NATIONAL HOUSING



NATIONAL HOUSING
AN ACT TO MAKE PROVISION FOR THE ESTABLISHMENT OF A NATIONAL HOUSING FUND, FOR THE PROMOTION OF HOUSING AND BUILDING DEVELOPMENT BY THE ESTABLISHMENT OF BUILDING SOCIETIES AND BY THE DECLARATION OF BODIES OF PERSONS AS HOUSING BODIES AND HOUSING COMPANIES, FOR THE GRANT OF ASSISTANCE BY GOVERNMENT FOR SUCH DEVELOPMENT, AND FOR MATTERS CONNECTED THEREWITH.
Act Nos,
37 of 1954
22 of 1955
30 of 1955
[6th August
, 1954
]
Short title.

1. This Act may be cited as the National Housing Act.

Housing objects.

2. Each of the objects specified hereunder is hereby declared to be a housing object for the purposes of this Act:-

(a) the construction of buildings for residential purposes and for any other purpose connected with or incidental to any of the objects hereinafter specified;

(b) the manufacture, importation or supply of materials required for the construction of such buildings;

(c) the provision of roads, water, electricity, gas, and sewerage ;

(d) the administration, management or control of buildings and building schemes;

(e) the provision of amenities for the inhabitants of any area in which any housing scheme has been carried out including transport and other services;

(f) any other prescribed object;

(g) any object reasonably connected with or ancillary to any of the objects specified in paragraphs (a) to (f) of this section;

(h) the development of land for the carrying out of any of the objects hereinbefore specified; and

(i) the grant of assistance for the purpose of enabling the carrying out of any of the objects hereinbefore specified by the lending of money in any manner whatsoever or by the undertaking of guarantees or by promoting, effecting, insuring, guaranteeing, underwriting, participating in the managing and carrying out of any issue, public or private, of Government or other loans or of shares, stock, debentures or debenture stock of any body corporate and by the lending of money for the purpose of any such issue.

Housing powers

3. Each of the powers specified hereunder is hereby declared to be a housing power for the purposes of this Act:-

(a) the power to acquire, or to receive by way of gift or otherwise, any immovable or movable property and to hold, manage, sell, surrender, exchange, lease or otherwise dispose of such property, for the purpose of carrying out any housing object;

(b) the power to borrow money for that purpose;

(c) the power to charge rent or fees for any buildings or any services provided by the carrying out of any housing object; and

(d) the power to enter into such contracts and to make such arrangements or to do all such acts and things as may be necessary or expedient for the purpose of carrying out any housing object,

PART I
NATIONAL HOUSING FUND
Establishment of National Housing Fund.

4. A fund to be called the National Housing Fund shall be established for the purposes of this Act.

Administration and accounts of National Housing Fund.

5.

(1) The Commissioner shall administer the National Housing Fund. All payments out of the fund shall be made by the Commissioner.

(2) The accounts of the National Housing Fund shall be audited annually by the Auditor-General. The accounts for each year together with a report of the Auditor-General thereon shall be laid before Parliament.

Loans for purposes of National Housing Fund.

6.

(1) The Minister may from time to time, under the authority of a resolution of Parliament, raise a loan not exceeding such sum as may be specified in the resolution for the purposes of the National Housing Fund. Such loan shall be raised in such manner and on such terms as may be prescribed.

(2) All sums raised by way of loan by the Minister shall be credited to the National Housing Fund and all sums due as principal and interest on such loans shall be a charge on that fund.

(3) No stamp duty shall be payable in respect of any debenture issued for the purpose of any loan raised by the Minister under subsection (1) or in respect of any instrument of transfer of any such debenture.

Payments into and out of the National Housing Fund.

7.

(1) There shall be paid into the National Housing Fund-

(a) all such sums of money as may have been, prior to the appointed date, voted by Parliament, or by resolution of the House of Representatives, for the Ministry for the purposes of housing;

(b) all such sums of money as may, on or after that date, from time to time be voted by Parliament, or by resolution of the House of Representatives, for the purposes of the fund;

(c) all such other sums of money, deposits, dividends and profits as are required or stated by this Act to be credited or forfeited to that fund.

(2) There shall be paid out of the National Housing Fund-

(a) all loans granted by the Commissioner under this Act;

(b) all payments, expenses, costs and other sums which are declared by this Act to be a charge on that fund; and

(c) all such sums as are authorized to be so paid out by the Minister.

PART II
ADMINISTRATIVE ARRANGEMENTS
Appointment of Commissioner for National Housing

8.

(1) There shall be appointed, by name or by office, a person to be or to act as the Commissioner for National Housing.

(2) In the exercise, discharge or performance of the powers, functions or duties assigned to or imposed on him under this Act, the Commissioner shall be subject to the general or special directions of the Minister.

Appointment of Deputy Commissioners and Assistant Commissioners for National Housing and staff.


[ 3, 30 of 1955]

9.

(1) There shall be appointed-

(a) such number of persons, by name or by office, to be or to act as Deputy Commissioners for National Housing as may be deemed necessary for the purposes of this Act;

(b) such number of persons, by name or by office, to be or to act as Assistant Commissioners for National Housing as may be deemed so necessary; and

(c) such number of other officers and servants as may be deemed so necessary.


[ 3, 30 of 1955]

(2) In the exercise, discharge or performance of the powers, functions or duties assigned to or imposed on him under this Act, a Deputy Commissioner or an Assistant Commissioner shall be subject to the general or special directions of the Commissioner.

PART III
BUILDING SOCIETIES
Formation of building societies.

10. Any two or more persons associated solely for the purpose of establishing society for the raising by the subscriptions of the members a stock or fund for making advances to members for the carrying out of any housing object referred to in paragraphs (a) to (h) of section 2 may-

(1) by subscribing their names to an instrument of association approved by the Commissioner; and

(2) by registering such instrument with the Commissioner,

Approval of instrument of association of a building society.


[ 4, 30 of 1955]

11. The Commissioner may in his discretion approve or refuse to approve of the instrument of association of any building society. The decision of the Commissioner on an application for the Commissioner’s approval of an instrument of association of a building society shall, if an address is specified in the application, be notified in writing to the applicant at that address.

Requirements of instrument of association of a building society.

12.

