Ceylon Petroleum Corporation Act (No. 28 of 1961)

(a) petrol; petroleum of General objects 5. The general objects of the certain classes of lhc or descriptions Corporation shall be— (b) kerosene; vested in the Corporation. Corporaflon. (a) to carry on business as an importer, (c) diesel oil, and (§4, 5 of 1963.] exporter, seller, supplier or distributor of petroleum; (d) furnace oil, IX/193 Cap.220] CEYLON PETROLEUM CORPORATION shall, save as otherwise expressly provided amended, varied or revoked by the Minister by or under this Act, vest exclusively in the by a like Order. Corporation. (2) The provisions of subsections (3) to (5), (2) On and after the appointed date, no both inclusive, of section 66 shall mutatis person, other than the Corporation, shall, mutandis apply to every Order made under save as otherwise expressly provided by or subsection (1) of this section in like manner under this Act, import, export, sell, supply and to the same extent as such provisions or distribute— apply to an Order made under the said section 66. (a) petrol; or (3) So long as an Order made by the

(b) kerosene; or Minister under subsection (1) is in force in respect of petroleum of any class or

(c) diesel oil; or description, no person other than the Corporation shall, save as otherwise

(d) furnace oil. expressly provided by or under this Act, import, export, sell, supply or distribute (3) The sale, supply or distribution by petroleum of that class or description. any person of any petrol, kerosene, diesel oil or furnace oil shall be deemed not to be— (4) The sale, supply or distribution by any person of petroleum of any class or (a) an interference with, or a violation of, description in respect of which there is for the exclusive right vested in the the time being in force an Order made by Corporation by subsection (1); or the Minister under subsection (1) shall be deemed not to be— (b) a contravention of the provisions of (a) an interference with, or a violation of, subsection (2), the exclusive right vested in the Corporation by that Order; or if, but only if, it is done under the written authority of the Minister or any authorized (b) a contravention of the provisions of officer under subsection (4), or of the Board subsection (3), of Directors under section 5E, and in accordance with the terms and conditions if, but only if, it is done with the written subject to which such authority is granted. authority of the Board of Directors under section 5E, and in accordance with the terms (4) The Minister or any authorized and conditions subject to which such officer may grant a written authority to any authority is granted- person to import, export, sell, supply or distribute petroleum of any class or 5D. On and after the appointed date, Exclusive right description specified in subsection ( I ) for the righl to explore for, and exploit, to explore for, the sole purpose only of enabling such &c,, petroleum produce and refine, petroleum shall vest vested in the person to provide petroleum of that class or exclusively in the Corporation; and Corporation. description as fuel for marine ships or accordingly, on and after that date, no [§4, 5 of 1963.1 aircraft. person, other than the Corporation, shall explore for, or exploit or produce or refine, Power of 5C. ( I ) The Minister may, from time to petroleum. Minister by time, by Order declare that the right to Order lo vest (he exclusive import, export, sell, supply or distribute 5E. Notwithstanding that the exclusive Power of, righl in the petroleum of any such class or description righl to sell, supply or distribute petroleum Board of Corporation to Directors to as shall be specified in the Order, not being of any class or description is vested in the authorize import, export, sell. supply or petroleum of any class or description Corporation by any provision of this Act or persons to sell, distribute specified in subsection (!) of section 5B. any Order made thereunder, the Board of &c-, petroleum petroleum of of certain certain classes shall, save as otherwise expressly provided Directors may, from time to time, as classes or or descriptions. by or under this Act, vest exclusively in the respects petroleum of that class or descriptions. [§4,5 of 1963.1 Corporation. Any such Order may be description only grant written authority to [§4,5 of 1963.] IX/194 CEYLON PETROLEUM CORPORATION [Cap.220 any person to sell, supply or distribute (4) The Minister, such officer or such petroleum of that class or description Board may, in his or its absolute subject to such terms and conditions as may discretion, decide at any time to be determined by such Board. cancel such authority. Control of the 5F. On and after the appointed date, no (5) The terms or conditions of such establishment person, other than the Corporation or any authority may be amended, varied and maintenance of person authorized by the Board of Directors or cancelled either of his or its own equipment and under section 5E, shall establish or maintain motion or on application in that facilities for the any equipment or facilities for the behalf made by the person to whom exploration, &c., of exploration, exploitation, production, such authority is granted. petroleum, refinement, storage, sale, supply or [§4,5 of 1963.] distribution of petroleum except with the (6) The Minister, such officer or such written authority of the Minister or any Board may, in his or its absolute authorized officer, or otherwise than in discretion, decide whether or not to accordance with the terms or conditions amend, vary or cancel any term or subject to which such authority is granted. condition of such authority. (7) Any decision made by the Minister, Control of the 5G. No person, other than the such officer or such Board under disposal of Corporation, shall export, sell, lease, the preceding provisions of this equipment and facilities transfer, hypothecate, alienate or dispose of section shall be final and intended for in any manner whatsoever any equipment or conclusive, and shall not be called the facilities which had been, or is or are being, in question in any court whether by exploration, &c., of or is or are, or was or were, intended to be way of writ or otherwise. petroleum. used for the exploration, exploitation, [§4.5of 1963.) production, refinement, storage, sale, supply 5 I. The