2. Section 71 of the Finance Act, No. 11 of 1963, hereinafter referred to as the " principal enactment " , is hereby amended as follows: -
| (1) by the repeal of subsections (1) and (2) of that section and the substitution therefor, of the following new subsections: -
| | (1) Subject to the provisions of subsection (2), the Bank is hereby authorized to acquire the whole or any part of any agricultural, residential or business premises, if the Bank is satisfied that those premises were, at any time before or after the appointed date but not earlier than the first day of January, 1952,-
| | | (a) sold in execution of a mortgage decree entered by a court against the owner of such premises (hereafter in this Part of this Act referred to as the " original owner "); or |
| (b) transferred by the owner of those premises (hereafter in this Part of this Act referred to as the " original owner ") or his heirs, executors or administrators to any other person or the heirs, executors or administrators of any other person in satisfaction of a debt which was due from the original owner; or his predecessor in title to that other person and which was secured by a mortgage of those premises subsisting immediately prior to the transfer; or |
| (c) transferred by the owner of those premises (hereafter in this Part of this Act referred to as the " original owner ") or his heirs, executors or administrators to any other person, at the request of a mortgagee of those premises, in satisfaction or part satisfaction of a debt which was due from' the original owner or his predecessor in title to that mortgagee and which was secured by a mortgage of those premises subsisting immediately prior to the transfer; or |
| (d) transferred by the owner of such premises to any other person after receiving from such other person a sum of money as consideration for such transfer and upon the condition that, on the repayment by the transferor (hereafter in this Part of this Act referred to as the " original owner ") of that sum with or without interest thereon within a specified period, such other person will re-transfer those premises to the original owner. |
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| (2) No premises shall be acquired under subsection (1)-
For the purposes of paragraph (d) of this subsection, " member of the family ", when used in relation to any person means the spouse of that person or any son or daughter of that person over eighteen years of age, or any parent, brother or sister dependent on that person.'; and | | (a) unless an application in that behalf has been made to the Bank by the original owner of such premises or, where such original owner is dead or is of unsound mind or otherwise incapable of acting, by the spouse or any descendant of such person, or if there is no surviving spouse or descendant of such person, by a parent, brother or sister of such person; or | | |
| | (b) if an application in that behalf had earlier been made to the Ceylon State Mortgage Bank under Chapter V A of the Ceylon State Mortgage Bank Ordinance, as amended by Act No. 33 of 1988, and the Ceylon State Mortgage Bank had determined that such premises should not be acquired or if a vesting Order in respect of such premises had been revoked by a divesting Order under section 70D of that Ordinance, as so amended; or | | |
| | (c) unless the Bank is satisfied that the average statutory income of the person making the application and of the other members of the family of which he is the head, computed under the provisions of the written law relating to the imposition of income tax, for the three years of assessment immediately preceding the date on which such application was made by him, does not exceed a sum of ten thousand rupees; or | | |
| | (d) if the Bank is satisfied that the premises to which the application relates are reasonably required for occupation as a residence for the owner of those premises or any member of the family of such owner or for the purposes of any trade, business, profession, vocation or employment of such owner or any member of his family and that such owner or member of his family has no other premises which could be used for the purpose for which the premises to which the application relates are being used; or | | |
| | (e) unless, in the case of an application relating to any agricultural premises, the Bank is satisfied that the applicant is not the owner of any other agricultural premises exceeding ten acres in extent. | | |
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| (3) by the insertion immediately after subsection (2) of that section, of the following new subsections: -
| | (2A). Where the Bank entertains an application for the acquisition of any premises referred to in subsection (1), the Bank shall-
Every notice under paragraph (b) shall be registered by the Registrar of Lands in the manner prescribed in the Registration of Documents Ordinance for the registration of an instrument affecting or relating to land and shall be deemed for such purposes to be an instrument affecting or relating to premises the prescribed particulars of which are set out in such notice: | | | (a) cause notice of the fact to be sent by registered post to the owner of the premises; and |
| (b) cause a copy of such notice to be delivered or transmitted to the proper Registrar of Lands for registration, setting out the prescribed particulars relating to such premises and stating that such premises may be acquired under this Part of this Act. |
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| | (2B)
| | | (a) Where the owner of any premises receives a notice under subsection (2A) relating to an application in respect of the premises, such owner shall not sell, gift, transfer, lease, mortgage or otherwise alienate the premises unless or until such application is dismissed by the Bank. |
| (b) Any sale, gift, transfer, lease mortgage or other alienation of any premises in contravention of the provisions of paragraph (a) of this subsection shall be null and void.". |
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Sri Lanka Consolidated Acts