(I) The instrument of association of a building society must state-

(a) the name of the society, with ” Limited as the last word of the name;

(b) the object of the society;

(c) the powers of the society for the purpose of carrying out its object;

(d) that the liability of its members is limited;

(e) the extent to which the liability of its members is so limited;

(f) the manner in which, and the terms upon which, the stock or fund of the society is to be raised ; and

(g) the address of the principal office of the society.

(2) The instrument of association of a building society must, if the society is to be terminated or dissolved on a particular date or in particular circumstances, state that date or those circumstances and the manner in which the society is to be so terminated or dissolved.

(3) The instrument of association of a building society shall make provision-

(a) in respect of all matters for which provision is required to be so made by regulations which are hereby authorized to be made for that purpose under this Act; and

(b) in respect of all such other matters as the Commissioner may deem necessary or expedient for the purpose of enabling it to function as a building society and to carry out its objects and to exercise its powers.

(4) The instrument of association of a building society shall make provision for the management of the business of the society by a board of directors.

(5) The powers of a building society as stated in its instrument of association may include the power to hold land and mortgages over land, to make advances to members out of the stock or fund of the society and to borrow money, and such other powers as may be necessary for the purpose of carrying out its object.

Registration of instrument of association.

13.

(1) The instrument of association of a building society shall, after it has been approved by the Commissioner, be delivered to the Commissioner who shall retain and register such instrument upon payment of the prescribed fee.

(2) All sums paid as fees under subsection (1) shall be credited to the National Housing Fund-

Effect of registration.

14.

(1) On the registration of the instrument of association of a building society, the Commissioner shall certify under his hand that the building society is incorporated and that the society is limited.

(2) From the date of incorporation mentioned in the certificate of incorporation, the subscribers of the instrument of association together with such other persons as may from time to time become members of the building society shall be a body corporate by the name contained in such instrument by which it may sue or be sued, capable forthwith of exercising, discharging and performing all the powers, functions and duties assigned to or imposed on the society by such instrument or by or under this Act, and having perpetual succession (except as otherwise provided in such instrument) and a common seal.

(3) The instrument of association shall, when registered, bind the building society and the members thereof to the same extent as if they had been signed by each member, and contained covenants on the part of each member to observe all the provisions of the instrument.

(4) All money payable by any member to the building society under its instrument of association shall be a debt due from him to the society.

Conclusiveness of certificate of incorporation.

15. A certificate of incorporation given by the Commissioner under this Part in respect of any association shall be conclusive evidence that all the requirements of this Act in respect of registration and of matters precedent or incidental thereto have been complied with, and that the association is a building society authorized to be registered and duly registered under this Act.

Alteration of instrument of association.

16.

(1) A building society may alter the provisions of its instrument of association,

(2) The alteration shall not take effect until it has been approved by the Commissioner.

(3) The Commissioner may in his discretion approve or refuse to approve of the alteration.

[§ 5, 30 of 1955]

The decision of the Commissioner on an application for the Commissioner’s approval of the alteration of the provisions of the instrument of association of a building society shall, if an address is specified in the application, be notified in writing to the applicant at that address.

(4) The Commissioner may of his own motion alter the instrument of association of any building society; and any alteration so made by the Commissioner shall take effect as though it had been made by the society and approved by the Commissioner.

Appeals to Minister.


[ 6, 30 of 1955]

17. Any person who is aggrieved by the refusal of the Commissioner to approve of the instrument of association of a building society or any alteration thereof may, within thirty days after the date on which notice of such refusal is given to the applicant for such approval, appeal in writing against such refusal to the Minister whose decision on such appeal shall be final and conclusive.

Copies of instrument of association to be given to members.

18.

(1) A building society shall, on being so required by any member, send him a copy of its instrument of association upon payment of the prescribed fee. All sums paid as fees under the preceding provisions of this section shall be credited to the fund of the society.

(2) Where any alteration is made in the instrument of association of a building society, every copy of the instrument issued after the alteration has taken effect as hereinbefore provided in this Act shall be in accordance with the alteration.

Definition of member of a building society.

19.

(1) The subscribers of the instrument of association of a building society shall be deemed to have agreed to become members of the society, and on its registration shall be entered as members in its register of members which it is hereby required to keep and maintain.

(2) Every other person who agrees to become a member of a building society, and whose name is entered in its register of members, shall be a member of the society.

Contracts.

20.

(1) Contracts on behalf of a building society may be made in the prescribed manner.

(2) A contract made according to this section shall be effectual in law and shall bind the society and all other parties thereto and their legal representatives.

(3) A contract made according to this section may be varied or discharged in the same manner in which it is authorized under this section to be made.

Bills of exchange and promissory notes.

21. A bill of exchange or promissory note shall be deemed to have been made, executed, or endorsed on behalf of a building society, if made, executed, or endorsed in the name of, or by or on behalf or on account of, the society by any person or persons duly authorized thereto as herein after provided.

Persons authorized to act un behalf of a building society.

22. No persons other than the directors and persons thereunto expressly authorized by the board of directors and acting within the limits of the authority so conferred on them shall have any authority to make, draw, accept or endorse any promissory note, bill of exchange, cheque or order for the payment of money in the name or on behalf of a building society or to enter into any contract so as to impose thereby any liability on the society or otherwise to pledge the credit of the society.

Execution of deeds abroad.

23. The board of directors of a building society may, by writing under the seal of the society, empower any person, either generally or in respect of any specific matter, as its attorney, to execute deeds on its behalf at any place not situate in Ceylon.

Receipts when valid.

24. A receipt signed by any person authorized in writing by the board of directors of a building society to give receipts, shall be an effectual discharge for moneys paid to the society.

Company law not to apply to building societies unless so applied by Order of the Minister.

25.

(1) The provisions of the Companies Ordinance, (other than the provisions of that Ordinance which are made applicable to a building society under this Act), or of any other written law relating to companies, shall not apply to a building society.

(2) Notwithstanding anything in subsection (1), the Minister may, whenever it shall seem to him expedient to do so, by Order published in the Gazette declare, as respects any particular building society or building societies generally, that any such provisions of the Companies Ordinance* as are not for the time being applicable to such society or societies or the provisions of any other written law relating to companies, shall apply to such society or societies, and accordingly so long as that Order remains in force the provisions so applied shall mutatis mutandis apply in the case of such society or societies, as the case may be, in the manner and to the same extent as they apply in the case of a company.

Application of Pan IX of this Act to loans granted by building societies.


[ 7, 30 of 1955]

26. The Minister may by Order published in the Gazette declare that all or any of the provisions of Part IX of this Act shall apply to loans granted by any building society specified in the Order or to loans granted by all building societies.