expression " authorized officer " Meaning of the or distribution of petroleum except with the wherever it occurs in any of the sections 5B expression written authority of the Minister or any " authorized to 5H (both inclusive) means any public officer ". authorized officer, or otherwise than in officer or an officer of the Corporation [§4, 5 of 1963.1 accordance with the terms and conditions authorized in that behalf by the Minister. subject to which such authority is granted. S J. (I) No person other than the Special Special 5H. The following provisions shall be Corporation who on the 5th day of June, provisions provisions relating lu applicable in the case of the exercise of the 1963, was carrying on business as an employees of applicable to the power of power to grant a written authority conferred importer and seller, supplier or distributor persons who granting on the Minister, any authorized officer or of petroleum of any class or description were carrying written on business as the Board of Directors by any of the specified in subsection (1) of section 5B shall importer and authorities conferred on sections 5B, 5E, 5F and 5G :— terminate the employment of any person seller, &c., of the Minister, (hereafter in this section referred to as an petroleum. authorized [§4.5 of 1963.] (1) Such authority may be granted either " employee ") employed by him except with officers and the Board of of his or its own motion or on the written approval of the Commissioner, Directors. application in that behalf made by or otherwise than in accordance with the [§4, 5 of 1963-] any person. terms or conditions subject to which such approval is granted. (2) The Minister, such officer or such Board may, in his or its absolute A person who was carrying on the discretion, decide whether to grant business referred to in the preceding or refuse to grant such authority. provisions of this subsection is hereafter in this section referred to as an " employer ". (3) The Minister, such officer or such Board may, in his or its absolute (2) The following provisions shall apply discretion, decide the terms and in the case of the exercise of the powers conditions subject to which such conferred on the Commissioner to grant his authority should be granted. approval to an employer terminating the IX/195 Cap.220] CEYLON PETROLEUM CORPORATION employment of any employees :— any employer to an employee, such employer shall furnish to the Commissioner, (a) Such approval may be granted or within thirty days of the grant thereof, full refused on application in that details of the gratuity, compensation or behalf made by such employer. other benefit so granted. Such details shall (b) The Commissioner may, in his be furnished in such form and manner as absolute discretion, decide to grant may be determined by the Commissioner. or refuse such approval. (5) In this section, "Commissioner" (c) The Commissioner may, in his means the Commissioner of Labour, and absolute discretion, decide the includes a Deputy Commissioner of Labour. terms and conditions subject to which his approval should be 5K. The provisions of section 5A to 5J [§10.5 of granted, including in particular (both inclusive) shall have effect 1963.] terms and conditions relating to the notwithstanding anything to the contrary in payment by such employer to such any other provisions of this Act, or in any employee of a gratuity or undertaking, express or implied, given by or compensation for the termination on behalf of the Government or the of employ ment- Corporation relating to the business of (d) Any decision made by the importing, exporting, selling, supplying or Commissioner under the preceding distributing petroleum. provisions of this subsection shall be final and conclusive, and shall 6. The Corporation may exercise all or Powers of the not be called in question in any any of the following powers :- Corporation. court, whether by way of writ or (a) to acquire, hold, lake or give on lease otherwise. or hire, mortgage, pledge and sell or (3) Where, on or after June 5, 1963, any o t h e r w i s e dispose of, any employer has granted or grants to any immovable or movable property ; employee, in addition to any benefit such employee was or would be entitled to (b) to employ such officers and servants receive in the ordinary course of his as may be necessary for carrying employment, any ex gratia gratuity or out the work of the Corporation ; compensation or other benefit (hereafter in this subsection referred to as " ex gratia (c) to do anything for the purpose of benefits "), then, every person who was an advancing the skill of persons employee of that employer on June 5, 1963, employed by the Corporat-on or the shall be entitled, with the approval of the efficiency of the equipment of the Commissioner given upon application in Corporation or the manner in that behalf made by such person, to receive which that equipment is operated, the same ex gratia benefits so however that including the provision by the the amount thereof shall be as determined Corporation, and the assistance of by the Commissioner. The preceding the provision by others, of facilities provisions of this subsection shall apply to for training persons required to any person notwithstanding that he ceased c a r r y o u t t h e w o r k of t h e or ceases to be an employee of that Corporation; employer after June 5, 1963, for any reason (d) to establish a provident fund, and whatsoever other than misconduct. Any provide welfare and recreational approval or determination of the facilities, houses, hostels and other Commissioner under the preceding like accommodation for persons provisions of this subsection shall be final employed by the Corporation; and conclusive, and shall not be called in question in any court, whether by way of (e) to construct, manufacture, purchase, writ or otherwise. maintain and repair anything (4) Where an ex gratia gratuity or required for the purpose of the compensation or other benefit is granted by business of the Corporation; IX/196 CEYLON PETROLEUM CORPORATION (Cap. 220 (f) to make charges for any services (n) to enter into and perform or carry rendered by the Corporation in out, whether directly or through carrying on such businesss; any officer or agent authorized in that behalf by the Corporation, all (g) to purchase such quantities of such contracts or agreements as petroleum as may be necessary for may be necessary for the exercise of the purpose of the business of the the powers of the Corporation; Corporation; (o) to make rules in relation to its officers and servants, including their (h) to re-export petroleum; appointment, promotion, remuneration, disciplinary control, [§2, Law 2 of (i) with the approval of the Government, conduct and the grant of leave to 1976-] to promote any subsidiary them; organization in Sri Lanka or abroad which may in the opinion of (p) to make rules in respect of the the Board directly or indirectly administration of the affairs of the promote the interests, or be Corporation; and conducive to the attainment of the (q) to do all other things which, in the objects, of the Corporation; opinion of the Corporation, are necessary to facilitate the proper [§2, Law 2 of (j) to purchase, charter, build or carrying on of its business. 