2. The following new Part is hereby inserted immediately after Part III, and shall have effect as Part IIIA, of the Land Reform Law, No. 1 of 1972:
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42A.
| | (1) Every estate land owned or possessed by a public company on the date on which this Part of this Law comes into operation shall, with effect from such date-
| | | (a) be deemed to vest in and be possessed by the Commission; and |
| (b) be deemed to be managed under a statutory trust for and on behalf of the Commission by the agency house or organization which, or the person who, on the day immediately prior to the date of such vesting, was responsible for, and in charge of, the management of such estate land, for and on behalf of such company, and such agency house, organization or person shall, subject to the provisions of this Part of this Law, be deemed to be the statutory trustee of such estate land. |
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| | (2) The vesting of an estate land under subsection (1) shall have the effect of giving the Commission absolute title to such estate land as from the date of vesting and, subject as hereinafter provided, free from all encumbrances. | | |
| | (3) The terms and conditions of the statutory trust, including the remuneration or agency fees of statutory trustees shall, subject as hereafter in this Part of this Law provided, be as prescribed by regulations made under this Law. | | |
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42B.
| | (1) Where any estate land is vested in the Commission under section 42a, the statutory trustee of such estate land, shall, during the continuance of such statutory trust, be responsible for the good and proper management of such estate land, subject to such general or special directions as may from time to time be issued by the Commission. | | |
| | (2) No such statutory trustee shall by any act or omission cause the condition of such estate land to deteriorate or the assets, movable or immovable, of such estate land to be destroyed, lost, damaged or depreciated in value. | | |
| | (3) It shall be the duty of such statutory trustee to allow the workers who were lawfully resident on the estate land on the day immediately prior to the date of such vesting to continue so to reside on such estate land, and to continue the employment of the workers who were in regular employment on such estate land on such day. | | |
| | (4) No credit or other financial arrangement which relates to the management, supervision or development of any such estate land or to the marketing of the produce of such land, and which is in force on the date on which this Part of this Law comes into operation shall be modified or altered except with the written consent of the Commission, and for the purpose of securing compliance with the preceding provisions of this subsection, the Commission may from time to time issue such directions as it may deem necessary or expedient to any statutory trustee, commercial bank public company, agency house, broker or any other party to such arrangement, and it shall be the duty of every person to whom any such direction is issued to comply therewith. | | |
| | (5)
| | | (a) Subject to the provisions of paragraph (b), where any estate land is vested in the Commission, the rights and liabilities of the former owner of such estate land under any contract or agreement, express or implied, which relates to the purposes of such estate land and which subsists on the day immediately prior to the date of such vesting, and the other rights and liabilities of such owner which relate to the running of such estate land and which subsist on such day, shall become the rights and liabilities of the Commission; and the amounts required to discharge all such liabilities shall be deducted from the amount of compensation payable in respect of such estate land. |
| (b) The Minister may at any time repudiate any liabilities referred to in paragraph (a), if he is of opinion that such liabilities were incurred mala fide, dishonestly or fraudulently. Notice of the repudiation shall be given by the Minister to the parties affected by such repudiation. |
| (c) Where the Minister under paragraph (6) repudiates any liabilities, such liabilities shall be deemed never to have become the liabilities of the Commission. |
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42C.
