to invalidate the sale for any cause whatsoever or to maintain any right, title or interest to or in the land as against the purchaser.

(2) A certificate signed by the General Manager on behalf of the Authority under subsection (1) shall be conclusive proof, with respect to the sale of any land, that all the provisions of this Part relating to the sale of the land have been complied with.

(3) The certificate of sale shall be in such form as may be approved by the Authority.

(4) Every certificate of sale issued under this section shall be liable to stamp duty and charges as if it were a conveyance of immovable property and to any registration and other charges authorized by law, all of which shall be payable by the purchaser:

Provided, however, that where the General Manager on behalf of the Authority is the purchaser, the certificate of sale issued to him shall be liable to stamp duty and charges as if it were a conveyance of immovable property and to any registration and other charges authorized by law, all of which shall be payable by the Authority.

(a) of invalidating the sale for any cause whatsoever; or

(b) of maintaining any right, title or interest to or in the land as against the purchaser.

(1) The purchaser of any land sold in pursuance of the preceding provisions of this Part shall, upon application made to the District Court of Colombo or the District Court having jurisdiction over the place where that land is situated, and upon production of a certified copy of the certificate of sale issued in respect of that land under section 56 be entitled to obtain an order for delivery of vacant possession of that land.

(2) Every application under subsection (1) shall be made by way of petition and affidavit to which shall be annexed a certified copy of the certificate of sale issued under section 56 and for the purpose of such application and on all proceedings held in consequence of such application made under that subsection by any person other than any person for and on behalf of the Authority, stamp duties and other charges shall be payable at the respective rates at which such duties and charges are payable under any written law for the time being in force.

(3) Upon the presentation of the application referred to in subsection (1) the District Court shall forthwith order the delivery of possession of the property to the purchaser and shall issue a writ of possession to the Fiscal of the Court requiring and authorizing him before a date specified in the writ, to deliver possession of the premises to the purchaser or to any other person appointed by him for the purpose and to eject the occupier and his dependants if any from the premises and every other person occupying such land or premises or any portion thereof. In the event the Fiscal is unable to deliver possession within the date specified by the Court, the Court shall have power to reissue the writ extending the period of execution, of such writ. In executing the writ issued to the Fiscal, the Fiscal or the police officer or any person authorized by the Fiscal or the police officer may use such force as may be necessary to enter the premises in accordance with the directions of the District Court which issued the order.

(4) Where the purchaser files an application under subsection (1) he shall at the same time issue to the person named as respondent in the application a notification thereof by personal service, registered post or telegraph, but the non-receipt of such notification by that person shall not invalidate proceedings under this section.

(1) Where the land sold is purchased by the Authority and the sale is not cancelled under section 59, the Authority may at any time re-sell the land and transfer to the purchaser by endorsement on such copy of the certificate of sale as is certified by the Authority to be a true copy, all the right, title and interest to or in that land acquired by the Authority.

(2) The provisions of subsection (4) of section 56 shall apply to an endorsement made under subsection (1) of this section in like manner as they apply to a certificate of sale.

(3) An endorsement made under subsection (1) shall, when it is registered in the office of the Registrar of Lands, vest in the purchaser specified in that endorsement such right, title and interest as are so specified.

(1) This Part shall apply to every house, flat or any other building hereinafter referred to as the building ” provided by the Authority for occupation by any person, whether such occupation is upon the payment of any rent or otherwise-

(2) Where a building is provided by the Authority for occupation by any person, then with reference to that building, the expression ” landlord ” in this Part means the General Manager, and the expression ” occupier ” in this Part means that person.

(1) The occupier of any building to which this Part applies, and his dependants and every other person occupying such building or any portion thereof shall not be entitled to occupy such building or portion thereof after the date of the lawful termination of the occupation of such building by the landlord shall on that date vacate the building, deliver possession thereof to his landlord, and depart from the land or premises in which such building is situated together with his dependants and every other person occupying such land or premises or any portion thereof.