1976.] otherwise acquire, mortgage, sell, exchange and let out on hire or 7. (1) The Minister may, after Powers of the charter or otherwise deal with or consultation with the Board of Directors, Minister in relation to the dispose of, any tanker, bunker or give such Board general or special directions Corporation. vessel; in writing as to the exercise of the powers of the Corporation, and such Board shall give (§2, Law 2 of (k) to contribute such sums of money as effect to such directions. 1976.] may be determined by the. Board (2) The Minister may, from time to time, with the approval of the Minister direct in writing the Board of Directors to given with the concurrence of the furnish to him, in such form as he may Minister in charge of the subject of require, returns, accounts and other Finance and the Minister in charge information with respect to the property of the subject of Planning, to and business of the Corporation, and such recognized institutions for the Board shall carry out every such direction. p u r p o s e of p r o m o t i n g (3) The Minister may, from time to time, t e c h n o l o g i c a l , s c i e n t i f i c and industrial research; order all or any of the activities of the Corporation to be investigated and reported [§2, Law 2 of (l) to give any guarantee, security or upon by such person or persons as he may 1976.] indemnity to, and to enter into any specify, and upon such order being made, agreements with, any bank, the Board of Directors shall afford all such Governmenf department, local facilities, and furnish all such information, as may be necessary to carry out the order. authority, or any other person in order to obtain any rights, 8. (1) The Corporation shall have a Board of concessions, or privileges that may Board of Directors consisting of seven Directors. seem to the Board to be conducive members appointed by the Minister, one of [§3, Law 2 of 1976.] f o r t h e p u r p o s e s of t h e whom shall be so appointed in consultation Corporation; with the Minister in charge of the subject of Finance. (m) to delegate to any officer of the Corporation any such function of (2) A person shall be disqualified from being appointed or continuing as a Director the Corporation as the Corporation a n d in t h a t e v e n t s h a l l ipso facto may consider necessary so to cease to hold office, delegate for the efficient transaction of business; (a) if he is a Member of Parliament, or IX/197 Cap.220] CEYLON PETROLEUM CORPORATION (b) if he, directly or indirectly, by himself in the minutes of such Board, and such or by any person on his behalf or Director shall not take part in any for his use or benefit, holds or deliberation or decision of such Board with enjoys any right or benefit under respect to such contract. any contract other than a contract of employment made by, with or on 11. The quorum for any meeting of the Quorum for behalf of the Corporation, or Board of Directors shall be three. any meeting of Board of Directors. (c) if he has any such financial or other interest except as an employee of 12. The Chairman of any meeting of the Chairman of the Corporation as is likely to affect Board of Directors shall, in addition to his any meeting of the Board of prejudicially the discharge by him own vote, have a casting vote. Directors to of his functions as a Director. have a casting vole. (3) Where a Director is, by reason of 13. Subject to the other provisions of Regulation of illness, infirmity or absence from Sri Lanka, this Act, the Board of Directors may Procdure. temporarily unable to perform the duties of regulate the procedure in regard to the his office, the Minister may appoint any meetings of such Board and the transaction person to act in his place- of business at such meetings. (4) The Minister may. without assigning 14. The Board of Directors may act The Board of a reason, remove any Director from office. notwithstanding a vacancy among the Directors may act despite The removal of any Director Irom office by members thereof. vacancy. the Minister shall not be called in question in any court. 15. The general supervision, control and General administration of the affairs and business of control of the Corporation. (5) A Director who is not a public officer the Corporation shall be vested in the Board may resign the office of Director by letter of Directors of the Corporation. addressed to the Minister. 16. (1) The Board of Directors may Delegation of (6) Subject to the provisions of delegate to any Director or employee of powers and duties of Board subsection (4) and subsection (5), the term such Board any of its powers or duties. of Directors. of office of the Board of Directors shall be three years: (2) Every delegate appointed under subsection (!) shall exercise or perform the Provided that a Director appointed in power or duty delegated to him subject to place of a Director who diesi or resigns or the general or special directions of the otherwise vacates office shall, unless he Board of Directors. earlier resigns or otherwise vacates office, hold office for the uncxpired part of the 17. (I) The Minister shall appoint a Chairman of term of office of the Director whom he Chairman of the Board of Directors from the Board of succeeds. Directors and among the Directors and may at any time Managing appoint one of the Directors as the Director. Remuneration 9. All or any of the Directors may