PUBLIC TRUSTEE

(1) The Public Trustee shall, subject to the provisions of this Ordinance and rules made thereunder, be capable of being appointed and of acting under that name –

(2) Save as hereinafter expressly provided, the Public Trustee shall have the same powers, duties, and liabilities, and be entitled to the same rights and privileges, and be subject to the same control and orders of the court as any other trustee acting in the same capacity.

(1) A person aggrieved by any act or omission or decision of the Public Trustee in relation to any trust may apply to the court, and the court may make such order in the matter as the court thinks just.

(2) Any order made by the court under subsection (1) shall have the effect of a decree of court.

(3) The Public Trustee may apply to the court for its direction or opinion on any question arising in the course of the administration of any trust, and the court may deal with any such application as the justice of the matter may require.

(4) The Judges of the Supreme Court may make rules regulating the procedure to be observed in all applications under this section, and, pending the making of such rules, such procedure shall be followed as shall be directed by the court.

(5) For the purpose of the calculation of stamp duty on any such proceedings, whenever the subject-matter in issue is of the value of one thousand five hundred rupees or over, such subject-matter shall be charged as of the value of one thousand five hundred rupees, and, whenever the subject-matter in issue is of the value of less than one thousand five hundred rupees, no stamp duty shall be charged in respect of any such proceedings, excepting stamp duty payable in respect of service of process.

(1) If any suit be brought by a creditor against the Public Trustee, such creditor shall be liable to pay the costs of suit, unless he proves that not less than one month previous to the institution of the suit he had applied in writing to the Public Trustee stating the amount and other particulars of his claim, and had given such evidence in support thereof as, in the circumstances of the case, the Public Trustee was reasonably entitled to require and had required.

(2) If any such suit is decreed in favour of the creditor, he shall, nevertheless, unless he is a secured creditor or otherwise entitled to preference, be only entitled to payment out of the assets of the deceased equally and rateably with the other creditors.

(3) Nothing in section 461 of the Civil Procedure Code, shall apply to any suit against the Public Trustee in which no relief is claimed against him personally.

(1) If any minor or person of unsound mind is entitled to any gift, legacy, or share of the assets of a deceased person, it shall be lawful for the person by whom such gift is made, or for the executor or administrator by whom such legacy or share is payable or transferable, or for any trustee of such gift, legacy, or share, to transfer the same by an instrument in writing to the Public Trustee, if he consents thereto.

(2) If any minor or person of unsound mind is entitled to any money which is in court, the court may, if it thinks fit, order, with the consent of the Public Trustee, that such money shall be transferred to the Public Trustee.

(3) The Public Trustee shall be deemed to be a suit able person to be appointed manager of the estate of a person of unsound mind under section 567 of the Civil Procedure Code, and a fit person to receive a certificate of curatorship in respect of the property of a minor under section 586 of that Code.

(4) On the appointment of the Public Trustee as manager of the estate of a person of unsound mind, or on the grant to him of a certificate of curatorship in respect of the property of a minor, all property to which such person of unsound mind or minor is entitled shall become vested in the Public Trustee as trustee for such person of unsound mind or minor respectively.

(1) The Public Trustee may be appointed as the next friend or guardian for the action –

(2) No appointment of the Public Trustee under this section shall be made without his consent.

(3) All costs incurred by the Public Trustee in any action as the next friend or guardian for the action of any minor or person of unsound mind shall be a charge upon the property, both movable and immovable, of that minor or person of unsound mind, as the case may be.

(4) In this section ” person of unsound mind ” means a person adjudged to be of unsound mind under the provisions of any written law for the time being in force.

(1) Whenever a person has been sentenced by any court to a term of imprisonment of not less than three years, such court may, on the application of the person sentenced and with the consent of the Public Trustee and subject to the payment of the prescribed fees, order that the property of such person shall be vested in the Public Trustee for the purpose of its custody and management during the period of the imprisonment.

(2) Upon the making of any such order, the Public Trustee shall be entitled to institute or maintain any suit or proceeding for the recovery of such property, and it shall be the duty of the Public Trustee, and he is hereby authorized to keep and manage such property in such manner as will be for the best interests of such person and his dependants.