(2) Where any building to which this Part applies is provided by the landlord for occupation by any person in the employment of that landlord that person’s occupation of such building shall be deemed, for the purposes of this Part, to be lawfully terminated on the date of the lawful termination of the employment of that person.

(3) Where in any case referred to in subsection (2) the employment of the occupier is terminated without notice, the reference in that subsection to the date of the lawful termination of his employment shall be deemed to be a reference to the date fourteen days after the actual date of termination.

(1) In any case where the occupier of any building to which this Part applies fails to comply with the provisions of subsection (I) of section 63, it shall be lawful for the landlord to file, in the Primary Court of the division in which the building is situated, an application praying for the recovery of possession of the building, and for the ejectment from the land or premises on which the building is situated of the occupier, his dependants and every other person occupying such land or premises or any portion thereof; and every such application shall be supported by an affidavit setting forth the time and manner of the termination of the occupation of the occupier.

(2) On receipt of an application under subsection (1), the court shall cause to be served on the occupier a copy of the application and affidavit and an order nisi requiring him

(3) An order nisi under subsection (2) shall be deemed to have been served on the occupier if it is delivered to him by the Fiscal or by any person authorized by the Fiscal, or where it cannot be so delivered, if it is pasted by the Fiscal, or person authorized as aforesaid on some conspicuous part of the building to which the order relates.

(1) If any occupier upon whom an order nisi is served under this Part appears before the court on the date specified in the order and, by affidavit or by statement on oath or affirmation, raises any defence, which in the opinion of the court necessitates an adjournment of the hearing, the court shall immediately settle and record the issue or issues raised and shall, having regard to the circumstances of the case, appoint as early as possible for the hearing of evidence; and in such case the Registrar of the court shall thereupon issue a summons to every such witness as may be required by the parties commanding his attendance at the time and place specified in the summons.

(2) Where any date is appointed under subsection (1) for the hearing of any case, the hearing shall not again be adjourned for any later date(a) unless all the parties to the case consent to such adjournment; or (b) unless the court is satisfied, upon evidence furnished on oath or affirmation or by affidavit, that such adjournment is necessary by reason of the absence, otherwise than by collusion, of a witness who knows and is able to prove facts material to the case.

(3) On the date appointed under subsection (1) for the hearing of the case or on such other date, if any, to which such hearing may be adjourned under subsection (2), the court shall hear and determine the issues raised and give judgment thereon, notwithstanding anything to the contrary in any written law.

(1) If any occupier upon whom an order nisi has been served under this Part, does not appear on the date specified in such order or on such other date, if any, to which the hearing may be adjourned under this Part or, having appeared fails to show good and valid cause why he should not deliver possession as required by section 63 of the building specified in the order and depart from the land or premises on which it is situated together with his dependants and every other person occupying such land or premises or any portion thereof the order nisi shall be made absolute; and the court shall forthwith issue, and if need be reissue a writ of possession to the Fiscal of the district requiring and authorizing him before a date specified in the writ, not earlier than two calendar months and not later than two calendar months from the date of the issue of such writ, to deliver possession of the building to the landlord or to any other person appointed by the landlord for the purpose and to eject from the land or premises on which the building is situated the occupier, his dependants and every other person occupying such land or premises or any portion thereof: Provided, however, that where the court is satisfied that it is expedient for any reasonable cause as hereinafter defined, that the issue of the writ should be postponed, the court may direct that such writ shall not be issued unless the occupier fails to deliver possession of the building and to depart from such land or premises together with his dependants and every other person occupying such land or premises or any portion thereof before a date specified in that behalf by the court.

(2) In the preceding proviso, ” reasonable cause” means

(1) Where the General Manager has reason to believe that a person is in unauthorised possession or occupation of any building or portion [hereof, he may cause a notice to be served on such person requiring him to vacate such building or portion thereof with his dependants, if any, on or before the date specified in such notice and to deliver vacant possession thereof to the General Manager or any person authorized by him in that behalf and specified in the notice or where the General Manager considers such service to be inexpedient or impracticable, he shall cause such notice to be exhibited in a conspicuous place in or upon that building, requiring such person to vacate such building or portion thereof on or before the date specified in the notice and to deliver vacant possession thereof with his dependants, if any, to the General Manager or any person authorized by him in that behalf and specified in the notice. Every such notice shall be substantially in Form A specified in the Second Schedule and is hereinafter in this Part referred to as a “Notice to quit”.