be Managing Director of the Corporation. The [§4, Law 2 of of Diretors. paid such remuneration, out of the funds of 1976.] Chairman of the Board of Directors shall be the Corporation, as may be determined by eligible for appointment as the Managing the Minister, with the concurrence of the Director, Minister in charge of the subject of Finance. (2) The Managing Director of the' Director to 10. A Director who is directly or Corporation shall be eligible for disclose indirectly interested in a contract proposed appointment as the Chairman of the Board interest in contract to' be made by the Corporation shall of Directors. proposed to be disclose the nature of his interest at a made by the meeting of the Board of Directors. The (3) The terms and conditions of the Corporation. d i s c l o s u r e s h a l l be r e c o r d e d appointment of the Managing Director of IX/198 CEYLON PETROLEUM CORPORATION [Cap.220 the Corporation shall be determined by the determined by that Board with like consent, Minister with the concurrence of the or be permanently appointed to the staff, on Minister in charge of the subject of Finance. such terms and conditions, including those relating to pension or provident fund rights, (4) The Managing Director's term of as may be agreed upon by that Board and office, his remuneration, his resignation or that Advisory Board or that authority. removal from or vacation of office, and his eligibility for reappointment on vacation of (6) Where any officer or servant of the office shall notwithstanding anything in Local Government Service or of any local subsection (6) of section 8 be in accordance authority is temporarily appointed to the with the terms and conditions of his staff of the Corporation, he shall be subject appointment. to the same disciplinary control as any other member of such staff. Appointment *19. (1) At the request of the Board of public of Directors, any officer in the public service 20. All officers and servants of the Officers and officers and officers and may, with the consent of that officer and of Corporation shall be deemd to be public servants of the Corporation servants of the the Secretary to the Ministry charged with servants within the meaning and for the deemed to be Local the subject of Public Administration, be purpose of the Penal Code. public servants. Government Service and of temporarily appointed to the staff of the any local Corporation for such period as may be 21. The Corporation shall be deemed to The authority to determined by the Board with like consent be a scheduled institution within the Corporation the staff of the deemed to be a Corporation. or be permanently appointed to such staff. meaning of the Bribery Act, and the scheduled provisions of that Act shall be construed institution (2) Where any officer in the public service accordingly. within the is temporarily appointed to the staff of the meaning of the Bribery Act- Corporation, the provisions of subsection (2) of section 9 of the Motor Transport Act, 22. (1) The seal of the Corporation shall Application No. 48 of 1957, \ shall, mutatis mutandis, be in the custody of the Board of Directors. and custody of apply to and in relation to him. the seal of the Corporation. (3) Where any officer in the public service (2) The seal of the Corporation may be is permanently appointed to the staff of the altered in such manner as may be Corporation, the provisions of subsection (3) determined by the Board of Directors. of section 9 of the Motor Transport Act, No. 48 of 1957,1 shall, mutatis mutandis^ (3) The seal of the Corporation shall not [§6, Law 2 of apply to and in relation to him. be affixed to any instrument or document 1976] except in the presence of two Direciors both (4) Where the Corporation employs any of whom shall sign the instrument or person who has entered into a contract with document in token of their presence. the Government by which he has agreed to serve the Government for a specified period, any period of service to the Corporation by PART II that person shall be regarded as service to the Government for the purpose of FINANCE discharging the obligations of such contract. (5) At the request of the Board of 23. (1) The initial capital of the Capital of the Directors, any officer or servant of the Corporation shall be ten million rupees. Corporation. Local Government Service or any local authority may, with the consent of that (2) The amount of the initial capital of officer or servant and of the Local the Corporation shall be paid to the Government Service Advisory Board or that Corporation out of the Consolidated Fund authority, as the case may be, be in such instalments as the Minister in charge temporarily appointed to the staff of the of the subject of Finance may, after Corporation for such period as may be consultation with the Minister, determine. * Section 18 is repealed by Law No. 2 of 1976. f Repealed by Law No. 19 of 1978. IX/199 Cap.220] CEYLON PETROLEUM CORPORATION (3) The capital of the Corporation may (3) The Board of Directors may, with the be increased, from time to time, by such consent of the Minister given with the amount as may be determined by the concurrence of the Minister in charge of the Corporation with the approval of the subject of Finance, borrow money for any Minister given with the concurrence of the of the purposes mentioned in subsection (2) Minister in charge of the subject of Finance. by the issue of stock under section 26 or in any other manner whatsoever. Borrowing 24. (1) The Board of Directors may, 25. Any funds of the Corporation which Investments of powers of the with the consent of the Minister, or in are not immediately required for the funds of the Board of Corporation. Directors. accordance with the terms of any general purposes of the business of the Corporation authority given by him, borrow temporarily, may be invested by the Board of Directors by way of overdraft or otherwise, such sums in such manner as such Board may as the Board may require for meeting the determine with the approval of the Minister. obligations of the Corporation: 26. (1) The Board of Directors— Petroleum Corporation Provided that the aggregate of the stock. amounts outstanding in respect of any (a) may create and issue any stock temporary loans raised by the Board of required for the purpose of Directors