| | (1) Where any estate land is vested in the Commission under this Part of this Law, it shall be the duty of the statutory trustee of such estate land, within one month of the date of such Testing, to furnish in writing to the Commission a declaration containing the following particulars: -
| | | (a) the name and postal address of the estate land; |
| (b) the name and address of the former owner of the estate land; |
| (c) the situation and extent of the estate land, the plantations thereon, the area covered by each such plantation and the yield of such plantation in each of the five calendar years immediately preceding the date of vesting; |
| (d) a description of the buildings, factories, machinery, implements, vehicles and other things, movable and immovable, belonging to the estate land ; |
| (e) the balance sheet and profit and loss account of the estate land for each of the five accounting years immediately preceding the date of vesting; |
| (f) copies of declarations submitted to the Commissioner-General of Inland Revenue in respect of any tax payable in respect of such estate land in each of the three accounting years immediately preceding the date of vesting; |
| (g) a statement of interim and final dividends declared by the former owner for each of the five accounting years immediately preceding the date of vesting; |
| (h) particulars of sales of other estate lands, if any, in the administrative district, of which the statutory trustee has knowledge and which have taken place during the period of three years immediately preceding the date of vesting ; and |
| (i) such other particulars as may be prescribed ; and |
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| | (2) A copy of the declaration furnished to the Commission under subsection (1) shall be sent by the statutory trustee to the former owner of such estate land who shall have the right within ninety days of the receipt by him of such copy, to address any observations on the information therein contained, to the Commission. | | |
| | (3) It shall also be the duty of the statutory trustee of such estate land, to furnish to the Commission in respect of such estate land within four months of the date of vesting-
| | | (a) a profit and loss account in respect of the period commencing on the day following the last day of the previous accounting year and ending on the day immediately preceding the date of vesting; |
| (b) the balance sheet as at the day immediately preceding the date of vesting; and |
| (c) such other information as may be prescribed. |
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42D.
| | (1) Where any person who was not lawfully resident on any estate land vested in the Commission attempts to take up, or takes up, residence on such estate land, it shall be the duty of the statutory trustee and of the superintendent of such estate land immediately to report the fact in writing to the Commission and to the police officer in charge of the nearest police station. | | |
| | (2) Upon receipt by the Commission of a report under subsection (1), an authorized officer or agent of the Commission may give directions to any police officer in connection with the ejectment of such persons from such estate land and such police officer shall take such steps and may use such force as may be necessary for securing compliance with such directions. | | |
| | (3) Where the authorized officer or agent of the Commission is unable or apprehends that he will be unable to eject such persons from such estate land, he shall, on making an application in that behalf to the Magistrate's Court having jurisdiction over the area in which the estate land is situated, be entitled to an ex parte order of the court directing the Fiscal to eject such persons from such estate land. | | |
| | (4) Where an order under subsection (3) is issued to the Fiscal by the Magistrate's Court, he shall forthwith execute the order and shall in writing report to the court the manner in which that order was executed. | | |
| | (5) For the purpose of executing the order issued by the Magistrate's Court under subsection (3), the Fiscal or any person acting under his direction may seek the assistance of any police officer and may use such force as may be necessary to enter the estate land and to eject such persons and their dependants, if any, therefrom. | | |
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42E. No servitude over any estate land shall in any manner be affected by the vesting of such estate land in the Commission under the provisions of this Part of this Law, unless and until such servitude has been determined by the Commission. Where such servitude is so determined, the owner of the servitude shall be entitled to compensation. |
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| 42F. Where any estate land subject to a mortgage, lease, usufruct or life interest is vested in the Commission under the provisions of this Part of this Law, the mortgagee, lessee, usufructuary or the holder of the life interest, as the case may be, shall have a lien to the extent of his interest in such estate land on the compensation payable in respect of such estate land. |
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| 42G. Any statutory trust under section 42A may be terminated at any time at the option of the Commission, and the Commission may at any time take possession of any estate land vested in the Commission. Unless terminated earlier, such trust shall continue for one year from the date of vesting, and if the Commission so decides, be continued for a further period of one year. No statutory trust may be continued for any further period by the Commission, except with the express approval of the Minister. |
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| 42H.
| | (1) Any estate land vested in the Commission under this Part of this Law may be used for any of the following purposes:-
| | | (a) alienation by way of sale, exchange, rent purchase or lease to persons for agricultural development or animal husbandry, or for a co-operative or collective farm or enterprise; |
| (b) alienation by way of sale in individual allotments to persons for the construction of residential houses; |
| (c) alienation to any corporation established or to be established under the State Agricultural Corporations Act, No. 11 of 1972, or to the Ceylon State Plantations Corporation established under the Ceylon State Plantations Corporation Act, No. 4.of 1958; |
| (d) for a farm or plantation managed by the Commission directly or by its agents; |
| (e) for village expansion or any other public purpose. |
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| | (2) In determining the purposes for which estate lands vested in the Commission may be used, the Commission shall be subject to such directions as may from time to time be issued in that behalf by the Minister. | | |
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42J.