(2) For the purposes of subsection (1) of this section the date specified in the Notice to quit shall be a dale not later than sixty days from the date of issue or exhibition of such notice.

(3) A Notice required to be served on any person shall be sent by registered post addressed to that person and a Notice to quit as such, shall be deemed to have been served on such person at the time when the letter containing such notice has been delivered to the address to which it is sent.

(1) Where any person who is in unauthorised possession or occupation of any building or portion thereof fails to comply with the Notice to quit served or exhibited as provided by section 69B, the General Manager may make an application substantially in form B set out in the Second Schedule to this Act. to the Magistrate’s Court within whose jurisdiction such building or any portion thereof is situated, setting out the following facts, namely :”

(2) Every application under subsection (I) shall be supported by an affidavit substantially in the Form C set out in the Second Schedule to this Act verifying the facts set forth in such application and shall be accompanied by a copy of the Notice to quit.

(3) every application referred to in subsection (I) supported by the affidavit and copy of the Notice to quit referred to in subsection (2) is hereinafter in this Part referred to as an “application for ejectment”.

(4) Notwithstanding anything in the Stamp Duty Act, No. 43 of 1982 no stamp duty shall be payable in respect of any application for ejectment.

(1) Upon receipt of the application made under section 69D, the Magistrate shall forthwith issue summons together with a copy of the application on the person named in the application to appear and show cause on the date specified in such summons (being a date not later than two weeks from the date of issue of such summons) why such person and his dependants, if any, should not be ejected from the building or any portion thereof as prayed for in the application for ejectment.

(2) If on the date specified in the summons issued under subsection (i) the person on whom such summons was issued fails to appear or informs the Court that he has no cause to show against the order for ejectment, the Court shall forthwith issue an order directing such person and his dependants, if any, to be ejected forthwith from the building or any portion thereof.

(3) If a person on whom summons has been served under subsection (1) appears on the date specified in such summons and states that he has cause to show against the issue of an order for ejectment, the Magistrate’s Court may proceed forthwith to hear and determine the matter or may set aside the case for an inquiry on a later date.

(4) Where any application for ejectment has been made to a Magistrate’s Court under section 69D, the Magistrate shall give priority over all other business of that Court, to the hearing and disposal of such application, except when circumstances render it necessary for such other business to be disposed of earlier.

(5) At such inquiry the person on whom summons under subsection (1) has been served shall not be entitled to contest any of the matters staled in the application under section 69D except that such person may establish mat he is in possession or occupation of the building or any portion thereof upon a valid permit or under a valid agreement entered into in writing with the Authority or any company of which the controlling shares are held by the Authority by itself or together with one or more public corporations and that such permit or such valid agreement in writing is and not revoked or otherwise rendered invalid.

(6) it shall not be competent to the Magistrate’s Court to call for any evidence from the General Manager in support of the application made under section 69D.

(7) If alter inquiry the Magistrate is not satisfied that the person showing cause is entitled to the possession or occupation of the building or any portion thereof he shall make an order directing such person and his dependants, if” any, in occupation of such building or portion to be ejected forthwith from such building or portion thereof.

(8) Notwithstanding anything contained in the proceeding provisions where the Magistrate is of opinion that, having regard to the manner in which the person on whom summons under subsection (1) was served entered into occupation of the building or portion thereof, it would be unjust to order his ejectment therefrom, the Magistrate may require such person and the Authority to enter into an agreement on such reasonable terms as may be determined by the Magistrate, with respect to such building or portion thereof, within a period of six months from the date of such requirement:

Provided however where such person on whom summons under subsection (1) was served fails to enter into an agreement within the period of six months from the date of such requirement the provisions contained in this Part shall apply mutatis mutandis.