under this subsection shall not at exercising the powers of the Board any time exceed such sum as may be under subsection (3) of section 24, determined by the Minister in consultation and with the Minister in charge of the subject of Finance. (b) shall create and issue such stock as is required for the purpose of satisfying any right as 'to (2) The Board of Directors may, with the compensation under this Act which consent of the Minister given with the is to be satisfied by the issue of concurrence of the Minister in charge of the stock, subject of Finance, borrow money, otherwise than by way of a temporary loan and the stock so created and issued is in this under subsection (1), for all or any of the Act referred to as "Petroleum Corporation following purposes:— Stock ". (a) the provision of working capital; (2) Petroleum Corporation Stock shall be issued, transferred, dealt with, redeemed (b) the provision of money for meeting and cancelled in accordance with such terms any expenses incurred in connexion as may be determined by the Board of with any permanent work or other Directors with the approval of the Minister thing the cost of which is properly given with the concurrence of the Minister chargeable to capital; in charge of the subject of Finance. (c) the provision of money required for 27. (1) The Minister in charge of the Government the payment of any compensation subject of Finance shall guarantee the guarantee. under this Act which is payable in repayment of the principal of, and the cash by the Corporation ; payment of the interest on, any Petroleum Corporation Stock created and issued under (d) the redemption of any stock issued or section 26 (1) (b), and may, with the any loan raised by the Board of concurrence of the Minister, guarantee the Directors ; and repayment of the principal of, and the payment of the interest on, any Petroleum

(e) any other purpose for which capital Corporation Stock created and issued under moneys are properly applicable, section 26 (1) (a). including the repayment of any money temporarily borrowed under (2) Any sum required for the fulfilment subsection (1). of a guarantee provided under subsection (I) 1X/200 CEYLON PETROLEUM CORPORATION [Cap. 220 may, with the prior approval of Parliament, i m m o v a b l e p r o p e r t y of t h e be paid out of the Consolidated Fund. Corporation and liabilities arising under the Workmen's (3) Any sum paid out of the Consolidated Compensation Ordinance; and Fund in fulfilment of a guarantee provided under subsection (1) shall be repaid, (b) shall establish and maintain— together with interest thereon, at such rate as the Minister in charge of the subject of (i) a depreciation reserve to cover Finance may determine with the the depreciation of the concurrence of the Minister, by the movable and immovable Corporation in such manner and over such property of the Corporation, period as the Minister in charge of the and subject of Finance may with such (ii) a general reserve not exceeding concurrence determine. such amount as may from (4) Immediately after a guarantee is given time to time be determined by under subsection (1), the Minister in charge the Minister. of the subject of Finance shall lay a statement of the guarantee before (2) Such amount out of the surplus of the Parliament. revenue of the Corporation in any year remaining after the charges mentioned in (5) Where any sum is paid out of the section 28 have been satisfied as can be paid Consolidated Fund in fulfilment of a to the general reserve without causing it to guarantee provided under subsection (1), the exceed the amount determined by the Minister in charge of the subject of Finance Minister under paragraph (b) (ii) of shall forthwith lay before Parliament a subsection (1) shall be paid to that reserve statement that such sum has been so paid. and the balance, if any, of such surplus shall be paid to the Deputy Secretary to the Application of 28. The revenue of the Corporation in Treasury to be credited to the Consolidated the revenue of any year shall be applied in defraying the Fund. the Corporation following charges in the order of priority set out hereunder:— 30. (1) The Corporation shall cause its Accounts. accounts to be kept in such form and in (a) the working and establishment such manner as may be prescribed. expenses (including allocations to the insurance reserve and (2) The books and the accounts of the depreciation reserve), in connexion Corporation shall be kept at the head office, with the exercise and performance of the Corporation. of the powers of the Corporation, properly chargeable to revenue (3) The Corporation shall cause its books account; to be balanced as on the thiry-Hrst day of December in each year and shall, as soon as (h) the interest on any temporary loan may be thereafter, cause to be prepared a raised by the Corporation ; profit and loss account and a balance sheet containing a summary of the assets and (c) any sums required to be transferred to liabilities of the Corporation made up to any sinking fund or redemption date aforesaid. The aforesaidaccounts and fund; and the balance sheet shall be signed by the officer responsible for the preparation of (d) the interest on and the repayment of such accounts and balance sheet. the prinicipai of any Government loan to the Corporation. 31. The Corporation shall have its Audit of Reserves. 29. (1) The Board of Directors— accounts for each year audited before the accounts. thirtieth day of June of the succeeding year (a) may establish and maintain an by an auditor appointed by the Minister in i n s u r a n c e reserve to cover the consultation with the Auditor-General. The insurance of the movable and a u d i t o r s h a l l receive such 1X/201 Cap.220] CEYLON PETROLEUM CORPORATION remuneration from the funds of the had been or is being or is or was intended Corporation as the Minister may in to be used for— consultation with the Corporation determine. (a) the importation, exportation, storage, sale, supply or distribution of Auditor's 32. (1) The auditor appointed under report and petroleum; or section 31 shall examine the accounts of the transmission uf report and Corporation and ascertain the correctness of the balance sheet and furnish a report ( b ) o i l e x p l o r a t i o n or s i t i n g of balance sheet, &c., to the stating— n e