PART IV
HOUSING BODIES
Declaration of housing bodies.

27.

(1) The Minister may, upon application made in that behalf, by Order published in the Gazette declare that any body of persons specified in the Order shall be a housing body for the purposes of this Act.

(2) No Order shall be made by the Minister under subsection (1) in respect of any body of persons which is a building society or building company.

Power of housing bodies to carry out certain housing objects.

28.

(1) For the purpose of constructing houses and providing amenities and services for its members or employees, any housing body may carry out any such housing object, and may exercise any such housing and other powers, as may be necessary for that purpose; and any houses constructed by that body may be let on such terms as would enable the tenant of each such house to be its owner after making a certain number of monthly payments as rent.

(2) The provisions of subsection (1) shall have effect notwithstanding anything in the memorandum or articles of association, or in the written law, charter or other instrument, by which a body of persons which is a housing body for the purposes of this Act has been established.

BUILDING COMPANIES
Declaration of building companies.

29.

(1) The Minister may, upon application made in that behalf, by Order published in the Gazette declare that any company specified in the Order shall be a building company for the purposes of this Act.

(2) No Order shall be made by the Minister under subsection (1) in respect of any company unless the object or objects of the company as stated in its memorandum of association consists or consist solely of any housing object or objects.

Powers of building companies to carry out housing objects.

30.

(1) For the purpose of carrying out any housing object or objects stated in its memorandum of association, any company which is declared to be a building company under this Act shall have and may exercise any such housing and other powers as may be necessary for that purpose.

(2) The provisions of subsection (1) shall in their application in the case of a company which is declared to be a building company under this Act have effect notwithstanding anything to the contrary in any written law relating to companies or in the memorandum or articles of association of the company.

PART V
RECOVERY OF POSSESSION OF HOUSES BY THE COMMISSIONER, BUILDING COMPANIES, BUILDING SOCIETIES, AND HOUSING BODIES
Houses to which this Part applies, and interpretation of the expressions ” landlord ” and ” occupier “.


[ 9, 30 of 1955]

31

(1) This Part shall apply to every house provided by the Commissioner or by a building company, building society or housing body for occupation by any person, whether such occupation is upon the payment of any rent or not.

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

(3) Where a house is provided by a building company, building society or housing body for occupation by any person, then, with reference to that house, the expression ” landlord ” in this Part means such company, society or body, and the expression ” occupier ” means that person.

Obligation to vacate houses to which this Part applies .

32.

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

(2) Where any house 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 house 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.

Application to court for recovery of possession and service of rule nisi

33.

(1) In any case where the occupier of any house to which this Part applies fails to court for recovery of comply with the provisions of subsection (1) of section 32, it shall be lawful for the landlord to file, in the Primary Court of the division in which the house is situated, an application praying for the recovery of possession of the house, and for the ejectment from the land or premises on which the house is situated of the occupier, his dependants and every other person occupying such land or premises or any portion thereof. 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 a rule nisi requiring him-

(a) to appear on a date specified in such rule, not being earlier than three, or later than seven, clear days after the date of the service of the rule ; and

(b) to show cause why he should not deliver possession of the house as required by section 32 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.

(3) A rule nisi under subsection (2) shall be deemed to have been duly 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 posted by the Fiscal, or person authorized as aforesaid on some conspicuous part of the house to which the rule relates.

Adjournment of hearing.

34.

(1) If any occupier upon whom a rule nisi is served under this Part appears before the court on the date specified in the rule 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 a date 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 other written law.

Issue and execution of writ for delivery of possession.

35.

(1) If any occupier upon whom a rule nisi has been served under this Part, does not appear on the date specified in such rule 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 32 of the house specified in the rule 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 rule 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 Court requiring and authorizing him before a date specified in the writ, not being earlier than three, or later than seven, clear days from the date of the issue of such writ, to deliver possession of the house 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 house is situated, the occupier, his dependants and every other person occupying such land or premises or any portion thereof. Such writ shall be sufficient for the said Fiscal or any police officer authorized by him in that behalf to enter the house with such assistants as the Fiscal or such officer shall deem necessary and to give possession accordingly, and to eject from the house and from such land or premises the occupier, his dependants and every other person occupying such land or premises ;

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 house 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-

(a) the illness of the occupier or any of his dependants; or

(b) the failure of the landlord in any case referred to in section 32 (2) to pay any wages lawfully due to the occupier or to grant to him any benefit or privileges which he is entitled under any other written law to receive from the landlord in his capacity as an employer; or

(c) the failure of the landlord in that capacity to issue to the occupier any discharge certificate or identification certificate which should properly be given to him; or

(d) the failure of the landlord in any case where the house is let on terms enabling the occupier to become its owner after making a certain number of specified payments as rent, to repay to the occupier any sum for the repayment of which provision is made in the event of the termination of his occupation in the agreement entered into between the landlord and the occupier; or

(e) any other cause which is good and sufficient in the opinion of the court.

Appeals.

36. Any person who is dissatisfied with any final judgment, or any order having the effect of a final judgment, pronounced or made by a Primary Court under this Part may, before the expiry of a period of fourteen days (exclusive of public holidays) from the date of such judgment or order, appeal to the Court of Appeal against such judgment or order; and the provisions of any other written law relating to appeals to the Court of Appeal from judgments or orders of Primary Courts shall apply in the case of any appeal preferred under the preceding provisions of this section.

Provisions of this Act to apply exclusively in all actions for ejectment from houses to which this Part applies.

37. No action for the recovery of the possession of any house to which this Part applies or for the ejectment of the occupier from the land or premises in which the house is situated, shall be taken except under the provisions of this Part.

Costs, charges and stamp duties.

38. For the purpose of the application of the provisions of the Stamp Ordinance* in respect of the duties on law proceedings, and of the provisions of the Civil Procedure Code in respect of costs and charges, proceedings under this Part shall be deemed to be a money case of the value of fifty rupees, and an application under section 33 of this Act shall be deemed to be a plaint in a money case of that value.

Forms.

39. The forms prescribed in the Schedule to the Small Tenements Ordinance f shall, so far as they are applicable, be used for the purposes of this Act, with such modifications as the court may direct or as the circumstances of the case may require.

Exclusion of application of section 13 of Rent Restriction Act.

