111A.
| (1) Where any tax is in default and the Commissioner is of opinion that the recovery of such tax or any part thereof by the means provided in section 110 or section 111 is impracticable or inexpedient, he may make an application by petition in writing to the District Court having jurisdiction in the district where the defaulter resides or in which any immovable property belonging to the defaulter and specified in such petition is situate for an order by that Court that such property shall vest in the Crown. |
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| (2) Whenever the Commissioner makes an application to a District Court under this section, he shall forthwith issue to the defaulter, whether resident or non-resident, a notification thereof by personal service, registered letter sent through the post or telegraph, but the non-receipt of such notification by the defaulter shall not invalidate proceedings under this section. |
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| (3) Within ten days after the date on which an application is made to a District Court by the Com missioner under subsection (1), the Commissioner shall cause to be published in the Gazette a notice setting out the petition made in respect of such application. |
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| (4) No person shall, on or after the date on which a notification was issued to a defaulter under subsection (2) of an application made by petition in writing to a District Court for the vesting of any property, alienate to any other person-
| | (a) any property which is specified in that petition; or | | |
| | (b) any rights in respect of that property, | | |
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| (5) Any person who wishes to prefer a claim to any immovable property in respect of which a notice under subsection (3) has been published in the Gazette may, not later than fourteen days after the date of publication of such notice, apply by petition in writing to the District Court, to which the application was made by the Commissioner under subsection (1), to have such property declared as not liable to vesting in the Crown. Every such petition shall set out the right, title or interest of the petitioner to or in such property. |
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| (6) The District Court to which the application was made by the Commissioner under subsection (1) shall, after the expiry of the period of fourteen days referred to in subsection (5), proceed in a summary manner to investigate and determine such claims as have been made in respect of the immovable property proposed to be vested in the Crown by such application. At the end of the investigation of a claim-
| | (a) if the District Court is satisfied that the claimant is entitled to the ownership of the immovable property or any portion thereof, the Court shall make order accordingly, and | | |
| | (b) if the Court is satisfied that the claimant has not established his claim to that property or that he has established his claim only to a portion thereof, the Court shall make order vesting in the Crown that property or that portion thereof in respect of which the claimant has not established ownership, and the Court shall make such order as to costs as the Court shall deem just. | | |
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| (7) If at the expiry of fourteen days referred to in subsection (5), no claim has been made by any person under that subsection, the Court shall make order that the immovable property specified in the application made by the Commissioner under subsection (1) shall vest in the Crown. |
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| (8) Where any immovable property is vested in the Crown under this section by an order of the District Court, such property shall vest in the Crown subject to such encumbrances and charges as were existing on the date on which the application was made by the Commissioner. |
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| (9) Nothing in the preceding provisions of this section shall be deemed to empower the District Court to which an application is made by the Commissioner under subsection (1) to call in question or examine in any investigation under this section the correctness of any statement relating to particulars of the tax in default in such application or in the certificate referred to in that subsection or to postpone or defer such investigation by reason only of the fact that an appeal is pending against the assessment by which the tax which is in default was charged. |
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| (10) An order under this section vesting in the Crown any immovable property of a defaulter may, upon an application made by the Commissioner, be revoked by the District Court by which such order was made. |
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| (11) No application for the revocation of an order vesting in the Crown any immovable property of a defaulter shall be made to the District Court by the Commissioner except in any of the following cases: -
| | (a) Where the assessment of the tax in default is annulled upon the final determination of an appeal made under Chapter XII of this Act against such assessment. | | |
| | (b) Where the tax which the defaulter is liable to pay after the final determination of any appeal made under Chapter XII of this Act is paid by him within forty days after such final determination or within six months after the date of the order vesting such immovable property in the Crown, whichever is the later. | | |
| | (c) Where the amount of the tax in default is paid, when no appeal under Chapter XII of this Act is made by him against the assessment of the tax, by the defaulter within six months after the date on which the order vesting in the Crown such immovable property was made. | | |
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| (12) Where an order under this section vesting in the Crown any immovable property of any person is revoked under subsection (10), such person shall not be entitled to claim any compensation for any loss or damage which he may have suffered as a result of, or in consequence of, the order vesting such immovable property in the Crown having been made; and no action against the Crown for compensation for any such loss or damage shall be entertained by any court. |
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| (13) At any time after any immovable property is vested in the Crown under the provisions of this section, suck time being not less than six months after the date of vesting, the Commissioner shall cause the market value of such property to be determined by the Chief Valuer of the Government or by a Valuer of the Valuation Department who is authorized in that behalf by the Chief Valuer of the Government. |
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| (14) Where the market value of any immovable property vested in the Crown by an order of the District Court under this section is more than the amount of the tax which the defaulter has to pay, the Commissioner, in his discretion, may-
| | (i) with the approval of the Secretary to the Treasury, refund to the defaulter the amount by which the market value of that property exceeds the tax in default, or | | |
| | (ii) cause such property to be sold. | | |
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| (15) Every sale under this section of any immovable property shall be-
| | (a) on a date not earlier than six months after the date of the order vesting such property in the Crown; | | |
| | | (c) after notice of such sale is given at least fourteen days before the date fixed for such sale by advertisement published in the Gazette and in one or more newspapers. | | |
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| (16) The sum realized by the sale of any immovable property under this section shall be applied in the following order: -
| | (i) in satisfaction of the amount payable to any person who has a mortgage or charge on such immovable property and whose claim to such mortgage or charge has been proved to the satisfaction of the Commissioner, | | |
| | (ii) in payment of the costs and charges of maintaining and selling the immovable property, and | | |
| | (iii) in satisfaction of the tax in default, | | |
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| (17)
| | (a) Where an order is made by the District Court vesting any immovable property in the Crown, the Court may in such order or in any subsequent order direct that any person authorized in that behalf by the Commissioner shall take possession of such property for and on behalf of the Crown. | | |
| | (b) Where the person directed under this subsection to take possession of any immovable property is unable or apprehends that he will be unable to take possession of that property because of any obstruction or resistance which has been or is likely to be offered, such person shall, on his making an application in that behalf to the District Court which directed him to take possession of such property, be entitled to an order of that Court directing the Fiscal to deliver possession of that property to him for and on behalf of the Crown. | | |
| | (c) Where an order under paragraph (b) of this sub-section is issued to the Fiscal by a District Court, he shall forthwith execute that order and shall in writing report to the Court the manner in which that order was executed. | | |
| | (d) For the purpose of executing an order under paragraph (b) of this subsection, the Fiscal or any person acting under his direction may use such force as may be necessary to enter the property to which that order relates and to eject any person in occupation of that property and to deliver possession of that property to the person who is authorized to take possession of that property for and on behalf of the Crown. | | |
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| (18) Where an order under this section vesting in the Crown any immovable property of any person is revoked under subsection (10), the Crown shall be liable to account to such person for the income derived from such property during the period for which such property was vested in the Crown and to pay such income to such person less the expenses incurred in maintaining such property during that period. |
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| (19) Where any immovable property is sold under this section, the Commissioner shall in the name and on behalf of Her Majesty be entitled to execute the instrument of transfer of such property to the purchaser. |
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| (20) Any person who is aggrieved by an order of the District Court under subsection (6) may appeal therefrom to the Supreme Court, and the provisions of the Civil Procedure Code relating to appeals from the District Court to the Supreme Court shall apply in relation to such appeal. |
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Sri Lanka Consolidated Acts