(9) No appeal shall lie against any order of ejectment made by a Magistrate under subsection (2) or subsection (7).

(10) Where any person fails to comply with an order made under subsection (2) or subsection (7) the Magistrate shall on the application of the General Manager forthwith issue, and if need be re-issue a writ of possession to the Fiscal, of the Court requiring and authorizing such Fiscal before a date specified in the writ not being ,a date earlier than three and not later than seven clear days from the date of issue of such writ, to deliver possession of such budding or portion thereof to the General Manager or any other person authorized by him in that behalf, specified in Notice to quit relating to such building. Such writ shall be sufficient authority for the said Fiscal or any polite officer authorized by Court in that behalf, to enter such building with such assistants as the Fiscal or police officer shall deem necessary and to eject the person in possession or occupation and his dependants or occupants, if any from such building or portion thereof.

(11) Notwithstanding anything in any other law, the issue or re-issue of a writ of possession under subsection (10) shall not be stayed in any manner whatsoever by reason of any steps taken or proposed to be taken in any Court with a view to questioning the issue or re-issue of such writ of possession or the Notice to quit in pursuance of which such writ of possession was issued or re-issued.

(12) Nothing in this Part shall be read and construed as precluding any person who claims to have been unlawfully ejected from any- building or portion thereof under this section form instituting an action in any Court, for damages or other relief in respect of such ejectment.

(1) Upon production of a certificate issued by the General Manager under this Act that a sum of money was due to the Authority on a specified date from a specified person, before a District Court having jurisdiction in the district in which that person resides or in which any property movable or immovable owned by that person is situated, the Court shall issue an injunction restraining that person from the place where such property is kept or from causing or permitting the removal therefrom of such property and shall direct a writ of execution to issue to the Fiscal authorizing and requiring him to seize and sell all or any of the property movable and immovable of that person or such part thereof as may be necessary for the recovery of that sum ; and the provisions of sections 226 and 297 of the Civil Procedure Code shall, mutatis mutandis, apply to such a seizure and sale.

(2) Where the General Manager issues a certificate referred to in subsection (1), he shall at the same time issue to the person specified in the certificate a notification thereof by personal service, registered post, or telegraph, but the non-receipt of such notification by that person shall not invalidate proceedings under this section.

(3) Nothing in the preceding provisions of this section shall affect the right of the Authority or the General Manager to recover moneys due to the Authority under this Act in any other manner or by any other procedure applicable in that behalf.

(1) Any person who is liable to pay a sum under this Act to the Authority if he is an employee of the Government of Sri Lanka, or the Local Government Service, Judicial Service, or of any mercantile establishment, corporate or unincorporate body, shall be liable to have any such sum recovered or deducted out remuneration from employment.

(2) The General Manager shall, if he is of the opinion that the method of recovery referred to in subsection (1) is a satisfactory method of recovery in the case of any person, direct in writing to the employer of that person to deduct and pay to the Authority out of the remuneration payable to that person such amount in such manner, and at such intervals as may be specified in the directions.

(3) Every employer who receives a direction under subsection (2) shall forthwith comply with that direction.

(4) Where such a deduction from remuneration out of such employment is made, the employer shall within a reasonable time, but not exceeding fourteen days from the date of recovery, issue a receipt to the person from whom the recovery has been made acknowledging receipt of such money or recovery of such dues and shall within the same period inform the General Manager from whom he has received such direction of that fact.

(5) Where any person in respect of whom a direction under subsection (2) is in force is about to leave, or leaves, the employment of his employer, the employer shall forthwith(a) if the remuneration due to such person exceeds the sum liable to be paid under such direction to the Authority deduct that sum from such remuneration and pay the sum so deducted to the Authority, and (b) if such remuneration does not exceed the sum to be recovered, pay the amount of such remuneration to the Authority.

(6) Where for any reason an employer of any person is unable to comply with a direction given under subsection (2), he shall inform the General Manager forthwith in writing of his inability to do so and the reason therefor.