40. Nothing in section 13 of the Rent Act shall apply to or restrict the institution or maintenance of any proceedings under this Part in respect of any house to which this Part applies.

PART VI
CARRYING OUT OF HOUSING OBJECTS BY THE COMMISSIONER
Commissioner may carry out housing objects for the Government.

41.

(1) The Minister may, from time to time, direct the Commissioner to carry out, on behalf of the Government, any housing object of any class or description referred to in paragraphs (a) to (A) of section 2.

(2) The costs incurred by the Commissioner in carrying out any housing object on behalf of the Government under subsection (1), including all sums payable under any contracts entered into or any arrangements made by him for that purpose, shall be a charge on the National Housing Fund.

Commissioner may carry out housing objects with the consent of the owners of land

42.

(1) The Commissioner may, with the approval of the Minister, carry out any housing object in or upon any land by agreement with all the owners of that land, or in the absence of such agreement, by agreement with the majority of such owners, and on such terms as to the apportionment among, and payment by, such owners of the costs incurred by the Commissioner in carrying out that object as may be specified in the agreement.

(2) Regulations may be made under this Act providing-

(a) for the summoning of meetings of owners of land for the purposes of subsection (1);

(b) for the service of notices of such meetings on such owners and for the manner in which such service shall be effected;

(c) for the procedure to be followed at such meetings; and

(d) for all matters necessary for the purpose of enabling effect to be given to the provisions of that subsection.

(3) Where any agreement under subsection (1) is entered into in relation to any land, every owner of that land shall, notwithstanding that he is not a party to the agreement, be bound by the agreement in like manner and to the same extent as though he were a party thereto.

Costs of Commissioner in carrying out any housing object under section 42.

43. The costs incurred by the Commissioner in carrying out any housing object in or upon any land under section 42, including all sums payable under any contracts entered into or arrangements made by him for that purpose, shall be a charge on the National Housing Fund. All sums paid or recovered as such costs by the Commissioner from the owners of such land shall be credited to that fund.

PART VII
FINANCIAL ASSISTANCE BY GOVERNMENT FOR CARRYING OUT HOUSING OBJECTS
Power of Commissioner from National Housing Fund.

44.

(1) The Commissioner may, in accordance with regulations which are hereby authorized and required to be made for that purpose under this Act, grant loans from the National Housing Fund to any person for the carrying out of any housing object. Such regulations may make provision for and in respect of all such matters as may be deemed necessary or expedient for the purpose including the terms and conditions subject to which such loans may be granted.

(2) All sums recovered as principal and interest on any loans granted from the National Housing Fund shall be credited to that fund.

Applications for loans.

45.

(1) Every application for a loan from the National Housing Fund shall be made to the Commissioner on such form as the Commissioner may provide for the purpose, and shall contain the particulars required to be stated by the applicant, and shall be accompanied by copies of such plans, estimates, specifications, and other documents as may be required by the Commissioner.

Government guarantee in respect of loans.

46.

(1) The Minister in charge of the subject of Finance may, in accordance with regulations which are hereby authorized and required to be made for that purpose under this Act, guarantee the repayment of the principal and interest due on any loan (other than a loan from the National Housing Fund) for the carrying out of any housing object. Such regulations may make provision for and in respect of all such matters as may be deemed necessary or expedient for that purpose including the terms and conditions subject to which such guarantees may be undertaken.

(2) The payment of any sum of money guaranteed by the Minister in charge of the subject of Finance under subsection (I) is hereby charged on the Consolidated Fund.

Priority of charge created by loan granted by commissioner

47. Where the repayment of any loan granted by the Commissioner under this Part is secured by a mortgage of land, land shall, on and after the date of the mortgage, be charged with the repayment of the loan with interest thereon in priority to every other debt, mortgage or charge affecting such land, except a prior duly registered mortgage debt due to a creditor who in good faith advanced the money before the loan was granted by the Commissioner.

Application of Part IX of this Act to loans granted by the commissioner.


[ 10, 30 of 1955.]

48. The Minister may by Order published in the Gazette declare that all or any of the provisions of Part IX of this Act shall apply to any such loan granted by the Commissioner as is specified in the Order or to all loans granted by the Commissioner.

PART VIII
COMPULSORY ACQUISITION OF LAND FOR CARRYING OUT HOUSING OBJECTS AND DISPOSITION OF CROWN LAND
Compulsory acquisition of land.

49. Where the Minister certifies that any land (other than Crown land) should be of 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 the Commissioner, or to any other person by being disposed of under the succeeding provisions of this Act.

Disposition of Crown land.

50.

(1) A disposition of any Crown land-

(a) which has been made available by the Government acting on the advice of the Land Commissioner for the purpose of carrying out any housing object; or

(b) in or upon which any such object has been carried out by the Commissioner on behalf of the Government under this Act; or

(c) which was acquired by Government with a view to being made available for that purpose, may be made for that purpose under this Act by the appropriate authority with the prior approval of the Minister and subject to such conditions as the Minister may determine and to such further conditions as are, or are required to be, imposed by or under this Act.

(2) In determining the conditions subject to which a disposition of Crown land should be made under this Act the Minister shall have regard primarily to the interests of the public generally including those of persons requiring housing accommodation, and shall in particular have regard to the following considerations of policy, that is to say, that it is desirable, except in special circumstances, that any houses constructed in or upon that land should be let at a reasonable rent to individuals who are citizens of Ceylon and that they should be so let on such terms as will enable the occupiers thereof to become the owners of such houses after making a certain number of monthly payments as rent.

(3) A disposition of any Crown land under this Act shall, in addition to such conditions as may be imposed by the Minister, be subject to the condition that the grantee deposits in the National Housing Fund such sum as may be determined by the Commissioner and that the sum so deposited shall be forfeited to the fund if there is a breach of any condition to which such disposition is subject.

(4) Without prejudice to the discretion vested in the Minister to determine the conditions subject to which a disposition of Crown land may be made under this Act, regulations may be made prescribing the conditions subject to which any such disposition may be made. Regulations so made may provide-

(a) that title to such land shall revert to the Crown if the land is not used for the purpose for which the disposition was made or if it is used for any other purpose;

(b) that title to such land shall not pass to the grantee until the purpose for which the-disposition was made has been carried out; and

(c) for all such matters as may be necessary or expedient for ensuring that the land is used for that purpose.

(5) A disposition of Crown land under this Act shall be effected by an instrument of disposition signed and executed by the appropriate authority.