(1) The Public Trustee may by that name, or any other sufficient description, be appointed to be trustee of any will or settlement or other instrument creating a trust or to perform any trust or duty belonging to a class which he is authorized by the rules made under this Ordinance to accept, and may be so appointed whether the will or settlement or instrument creating the trust or duty was made or came into operation before or after the commencement of this Ordinance, and either as an original or as a new trustee, in the same cases, and in the same manner, and by the same persons or court, as if he were a private trustee, with this modification that though the trustees originally appointed were two or more, the Public Trustee may be appointed sole trustee.

(2) Where the Public Trustee has been appointed a trustee of any trust, all existing trustees under the trust shall upon such appointment cease to be trustees.

(3) The Public Trustee shall not be so appointed as a new trustee where the will, settlement, or other instrument creating the trust or duty contains a direction to the contrary, unless the court otherwise order.

(4) Notice of any proposed appointment of the Public Trustee as a new trustee shall, where practicable, be given in the prescribed manner to all persons beneficially interested or to any existing trustee who are resident in Sri Lanka, and whose addresses are known to the persons proposing to make the appointment, or, if such beneficiaries are minors, to their guardians ; and if any such person as aforesaid entitled to notice within twenty-one days from the receipt of the notice applies to the court, the court may, if, having regard to the interests of all the beneficiaries, it considers it expedient to do so, make an order prohibiting the appointment being made, provided that a failure to give any such notice shall not invalidate any appointment made under this section.

(5) Where, by the terms of an instrument of trust or a will, the consent of any person is requisite to the appointment of a trustee, and such person refuses to consent to the appointment of the Public Trustee to such office, or where the person whose consent is so requisite is a minor, or person of unsound mind, or is absent from Sri Lanka, or is under any other disability, then such appointment of the Public Trustee may be made without such consent, if the court so orders and directs.

(1) Nothing in this Ordinance shall be deemed to prevent the transfer by the Public Trustee of any trust property vested in him to –

(2) Upon such transfer, such property shall vest in such trustee or other person, and shall be held by him upon the same trusts as those upon which it was held prior to such transfer, and the Public Trustee shall be exempt from all liability as trustee of such property except in respect of acts done before such transfer :

Provided that, in the case of any transfer under this section, the Public Trustee shall be entitled to retain out of the property any fees leviable in accordance with the provisions of this Ordinance.

(1) Any trustee or any beneficiary under any trust may apply to the court that the condition and accounts of such trust be investigated by the Public Trustee or by some other person appointed by him, and the court may, with the consent of the Public Trustee and after notice to such parties as it considers entitled to the same, make order accordingly.

(2) The Public Trustee or the other person making such investigation shall have the powers of an auditor under section 48 and that section shall apply accordingly. On the completion of the investigation, the Public Trustee or the other person shall forward to the applicant and to every trustee –

(3) The expenses of the investigation shall be such as may be agreed upon between the applicant and the Public Trustee, and shall, unless the Public Trustee otherwise directs, be borne by the estate ; and, in the event of the Public Trustee so directing, he may order that such expenses shall be borne by the applicant or by the trustees personally or partly by them and partly by the applicant.

(1) Whenever it is made to appear to the court that there is reasonable ground to suppose that any person who usually resided within the jurisdiction of such court has died intestate leaving property in Sri Lanka, the court may order and empower the Public Trustee to collect the estate of such person.

(2) Every such order shall be valid until revoked, and shall empower the Public Trustee to –

in like manner as if he were certainly dead, and the Public Trustee had obtained letters of administration to his estate.

(3) The Public Trustee shall not proceed to any distribution of the assets without an order of the court specially authorizing him to make such distribution.

(4) Within fourteen days after any order to collect has been granted, the Public Trustee shall, unless the court otherwise orders, cause notice of the fact that such order has been granted to be published twice in some newspaper published in the town or place where such person resided, or if there is no such newspaper, then twice in some daily newspaper published in Sri Lanka.

(1) Subject to rules under this Ordinance, the Public Trustee may, if he consents to act as such, and whether or not the number of trustees has been reduced below the original number, be appointed to be custodian trustee of any trust –

(2) Where the Public Trustee is appointed to be custodian trustee of any trust –

(3) The provisions of this section shall apply in like manner as to the Public Trustee, to any banking or insurance company or other body corporate entitled by rules made under this Ordinance to act as custodian trustee, with power for such company or body corporate to charge and retain or pay out of the trust property fees not exceeding the fees chargeable by the Public Trustee as custodian trustee.