w d i s t r i b u t i o n o u t l e t s of Minister petroleum; or (a) whether he has or has not obtained all the information and explanations (c) the carrying on of such other business required by him, and as may be incidental or conducive to the purposes referred to in (b) whether the balance sheet and paragraph (a) or paragraph (A), accounts referred to in the report are properly drawn up so as to exhibit a true and fair view of the is required for the purposes of the Corporation's affairs. Corporation. Such property is hereafter in this Act referred to as " notified property ". (2) The report of the auditor shall be transmitted to the Auditor-General and to (2) When a notice of claim is published the Corporation. under subsection (1) any property contained in or found on such notified property shall (3) The Corporation shall, on receipt of the auditor's report and the Auditor- be deemed to have been included in the GeneraFs comments, if any, thereon in each notice of claim. year, transmit such report together with the profit and lo&s account and the balance (3) The publication of a notice of claim sheet to which the report relates, and a made under subsection (1) in respect of any statement by the Corporation of its property shall be conclusive proof that such activities during the financial year to which property is required for the purposes of the such report relates, and of the activities (if Corporation. any) which are likely to be undertaken by the Corporation in the next financial year, to the Minister who shall before the thirty (4) Where a notice of claim is nublished [§23,38 of first day of December of the same year under subsection ( I ) , any officer of the 1971.1 cause copies thereof to be laid before Corporation authorized by the Minister Parliament for approval. may from time to time, by notice (hereafter in this Act referred to as a " notice of Exemption 33. The Personal Tax Act, No. 14 of disclaimer") published in the Gazette, from taxes. 1959,* shall not apply to the Corporation. [§57, 18 of disclaim the need, for the purposes of the 1965.] Corporation, of the whole or any part of the PART III property included in the notice of claim and specified in the notice of disclaimer. ACQUISITION, REQUISITION, AND USE OF PROPERTY FOR OR BY THE CORPORATION (5) No person shall lease, hypothecate, Notice of claim 34. (1) Any officer of the Corporation alienate, transfer or dispose of in any manner or disclaimer in whatsoever to any person other than the respect of authorized by the Minister may, by notice property (hereafter in this Act referred to as a Corporation the whole or any part of— required for the purposes of " notice of claim ") published in the Gazette, the (a) any property which is included in a Corporation. declare that any movable or immovable notice of claim and is not disclaimed [§7,l.aw2 1976.] property, o t h e r t h a n m o n e y , w h i c h by a notice of disclaimer, or * See 1-ist of Enactments omitted from the Revised Edition. IX/202 CEYLON PETROLEUM CORPORATION [Cap.220 (b) any right or interest in respect of or (c) providing for the service of copies of incidental to the property specified such report or any amendment in paragraph (a). thereof on persons having an interest in the property to which the (6) Any lease, hypothecation, alienation, report relates; transfer or disposal made or effected in contravention of the provisions of (d) requiring persons on whom copies of subsection (5) shall be null and void. the report or any amendment thereof have been served to notify (7) Any person shall, if requested by any the Corporation whether or not officer authorized by the Minister, furnish they are in agreement with such to such person as shall be specified in the report or amendment, and, if they request information with regard to any are not in agreement, to specify any movable or immovable property included in objections they may have and the a notice of claim as shall be so specified. grounds of such objections and to produce all documents relied on by (8) Any person who— them in support of such objections; (a) leases, hypothecates, transfers or (e) prohibiting the making of any disposes of any notified property in improvements or alterations to any contravention of subsection (5); or • notified property without the prior (b) fails to furnish wilfully the approval of the Corporation ; and information referred tff^ in subsection (7), or who wilfully (f) providing for all matters connected withholds all or any part of such with or incidental to the matters information, or who furnishes aforesaid. information knowing such information to be false; or 34A. Where any petroleum is found Petroleum under the surface of the earth on any found under the surface of (c) wilfully or negligently destroys or property in Sri Lanka, such petroleum shall, the earth to damages or causes to be destroyed notwithstanding any right of ownership or vest in the or damaged any notified property; otherwise which any person may have to the Corporation. [§8, Law 2 of or soil under which such petroleum is found or 1976.] situated, vest in the Corporation. (d) removes, changes the situation, or alters the character or causes such 35. (1) The Minister may, by Order Compulsory removal, change or alteration of (hereafter in this Act referred to as a transfer to the Corporation of any notified property, " vesting Order") published in the Gazette, certain vest in the Corporation, with effect from property. shall be guilty of an offence under this Act. such dale as shall be specified in the Order, any such notified property as has not been (9) Regulations may be made under this disclaimed by a notice of disclaimer or any Act— right, interest or benefit in such notified, (c) empowering any person authorized in property derived under the terms of any that behalf by the Corporation to arrangement, agreement (formal or inspect any notified property, and informal), lease or notarially executed requiring the persons in whose instrument subsisting on the date of possession or custody such property publication of the notice of claim. is to allow and assist the inspection thereof, (2) Before a vesting Order takes effect, the Minister may from time to time alter, by (b) providing that a report as to the Order published in the Gazette, the date on condition of any