(6) Nothing in the Crown Lands Ordinance shall affect or be deemed or construed to affect any disposition of Crown land under this Act.


[ 11, 30 of 1955]

(7) No stamp duty shall be payable in respect of any instrument of disposition of Crown land under this section.


[ 11, 30 of 1955]

(8) Where a disposition of Crown land is to be made under this section, the Commissioner may, if there is no plan of that land made by the Surveyor-General’s Department, cause a survey and plan of that land to be made by a surveyor of the Department of National Housing or by any licensed surveyor approved by the Surveyor-General.

Reservation of minerals.

51. No disposition of any Crown land under this Act shall be deemed to confer any right to any mineral, mineral product, or mineral oil in, under, or upon that land unless otherwise expressly provided in the instrument of disposition; and, save as so expressly provided, all such minerals, mineral products, and oil shall, notwithstanding any such disposition, be deemed to remain and shall remain the absolute property of Her Majesty.

Covenants and conditions to run with the land.

52. Where the rights under the instrument of disposition of any Crown land under this Act are not personal to the grantee but may be assigned by act inter vivos or may pass on his death to his heirs or devisees, the burden of any covenants or conditions inserted in that instrument shall run with the land and shall be binding upon the grantee and upon all persons claiming that land through, from, or under the grantee.

Reversion of title to the Crown.

53. Upon the production before a court of competent jurisdiction of a certificate from the Commissioner to the effect that any Crown land which has been disposed of under this Act has not been used for that purpose or has been used for any other purpose or that there has been a failure to comply with any condition of the disposition, the Crown shall be entitled to a decree cancelling the disposition of such land and declaring the land to be vested in the Crown free from all encumbrances.

Cancellation of instruments of disposition of Crown land.

54. Where in the instrument of disposition of any Crown land under this Act provision is made to the effect that such disposition may be cancelled or determined-

(a) in the event of a failure to comply with any condition of such disposition; or

(b) in the event of any moneys due to the Crown under such instrument remaining unpaid for any period of time specified therein,

and where there is such a failure or where such moneys remain unpaid for the period so specified, as the case may be, the appropriate authority may by endorsement on such instrument cancel such disposition, and such disposition shall be determined accordingly:

Provided, however, that such endorsement shall not be made on such instrument until the grantee under such instrument has been afforded an opportunity of showing cause against the proposed cancellation.

Notice to be issued to party in occupation to vacate land.

55. Where the instrument of disposition of any Crown land under this Act is cancelled, the Government Agent of the administrative district in which that land is situated may in writing order any person in possession or occupation of that land to vacate that land within the time specified in the order.

Ejectment where occupant fails to vacate land.

56. Where a person on whom an order under section 55 is served fails to vacate the land to which the order relates within the time allowed by the order, he may be ejected from that land in accordance with the procedure prescribed by sections 120 to 127 (both inclusive) of the Land Development Ordinance which shall apply in relation to that land as though the instrument of disposition of that land were a grant under that Ordinance and that land were a holding under that Ordinance, and such order were a notice under section 119 of that Ordinance.

No legal claim for compensation, & c, to be founded on cancellation of instrument of disposition.

57. Neither the grantee under the instrument of disposition of any Crown land under this Act nor any other person shall be entitled to any sum by way of compensation, damages or otherwise by reason of the cancellation of such instrument under this Part of this Act; and no claim for any such sum shall be entertained by any court.

Dispositions executed by grantee.

58. Where in the instrument of disposition of any Crown land under this Act it is provided that any disposition of that land shall not be effected by the grantee under that instrument without the prior consent of the Commissioner, any disposition of that land executed by such grantee without such consent shall be void and inoperative for all purposes.

Rectification of errors, & c, in instruments of disposition.

59. Where the instrument of disposition of any Crown land under this Act contains any clerical or other error or requires amendment in respect of the description of that land or in respect of the inscription or recital of the name or designation of the grantee under such instrument or of any other material fact, such error may be rectified or such amendment may be made by an endorsement on such instrument signed by the appropriate authority and such grantee; and any endorsement so signed shall be sufficient for all purposes to rectify the error or to effect the amendment; and the instrument on which any such endorsement is made shall have effect as though it had been originally executed as so rectified or amended.

Authentication of copies of instruments of disposition.

60.

(1) A copy of the instrument of disposition of any Crown land under this Act shall be authenticated by the signature of an officer authorized in that behalf by the appropriate authority and shall be deposited for purposes of record at the office of the Registrar of Lands of the district in which that land is situated and at any other office which the Minister may from time to time appoint.

(2) Any such copy as is referred to in subsection (1) shall, if authenticated in the manner specified in that subsection, be primary evidence, within the meaning of section 62 of the Evidence Ordinance, of the instrument of which it purports to be a copy.

Definition of ” appropriate authority “.

61. For the purposes of this Part, the expression ” appropriate authority “, means the Commissioner or any officer authorized by him in that behalf.

Expenses of disposition of Crown land.

62.

(1) All expenses incurred in the disposition of any Crown land under this Act shall be a charge on the National Housing Fund.

(2) All sums realized by the disposition of any Crown land under this Act shall be credited to the National Housing Fund. Any sums so credited shall, if the Minister so directs, be paid out of the fund into the Consolidated Fund.

PART IX
PROVISIONS WHICH MAY BE MADE APPLICABLE TO LOANS
Application of this Part and interpretation of expression “appropriate authority”.


[ 12, 30 of 1955]

63.

(1) Any provision of this Part shall apply to a loan granted by a building society if by an Order made under section 26 the Minister declares that such provision shall apply to such loan.

(2) Any provision of this Part shall apply to a loan granted by the Commissioner if by an Order made under section 48 the Minister declares that such provision shall apply to such loan.

(3) In this Part the expression ” appropriate authority “-

(a) with reference to a loan granted by a building society, means that society, and

(b) with reference to a loan granted by the Commissioner, means the Commissioner.

Power of appropriate authority to investigate purpose to which loan is applied.


[ 12, 30 of 1955]

64. The appropriate authority may call upon any person to whom a loan has been of is granted by that authority to satisfy that authority that the loan has been or is being applied to the purpose for which it has been or is granted, and the person so called upon may adduce evidence before the appropriate authority or any officer authorized by that authority to take such evidence, to prove that the loan has been or is being applied for such purpose.

Power of appropriate authority to require additional security or recall loan.


[ 12, 30 of 1955]

65.