(1) When the Public Trustee has given the prescribed notice for creditors and others to send in to him their claims against the estate of the deceased, he shall, at the expiration of the time therein named for sending in claims, be at liberty to distribute the assets or any part thereof in discharge of such lawful claims as he has notice of.

(2) He shall not be liable for the assets so distributed to any person of whose claim he had no notice at the time of such distribution.

(3) No notice of any claim which has been sent in and has been rejected or disallowed in part by the Public Trustee shall affect him unless proceedings to enforce such claim are commenced within three months after notice of the rejection or disallowance of such claim has been given in the prescribed manner, and unless such proceedings are prosecuted without unreasonable delay.

(4) Nothing in this section shall prejudice the right of any creditor or other claimant to follow the assets or any part thereof in the hands of the persons who may have received the same respectively.

(5) In computing the period of limitation for any suit, appeal, or application under the provisions of any law for the time being in force, the period between the date of submission of the claim of a creditor to the Public Trustee and the date of the final decision of the Public Trustee on such claim shall be excluded.

(1) If any claim is made to any moneys so paid over, and such claim is established to the satisfaction of the Secretary to the Treasury, the Secretary to the Treasury shall order the payment to the claimant of the amount in respect of which the claim is established.

(2) If such claim is not established to the satisfaction of the Secretary to the Treasury, the claimant may, without prejudice to his right to take any other proceedings for the recovery of such moneys, apply by petition to the court, and, after taking such evidence as it thinks fit, such court shall make such order on the petition in regard to the payment of such moneys as it thinks fit.

(3) The court may further direct by whom all or any part of the costs of such proceedings shall be paid.

(1) There shall be charged in respect of the duties of the Public Trustee such fees, whether by way of percentage or otherwise, as may be prescribed.

(2) The fees under this section may be at different rates for different properties or classes of properties or for different duties, and shall, so far as may be, be arranged so as to produce an amount sufficient to discharge the salaries and all other expenses incidental to the working of this Ordinance (including such sum as the Secretary to the Treasury may determine to be required to insure the public revenue against loss under this Ordinance).

(3) The incidence of the fees and expenses under this section as between capital and income shall be determined by the Public Trustee.

(4) Any expenses which might be retained or paid out of the trust fund, if the Public Trustee were a private trustee, shall be so retained or paid, and any fees leviable under this Ordinance shall be retained or paid in like manner as and in addition to such expenses.

(5) Rules made under this Ordinance may provide that interest shall be charged on all or any of the fees due under this section and may specify the circum stances in which and the rate at which such interest shall be charged.

(1) The accounts of the Public Trustee shall be audited at least once annually, and at any time if the Minister so direct, by the prescribed person and in the prescribed manner.

(2) The auditor shall examine such accounts, and shall forward to the Minister a statement thereof in the prescribed form, together with a report thereon and a certificate signed by him, showing –

or (as the case may be) that such accounts are deficient, or that the Public Trustee has failed to comply with this Ordinance or the rules made thereunder, in such respects as may be specified in such certificate.

(1) Every auditor shall have the powers of a civil court under the Civil Procedure Code –

(2) Any person who, when summoned, refuses, or without reasonable cause neglects, to attend or to produce any document or thing, or attends and refuses to be sworn or to be examined, shall be deemed to have committed an offence within the meaning of section 190 of the Penal Code.

(1) Whoever, during any examination authorized by this Ordinance, makes upon oath a statement which is false, and which he either knows or believes to be false or does not believe to be true, shall be deemed to have intentionally given false evidence in a stage of a judicial proceeding.

(2) If the rules require a declaration to be made for any purpose, a person who makes such declaration, knowing the same to be untrue in any particular, shall be guilty of the offence of giving false evidence.

(1) The Minister shall make rules for carrying into effect the objects of this Ordinance, and in particular for all or any of the following purposes, that is to say :-

(2) Every rule under this Ordinance shall be laid as soon as conveniently may be before Parliament, and may at any time within forty days of their being so laid before Parliament, or at any of the three meetings of Parliament, succeeding such date, by resolution of Parliament, be disallowed, amended, or otherwise dealt with as may be directed by the said resolution, but without prejudice to anything that may have been done thereunder.