| | (1) Compensation shall be payable in respect of every estate land vested in the Commission under this Part of this Law. | | |
| | (2) The amount of compensation to be paid in respect of any estate land vested in the Commission shall be such sum as in the opinion of the Chief Valuer constitutes a reasonable value of such estate land as on the date of vesting. In determining the amount of compensation, the Chief Valuer shall take into consideration, inter alia, the condition of the estate land as on the date of vesting, the dividends and profits declared by the owner thereof in each of the five accounting years- immediately preceding the date of vesting and the prices at which estate lands in the area in which such estate land is -situated were sold during the period of three years immediately preceding the date of vesting. | | |
| | (3) The manner and mode of payment of compensation shall be determined by the Minister in consultation with the Minister in charge of the subject of Finance and the Minister in charge of the subject of Planning and Economic Affairs. | | |
| | (4) The compensation payable, less any deductions that may be made from such compensation under this Part of this Law, shall carry interest, as from the date on which it accrues due until payment, at such rate as may be determined by the Minister with the concurrence of the Minister in charge of the) subject of Finance and the Minister in charge of the subject of Planning and Economic Affairs. | | |
| | (5) The provisions of sections 29 to 40 (both inclusive) shall, mutatis mutandis, apply in respect of estate lands vested in the Commission under this Part of this Law. | | |
| | (6) Where a person is entitled to compensation in respect of any estate land vested in the Commission, the Commission shall, after reasonable notice to such person, pay from the amount of such compensation-
| | | (a) to the Commissioner-General of Inland Revenue, any sum certified under the hand of the Commissioner-General of Inland Revenue to the Commission to be due from such person under the Inland Revenue Act, No. 4 of 1963; and |
| (b) to the Commissioner of Labour, any sum certified, within a period of one year from the date of vesting of such estate land, under the hand of the Commissioner of Labour to the Commission to be due from such person as arrears of salary, provident fund contributions, gratuity or other monetary benefit to any person employed in such estate land. |
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| | (7) Notwithstanding the provisions of subsections (1) to (5) (both inclusive) of this section, the Commission may pay to any person entitled to compensation in respect of any estate land vested in the Commission under this Part of this Law, such amount and in such manner or mode as the Minister may, in consultation with the Minister in charge of the subject of Finance and the Minister in charge of the subject of Planning and Economic Affairs, direct the Commission to pay, pursuant to any agreement or negotiated settlement reached between the Minister and such person in respect of the amount of compensation for such estate land and the manner and mode of payment thereof. | | |
| | (8) Where compensation has been paid in respect of any estate land in accordance with the provisions of this section, no further claim against the Commission either by the person to whom such compensation was paid or by any other person shall be allowed and no action shall be instituted against the Commission in any court in respect of such further claim; | | |
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42K. Where the Minister in consultation with the Minister in charge of the subject of Trade, the Minister in charge of the subject of Planning and Economic Affairs and the Minister in charge of the subject of Finance, is of the opinion that it is necessary, for the purpose of giving effect to this Part of this Law, to vest in the Government, the business undertaking of any agency house or organization which, under this Part of this Law, is the statutory trustee of any estate land vested in the Commission, the Minister may request the Minister of Finance to vest such business undertaking in the Government under the provisions of the Business Undertakings (Acquisition) Act, No. 35 of 1971, and accordingly, the Minister of Finance may by Order made under section 2 of that Act, vest such business undertaking in the Government. |
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42L.
| | (1) Where the Minister is of the opinion that, for the good and proper management of any estate land vested in the Commission, it is necessary so to do, the Minister may by Order published in the Gazette appoint any person as a director or other executive officer or remove from office any director or other executive officer of the agency house or organization which under this Part of this Law is the statutory trustee of such estate land. | | |
| | (2) An Order made under subsection (1)-
| | | (a) shall have effect from the date of publication of such Order in the Gazette; |
| (b) shall be valid and effectual notwithstanding anything in any other law; |
| (c) shall not be questioned in any court or tribunal on any ground whatsoever ; |
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42M. In this Part of this Law, unless the context otherwise requires, |
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Sri Lanka Consolidated Acts