(1) The appropriate authority may at any time, in the discretion of that authority and without assigning any reason therefor, by written order direct that, within the time specified in that behalf in the order-

(a) additional security for a loan granted by that authority be provided to the satisfaction of that authority, and

(b) a loan granted by that authority be repaid either in full or in part.

(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 be 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 73 to 89 shall apply to and in relation to that loan.

Change of security.


[ 12, 30 of 1955]

66. The appropriate authority may, in lieu of the whole or any part of any security which that authority has already accepted for any loan, accept new security if the 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.

Mode of repayment of loans-


[ 12, 30 of 1955]

67. Every loan shall be repaid-

(a) by installments specified by the appropriate authority and paid at intervals so specified, or

(b) in any other manner so specified.

Registered address of borrower, & c.


[ 12, 30 of 1955]

68. Every person-

(a) to whom a loan is granted by the appropriate 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 appropriate authority, or

(c) who, under section 77, 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 appropriate 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 appropriate authority an address to which all notices to him may be sent.

Service of notice on borrower. & c.


[ 12, 30 of 1955]

69. Any notice which is required by or under this Act to be served on any person to whom section 68 applies shall be deemed to be duly served on that person if it is sent by post in a registered letter directed to that person at the address notified by him under that section, and the service shall be deemed to be effected at the time at which the letter would be delivered in the ordinary course of post.

Priority of charge created by loan made by appropriate authority,


[ 12, 30 of 1955]

70. Where a loan is granted by the appropriate authority on the mortgage of any land, that land shall on and after the date of the registration of such mortgage be charged with the payment of the loan with interest in priority to every other debt, mortgage or charge affecting it, except a debt which is secured by a mortgage duly registered prior to such date and which is due to a creditor who in good faith advanced the money before the loan was granted by the appropriate authority.

Form of mortgage of land.


[ 12, 30 of 1955.]

71.

(1) Every mortgage of land executed in favour of the appropriate authority as security for any loan shall be substantially in such one of the prescribed forms .

(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.

Default of payment.


[ 12, 30 of 1955]

72. Where default is made in the payment of any sum due on any loan granted on the mortgage of land, whether that sum is due on account of principal or interest or of both, default shall be deemed to be made in respect of the whole of the unpaid portion of that loan and the interest due thereon.

Action by appropriate authority where default is made.


[ 12, 30 of 1955]

73. Where under the provisions of this Act default is made or is deemed to be made in respect of the whole of the unpaid portion of any loan and the interest due thereon, the appropriate authority may, in the discretion of that authority, take action as specified either in section 74 or in section 76; and where in any case the appropriate authority takes action or commences to take action in accordance with section 74, that authority may at any time thereafter take action in that case under section 76 if that authority deems it necessary to do so.

Appointment of manager to take possession of mortgaged land.


[ 12, 30 of 1955]

74. Subject to the provisions of section 77, the appropriate authority may by order in writing authorize any person specified in the order to enter upon any land mortgaged to the appropriate authority as security for any loan in respect of which default has been made, to take possession of and to manage and maintain such land, and to exercise the same powers in the control and management of such land as might have been exercised by the mortgagor if he had not made default.

Procedure where manager is appointed.


[ 12, 30 of 1955]

75.

(1) Any person authorized by order of the appropriate authority under section 74 in respect of any land shall be entitled generally to take action in terms of the order and in particular-

(a) to sell the produce of such land ;

(b) to receive the rents, profits or other income from such land ;

(c) to pay the expenses incurred in the control and management of such land out of the income from such land;

(d) to appropriate to himself out of such income such sum, if any, as the appropriate authority may deem fit to fix as remuneration for his services; and

(e) to remain in possession of such land until all moneys due to the appropriate authority under the mortgage of such land have been fully paid or until he is directed by that authority to yield possession of such land under subsection (2).

(2) Any person authorized by order of the appropriate authority under section 74 in respect of any land shall-

(a) pay monthly, out of the income of such land, such sum, if any, as the appropriate authority in the discretion of that authority may fix, to the mortgagor for his maintenance;

(b) pay quarterly or as otherwise directed by the appropriate authority to such person or persons and in such manner as that authority may direct the balance of the income from such land remaining after the payments hereinbefore authorized have been made;

(c) keep and render to the appropriate authority at such intervals as that authority may determine, clear and accurate records of all sums received or paid out by him in respect of such land ; and

(d) yield possession of such land to the mortgagor or some other person as directed by the appropriate authority and pay to that authority any balance of the income from such land remaining in his hands after the payments hereinbefore authorized have been made.

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

Authorization of sale of mortgaged land.


[ 12, 30 of 1955]

76. Subject to the provisions of section 77, the appropriate authority may by order in writing authorize any person specified in the order to sell by public auction any land mortgaged to that authority as security for any loan in respect of which default has been made in order to recover the whole of the unpaid portion of such loan and the interest due thereon up to the date of the sale, together with the moneys and costs recoverable under section 83.

Where borrower is dead.


[ 12, 30 of 1955]

77.

(1) Save as otherwise provided in subsection (2), the provisions of sections 74 and 76 shall apply in 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-

(a) the District Court of Colombo or the District Court of the district in which the land mortgaged by the borrower as security for the loan is situate may, upon application made in that behalf by the appropriate authority and after service of notice of the application on such persons, if any, as the court may order, and if satisfied that the grant of probate or the issue of letters of administration is likely to be unduly delayed, appoint a person to represent the estate of the borrower for the purpose of this subsection, and

(b) the provisions of sections 74 and 76 shall not apply in the case of any default made by the borrower unless and until a representative of his estate is appointed under this subsection.

Notice of order of appropriate authority to sell land.


[ 12, 30 of 1955.]

78. Notice of every order under section 76 authorizing the sale of any land shall be published in the Gazette and in a daily newspaper printed, in English, 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 68.

Notice of sale.


[ 12, 30 of 1955]

79. Notice of the date, time and place of every sale shall, not less than fourteen days before the date fixed for the sale, be published in the Gazette, and copies of such notice shall be-

(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 78;

(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 and Magistrates’ Courts within the jurisdiction of which the land is situate.

Payment before sale-


[ 12, 30 of 1955]

80.