notified property which such vesting Order takes effect. may be made, and may be subsequently amended, by or under (3) A vesting Order shall have the effect the authority of the Corporation ; of giving the Corporation absolute title to 15- IX/203 Cap.220] CEYLON PETROLEUM CORPORATION any property specified in the Order with owner of such property, was entitled to effect from the date specified therein'and possession of or any other right, title or free from all encumbrances : interest in such property under the terms of any arrangement, agreement (formal or Provided however, where any right, informal), lease or notarially executed interest or benefit in any notified property is instrument that arrangement, agreement vested in the Corporation, a vesting Order (formal or informal), lease or notarially shall have the effect of giving the executed instrument shall be deemed for all Corporation such right, interest or benefit purposes to have expired on that date. with effect from the date specified in the Order. (7) Where any property is derequisitioned Requisition of 36. (1) The Minister may, by Order by a derequisitioning Order such Order shall rolified (hereafter in this Act referred to as a be deemed to have the effect of reviving any property and arrangement, agreement (formal or compulsary " requisitioning Order") published in the acquisation of Gazette, requisition, with effect from such informal), lease or notarially executed requisitioned dale as shall be specified in the Order, any instrument subsisting on the date on which property. notified property as is immovable property, the property was requisitioned, and any in order that it may be temporarily used by question which may arise as to any right, the Corporation for the purposes of its title or interest, in or. over that property business. shall be determined accordingly. (2) Before a requisitioning Order takes (8) Notwithstanding anything to the effect, the Minister may from time to time contrary in this Act or in any other law the alter, by Order published in the Gazette, the provisions of subsection (7) shall not apply date on which such requisitioning Order to any arrangement, agreement (formal or takes effect. informal), lease or notarially executed (3) A requisitioning Order shall have the instrument affecting any movable or effect of authorizing the Corporation, with immovable property of the State subsisting effect from the date specified in the Order, on the date on which the property was to take possession of the property specified requisitioned. in the Order and to use such property temporarily for the purpose of the business (9) Where any property requisitioned for of the Corporation in any manner the Corporation is permanently required for whatsoever. the purpose of the business of the Corporation, such property may be vested [§9, Law 2 of (4) Where any property is requisitioned in the Corporation by a vesting Order. 1976.] by a requisitioning Order, the Minister may, by Order (hereafter in this Act referred to as "derequisitioning Order") published in the 37. (1) Notwithstanding that any Revocation of Gazette, derequisition with effect from such movable or immovable property has vested vesting Order. [§10, Law 2 of date as shall be specified in the in the Corporation by virtue of a vesting 1976.) derequisitioning Order, such property or Order, the Minister may at any time before such part of the property as shall be an award as to compensation is made in specified therein respect of that property under section 65, by subsequent Order published in the Gazette (5) Before a derequisitioning Order takes (hereafter in this section referred to as a effect, the Minister may from time to time " divesting Order") revoke that vesting alter,, by Order published in the Gazette, the Order in respect of that property or such date on which such derequisitioning Order part of that property as shall be specified in takes effect. that divesting Order. (6) Where, immediately before the date (2) The following provisions shall apply [§10,Law2of on which any property is requisitioned in any case where a vesting Order in respect 1976] under this Act, a person, other than the of any movable or immovable property is IX/204 CEYLON PETROLEUM CORPORATION [Cap.220 revoked by a divesting Order:— 37A. Where a vesting Order under Copies of section 35 or a divesting Order under Gazettes (a) that property or the specified part of containing that property, as the case may be, section 37 in respect of any land or part vesting Orders thereof is published in the Gazette, the and divesting shall be deemed never to have Corporation shall cause a copy of such Orders to be vested in the Corporation by virtue transmitted lo Gazette, to be transmitted to the Registrar the Registrar of that vesting Order, and shall of Lands of the district in which the land or of Lands who cease to be notified property, and part thereof is situated, and such Registrar shall duly any question which may arise as to register them. shall duly register such copy under the [§11, Law 2 of any right, title or interest, in or over Registration of Docitments Ordinance as an 1976.] that property or the specified part instrument ai'lecting land. of that property, as the case may b e , s h a l l be d e t e r m i n e d accordingly; 38. (1) Any person specially or Taking generally authorized in that behalf by the possession of property vested (b) that property or the specified part of Minister or the Chairman of the Board of in, or that property, as the case may be, Directors may take possession of any requisitioned . shall be deemed to have been and to property vested in or requisitioned for the for.the Corporation. be property which was requisitioned Corporation. by a requisitioning Order with effect from the date on which that (2) Any officer of the Corporation vesting Order look effect and was authorized in that behalf by the Chairman d e r e q u i s i t i o n e d by a of the Board of Directors shall, by notice derequisitioning Order with effect given to the person in occupation or in from the date of the revocation of possession of any property vested in or that vesting Order; requisitioned for the Corporation or exhibited in some conspicuous place on or (c) all claims made under this Act to the in the vicinity of such property— compensation payable in