(7) Every employer who contravenes any of the preceding provisions of this section shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one thousand rupees or to imprisonment of either description for a period not exceeding one year or to both such fine and such imprisonment.

(8) Where any offence under the preceding provisions of this section is committed by a body of persons, then(a) if the body of persons is a body corporate, every director and officer of that body corporate; and (b) if the body of persons is a firm, every partner of that firm, shall be deemed to be guilty of such offence: Provided that no such director, officer or partner shall be deemed to be guilty of such offence if he proves that such offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(9) No prosecution for an offence under this section shall be instituted except by or with the sanction of the Authority.

(10) Nothing in the preceding provisions of this section shall affect, or be deemed or construed to affect, the rights of the General Manager to recover in any other manner or by any other procedure applicable in that behalf, any sum which is liable to be paid to the Authority under this Act and in respect of which he has given a direction under subsection (2).

(a)assets (including immovable property) vested in the Department of National Housing on the day immediately preceding the appointed date; and

(b)contracts and agreements entered into, by or with, the Department of National Housing and subsisting on the clay immediately preceding the appointed date, as are specified in an Order made by the Minister and published in the Gazette, shall be transferred to and vest in, the Authority with effect from the appointed date.”.

(1) Every officer or servant of the Authority shall, before, on or after entering upon his duties under this Act, sign a declaration pledging himself to observe strict secrecy respecting all transactions of the Authority or the General Manager and all matters relating to such transactions, and shall, by such declaration, pledge himself not to reveal any matter which may come to his knowledge in the discharge of his duties except-

(2) Every officer or servant of the Authority shall decline to answer any question concerning the business of the Authority if he cannot answer the question without infringing his pledge of secrecy under subsection (1).

(3) Every officer or servant who fails or refuses to sign the declaration, or to observe the pledge, referred to in subsection (I) shall be guilty of an offence and shall, on conviction after summary inquiry before a Magistrate, be liable to a fine not exceeding five hundred rupees or to imprisonment of either description for a period not exceeding six months or to both such fine and imprisonment.

(1) The Minister may, from time to time, give the Authority general or special directions as to the exercise, discharge and performance of its powers, functions and duties under this Act and such directions shall be carried out by the Authority.

(2) The Minister may, from time to time, direct in writing the Authority to furnish him such information with respect to the property, business and activities of the Authority, as he may require and the Authority shall carry out every such direction.

(1) The Minister may make regulations for the purpose of carrying out or giving effect to the principles and provisions of this Act.

(2) In particular and without prejudice to the generality of the powers conferred by subsection (1), the Minister may make regulations in respect of all or any of the following matters:

(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 on such later date as may be specified in the regulation.

(4) Every regulation shall as soon as convenient after publication in the Gazette be brought before Parliament for approval. Any regulation which is not so approved shall be deemed to be rescinded from the date of its disapproval but without prejudice to anything previously done thereunder.

(5) Notification of the date on which any regulation made by the Minister is deemed to be rescinded shall be published in the Gazette.

(1) No suit or prosecution shall lie

(2) Any expense incurred by the Authority in any suit or prosecution brought by or against the Authority before any court shall be paid out of the funds of the Authority, and any costs paid to, or recovered by, the Authority in any such suit or prosecution shall be credited to the Fund of the Authority.

(3) Any expense incurred by any such person as is referred to in paragraph (A) of subsection (1) in any suit or prosecution brought against him before any court in respect of any act which is done or is purported to be done by him under this Act or on the direction of the Authority shall, if the court holds that such act was done in good faith, be paid out of the Fund of the Authority, unless such expense is recovered by him in such suit or prosecution.

(1) The Authority may make rules in respect of all or any matters for which are authorized or required by this Act to be made.

(2) No rule made by the Authority under this Act shall have effect until it has been approved by the Minister.

(3) Without prejudice to the generality of the powers conferred by subsection (1), the Authority may make rules in respect of all or any of the following matters :