(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 appropriate authority under section 83 is tendered to that authority at any time before the date fixed for the sale of the land mortgaged to that authority as security for the loan, that land shall not be sold and no further steps shall be taken in pursuance of the order under section 76 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 appropriate authority under section 83 is tendered to that authority at any time before the date fixed for the sale of the land mortgaged to that authority as security for the loan, that authority may, in the discretion of that authority, direct that such land shall not be sold and that no further steps shall be taken in pursuance of the order under section 76 for the safe of such land.

Upset price.


[ 12, 30 of 1955]

81. The appropriate authority may fix an upset price below which the land mortgaged to that authority as security for the loan shall not be sold to any person other than that authority.

Default in respect of one of two loans on the same land.


[ 12, 30 of 1955]

82. In any case where two loans have been granted by the appropriate authority on the security of the same land and default is made in the payment of any sum due upon any one of such loans, the foregoing provisions of this Part shall apply notwithstanding that default may not have been made in respect of the other loan ; and the appropriate authority may, in any such case, by order under section 76 authorize the sale of the land for the recovery of the total amount due to that authority in respect of both such loans; and the provisions of this Part shall apply accordingly,

Recovery of expenses and costs incurred by the appropriate authority.


[ 12, 30 of 1955]

83.

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

(a) all moneys expended by that authority, in accordance with the covenants contained in the mortgage bond executed by the person to whom the loan was made, in the payment of premiums and other charges under any policy of insurance effected in respect of the land mortgaged to that authority, and in the payment of all other costs and charges authorized by the aforesaid covenants to be incurred by that authority; and

(b) the costs of advertising the sale of, and of selling, the mortgaged land :

Provided that the amount recovered as costs under paragraph (b) of this section shall not exceed such percentage of the loan as may be prescribed.

Payment of balance of proceeds of sale after deduction of amount due to the appropriate authority.


[ 12, 30 of 1955]

84. Where the mortgaged land is sold, the appropriate authority shall, after deducting from the proceeds of the sale the amount due on the mortgage and the moneys and costs recoverable under section 83, pay the balance remaining, if any, either to the borrower or to any person legally entitled to accept the payments due to the borrower, or, if the appropriate authority is in doubt as to whom the money should be paid, into the District Court of the district in which such land is situate to be drawn by the person entitled thereto.

Certificate of sale.


[ 12, 30 of 1955.]

85.

(1) Where the mortgaged land is sold, the appropriate authority shall sign a certificate of sale and thereupon all 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 appropriate 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 appropriate 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) Regulations may be made under this Act prescribing the form of the certificate of sale.

(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:

Order for delivery of possession.


[ 12, 30 of 1955]

86.

(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 situate and upon production of the certificate of sale issued in respect of that land under section 85, be entitled to obtain an order for delivery of possession of that land,

(2) Every application under subsection (1) shall be made, and shall be disposed of, by way of summary procedure in accordance with the provisions of Chapter XXIV of the Civil Procedure Code; and on all documents filed by any person other than the Commissioner for the purpose of each such application and on all proceedings held in consequence of any application made under that subsection by any person other than the Commissioner, 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 on applications for, and proceedings connected with or incidental to, the execution of a decree of a District Court for the delivery of possession of any immovable property of the same value as the land to which such application relates.

(3) Where any land sold in pursuance of the preceding provisions of this Part is in the occupancy of the debtor or of some person on his behalf or of some -person claiming under a title created by the debtor subsequently to the mortgage of the land to the appropriate authority, the District Court shall order delivery of possession of that land to be made to the purchaser by putting the purchaser, or any person whom he may appoint to receive possession on his behalf, in possession of that land.

(4) Where any land sold in pursuance of the preceding provisions of this Part is in the occupancy of a tenant or other person entitled to occupy it, the District Court shall order delivery of possession of that land to be made to the purchaser by affixing a notice of the sale having taken place, in the Sinhala, Tamil and English languages, in some conspicuous place on that land, and proclaiming to the occupant by beat of tom, or in such other mode as may be customary, at some convenient place, that the interest of the debtor has been transferred to the purchaser. The cost of such proclamation shall be fixed by the court and shall in every case be prepaid by the purchaser.

(5) Every order under subsection (3) or subsection (4) shall be deemed, as the case may be, to be an order for delivery of possession made under section 287 or section 288 of the Civil Procedure Code, and may be enforced in like manner as an order so made, the debtor and the purchaser being deemed, for the purpose of the application of any provision of that Code, to be the judgment-debtor and judgment- creditor respectively.

Cancellation of sale-


[ 12, 30 of 1955]

87. Where the land sold is purchased by the appropriate authority, that authority may, at any time before that authority resells that land, cancel the sale by an endorsement to that effect on a certified copy of the certificate of sale, upon the debtor or any person on his behalf paying the amount due in respect of the loan for which the land was sold (including the costs of seizure and sale) and interest on the aggregate sum at a rate not exceeding the prescribed rate. Such an endorsement shall, upon registration in the office of the Registrar of Lands, revest the land in the debtor as though the sale under this Part had not been made.

Resale by appropriate authority.


[ 12, 30 of 1955]

88.

(I) Where the land sold is purchased by the appropriate authority and the sale is not cancelled under section 87, that authority may at any time resell the land and transfer to the purchaser by endorsement on such copy of the certificate of sale as is certified by that authority to be a true copy, all the right, title and interest to or in that land acquired by that authority.

(2) The provisions of subsection (4) of section 85 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.

Appropriate authority not precluded from other methods of recovery.


[ 12, 30 of 1955]

89. Nothing in sections 73 to 88 shall be deemed to preclude the appropriate authority from recovering the amount due on any mortgage bond in accordance with the provisions of any other written law.

PART X
EXEMPTION FROM INCOME TAX AND GENERAL PROVISIONS
Exemption from income tax of income from new of houses.


[ 13, 30 of 1955]

90.

(1) The income accruing to any person from any new house shall be exempt from income tax under the Income Tax Ordinance in respect of the year assessment commencing on the 1st day of April, 1955, and each of the seven years of assessment immediately succeeding.


[ 13, 30 of 1955]

(2) In this section-

(a) the expression ” new house ” means a house which is used solely for the purpose of residence and in respect of which a certificate is issued by the Commissioner, upon application made in that behalf by the owner or any owner of that house, to the effect that the construction of that house commenced on or after the appointed date; and

(b) the expression ” income accruing to any person from any new house “, means-

(i) if the house is let, the income accruing to that person by way of rent; or

(ii) if the house is not let but is occupied by that person, the income which would accrue to that person by way of rent if it were let.


