39.
(1) Without prejudice to the provisions of section 40, the Ports Authority may, where any goods which have been placed in any transit sheds of the Authority are not removed from such transit sheds within a period of twenty- one days from the time when such goods were placed in such transit sheds, at the expiration of such period, sell by public auction any or all of such goods as are still in the said transit sheds: |
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(2) For the purpose of subsection (1) a sale shall not be rendered invalid by reason only that it takes place on premises or in an area to which the public is not admitted except on presentation of a pass. |
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(3) Before making such sale the Ports Authority shall give not less than there days notice thereof by advertisement in a Sinhala, Tamil and an English newspaper circulating in Sri Lanka unless the goods are of so perishable, hazardous or offensive a nature as in the opinion of the Authority to render their immediate sale necessary or advisable, in the case requires. |
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(4) Notice shall also be given to the owners of the goods and to the agent of the discharging vessel by letter deliver- ed at or sent by registered post to their addresses if such addresses are ascertainable from the manifest of the cargo or from any of the documents which have come into the hands of the Ports Authority or are otherwise known .Such notice shall specify the description and the location of the goods that are to be sold. |
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(5) Notwithstanding the provisions of subsection (4), the title of a bona fide purchaser shall not be invalidated by reason of the omission to send the said notice , and such purchased shall not be required to inquire whether such notice has been sent. |
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(6) The proceeds of the sale of any goods referred to in subsection (1) shall be applied by the ports Authority for the following payments and in accordance with the following order:-
| | (a) the customs duty payable to the Government in respect of such goods; | | |
| | (b) the expenses of the sale ; | | |
| | (c) the payment of the rates, charges and expenses due to the Authority in respect of the goods ; and | | |
| | (d) freight and other claims or hen of which notice under the law relating to merchant shipping has been given. | | |
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(7) The balance (if any), of the proceeds of the sale after making the payments under subsection (6), shall, if the goods are not perishable, hazardous or offensive goods, be paid to the person entitled thereto on demand or, where no such demand is made within one year from the sale of the goods or if the goods are perishable, hazardous or offensive goods, to the general revenue and thereupon all rights to the same by such person shall be extinguished. |
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