[ 13, 30 of 1955]

(3) The decision of the Commissioner on any application for a certificate under subsection (2) in respect of a house shall be final and conclusive.

Power of Commissioner to inspect plans, & c, relating to new houses.


[ 14, 30 of 1955.]

91. For the purpose of deciding whether to issue or refuse to issue a certificate under subscetion (2) of section 90 in respect of any house, the Commissioner shall have access, without fee or charge, to any plans, specifications or other documents relating to that house which are in the possession of the proper authority, and the officers of every such authority shall, upon application, permit the Commissioner or any other officer authorized in that behalf by the Commissioner to inspect and take copies of such plans, specifications or other documents.

Powers under this Act not to be exercised in contravention of other written law.

92. No person on whom any power is conferred by this Act shall exercise that power in contravention of the provisions of the Municipal Councils Ordinance, the Urban Councils Ordinance, the Town Councils Ordinance, or of any other written law.

Certificate from the Commissioner.

93. A certificate issued under section 53, or to the effect that a specified sum of money was due to the Crown or to the Commissioner from a specified person under this Act shall, if it purports to be signed by the Commissioner, be prima facie proof of the facts stated therein, and shall be admissible as evidence of such facts in any court of law without proof of the signature of the Commissioner.

Recovery of moneys due to the Crown or Commissioner

94.

(1) Upon the production of a certificate issued by the Commissioner . under this Act to the effect that a specified sum of money was due to the Crown or to him 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 situate, the court shall issue an injunction restraining that person from removing any movable property owned by 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 and 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 to 297 of the Civil Procedure Code shall, mutatis mutandis, apply to such seizure and sale.

(2) Where the Commissioner 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 or be deemed or construed to affect the right of the Crown or the Commissioner to recover moneys due to the Crown or the Commissioner, as the case may be, under this Act in any other manner or by any other procedure applicable in that behalf.

Signature of documents by Commissioner on behalf of the Government.

95. The Commissioner is hereby authorized to sign and execute all documents required to be signed or executed in the exercise, discharge or performance by him under this Act of any powers, functions or duties on behalf of the Government.

Declaration of secrecy.


[ 15, 30 of 1955.]

96.

(1) Every officer or servant of the Department of National Housing shall, before entering upon his duties under this Act, sign a declaration pledging himself to observe strict secrecy respecting all transactions of the Commissioner 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-

(a) when required so to do-

(i) by the Commissioner; or

(ii) by a court of law; or

(iii) by the person to whom such matter relates; or

(b) in the performance of his duties; or

(c) in order to comply with the provisions of this Act or any other law.

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

Offences.


[ 16, 30 of 1955]

97.

(1) If any building society contravenes or fails to comply with any provision of this Act or of any regulations made thereunder or of its instrument of association, or if any officer of the proper authority contravenes or fails to comply with the provisions of section 91, that society or that officer, as the case may be, shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one hundred rupees, and, in the case of a continuing offence, to an additional fine not exceeding fifty rupees for every day during which the offence is continued after a conviction thereof.

(2) All sums paid or recovered as fines under this Act shall be credited to the National Housing Fund.

Regulations.

98.

(I) 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 for or in respect of all matters for which regulations are authorized or required by this Act to be made, all matters in this Act stated or required to be prescribed and all matters for which no provision or no effective provision is made by this Act.

(3) No regulation made by the Minister under this Act shall have effect until it is approved by Parliament and notice of such approval is published in the Gazette.

Loans and dispositions of land to be for the benefit of citizens of Ceylon.

99.

(1) No loan shall be granted under this Act and no disposition of any Crown land shall be made under this Act, to individuals who, or to companies or firms or other associations of persons in which the majority of members, are not citizens of Ceylon except with the prior approval of the Cabinet:


Provided, however, that any such loan may be granted or any such disposition may be made, to any such individuals, companies, firms or other associations of persons without the prior approval of the Cabinet for the purpose only of the erection of houses which are to be occupied exclusively by citizens of Ceylon.

(2) For the purposes of this section, the expression ” members ” includes partners:

Provided, however, that any such loan may be granted or any such disposition made to any such individual or body corporate for the purpose of the erection of houses for exclusive occupation by citizens of Ceylon.

Interpretation.

100.

(I) In this Act unless the context otherwise requires-

” appointed date ” means the 6th day of August, 1954;

” body of persons ” means any body of persons corporate or unincorporate;

” building ” includes a house ;

” building company ” means a company which is declared to be a building company by Order under this Act;

” building society” means a building society incorporated and registered under this Act;

“carry out”, in relation to a housing object, with its grammatical variations, includes the promotion of that object and the exercise of all such housing and other powers as may be necessary for carrying out that object;

” Commissioner” means the Commissioner for National Housing, and includes a Deputy Commissioner or an Assistant Commissioner;

” company ” means a company incorporated and registered under the Companies Ordinance*;

” construct”, in relation to any building, includes the conversion of a building into two or more flats ;

“disposition”, with its grammatical variations, means any transaction of whatever nature affecting land or the title thereto, and includes any conveyance, transfer, sale, lease, grant, surrender or exchange of land;

” flat” means a separate and self-contained set of premises constructed for use for residential purposes and forming part of a building from some other part of which it is divided horizontally;

” grantee ” means the person to whom any Crown land or right or interest in such land is disposed of by an instrument of disposition under this Act, and includes any person claiming such land or right or interest under, through or from that person;

“housing body” means any body of persons which has been declared to be a housing body by Order of the Minister under this Act;

” house ” includes a flat;

” housing object” means any object declared to be a housing object by section 2 of this Act;

” housing power” means any power declared to be a housing power by section 3 of this Act;

” instrument of disposition ” means any instrument or document whereby any disposition of Crown land is effected and includes a grant or lease relating to Crown land ;

” land ” includes any building, flat or any other erection on land, anything attached to the earth or permanently fastened to any other thing attached to the earth and any right or interest in or over land ;

” person ” includes any body of persons;


[ 17, 30 of 1955]

” proper authority” includes any Municipal Council, Urban Council, Town Council or Village Council, or any Board of Improvement Commissioners appointed under the Housing and Town Improvement Ordinance; and

” residential purposes “, in relation to any house, means the purposes of being occupied wholly or mainly as a residence.

(2) An instrument of disposition shall be deemed to be an instrument affecting land within the meaning of the Registration of Documents Ordinance.

Chapter 401 , Volume No. 12 Page No.113.