respect of that property and all proceedings taken under this Act in regard to (a) inform that such authorized officer such claims before that vesting intends to take possession of such Order was revoked shall be deemed property for and on behalf of the to be null and void, and fresh Corporation on such dale and at claims to compensation in respect such time and place as shall be of that property or the specified specified in the notice, and part of that property may be made under this Act and fresh (b) require any person interested or his proceedings in regard to such fresh authorized agent to be present on claims may be taken under thie. the date and at the lime and place Act: so specified, and to allow and assist such authorized officer to take Provided that nothing in the possession of such property for and preceding provisions of this on behalf of the Corporation. subsection shall be deemed to revive any arrangement, agreement Where such property is a motor vehicle, the (formal or informal), lease or notice aforesaid may be given to the notarially executed instrument registered owner of that vehicle within the entered into in respect of that meaning of the Motor Traffic Act instead of property by any foreign-owned being given to the person in possession of petroleum company and subsisting that motor vehicle. on the date on which that property was vested. (3) Any notice required to be given to (3) The preceding provisions of this any person under the preceding provisions section shall have effect notwithstanding of this section shall be deemed to be given anything in any other provisions of this Act to him if such notice is sent to him by or in any other written law. registered letter through the post. IX/205 Cap. 220] CEYLON PETROLEUM CORPORATION (4) Any person who contravenes any apprehends that he will be unable to take requirement of any notice given to him possession of such property because of any under this section shall be guilty of an obstruction or resistance that has been or is offence under this Act. likely to be offered, on his making an application in that behalf to the Magistrate's Provisions of 38A. (1) The provisions of sections 38 Court having jurisdiction over the place selections38 and and 39 shall, mutatis mutandis, apply to the 39 to apply where that property is kept or situated, the mutatis taking of possession of any properly Magistrate shall issue an order of the Court mutandis to belonging to the Corporation on the directing the Fiscal to deliver possession of taking termination of any agreement under which posession of that property to him for and on behalf of property such property was let or leased for the the Corporation, belonging to purpose of being used as a distribution the outlet of petroleum. Corporatin (3) Where an order under subsection (2) on termination is issued to the Fiscal by a Magistrate's of agreement (2) Where an agreement under which any of hire or lease property belonging to the Corporation was Court, he shall forthwith execute that order (§i2,Law2of let or leased for the purpose of being used as and shall in writing report to the Court the 1976.] a distribution outlet of petroleum is manner in which that order was executed. terminated, the person in occupation of such properly shall remove or cause to be (4) Where an order under subsection (2) removed from such property any fixture or is issued to the Fiscal by a Magistrate, the movable property belonging to him and execution of such order shall not be stayed hand over vacant possession of such in any manner by reason of any steps taken property to the authorized officer on or or proposed to be commenced in any court before the date specified in the notice given with a view to questioning, varying or under section 38- setting aside such order. (3) Any person who fails to comply with (5) For the purpose of executing an order the requirements of subsection (2) shall be issued by a Magistrate's Court under guilty of an offence and shall, on conviction subsection (2), the Fiscal or any person after trial before a Magistrate, be liable to acting under his direction may use such imprisonment of either description for a force as may be necessary to enter any place term not exceeding six months or to a fine where any movable property to which that not exceeding one thousand rupees, and in order relates is kept and seize such movable the case of a continuing offence to an property, or to enter any land, building, additional fine not exceeding fifty rupees for structure or other immovable property to each day during which such offence is continued after conviction thereof. which that order relates and to eject any person in occupation thereof, and to deliver Prevention of 39. (I) Every person who— possession of such movable property, land, or obstruction building, structure or other immovable to taking property to the person who is authorized to possession of (tf) prevents, obstructs or resists, or property for or take possession thereof for and on behalf of on behalf of (b) directly or indirectly causes anyone to the Corporation. the Corporation. prevent, obstruct or resist, 40. (1) Where any immovable property, Acquisition of any person from or in taking possession, other than any notified property, is required immovable property under under section 38, of any property for and on to be acquired for the purpose of the the Land behalf of the Corporation shall be guilty of business of the Corporation and the Acquisition an offence under this Act. Minister, by Order published in the Gazette, Act for the Corporation- approves of the proposed acquisition, that (2) Where an officer authorized by the property shall be deemed to be required for Minister or the Chairman of the Board of a public purpose and may accordingly be Directors under section 38 to take acquired compulsorily under the Land possession of any property for and on Acquisition Act and be transferred to the behalf of the Corporation is unable or Corporation. IX/206 CEYLON PETROLEUM CORPORATION [Cap.229 (2) Any sum payable for the acquisition provisions of subsection (I) (c) or subsection of any immovable property under the Land (1) (d) or who furnishes information [§5,5 of 1963.] Acquisition Act, for the Corporation, shall knowing such information to be false or be paid by the Corporation. obstructs any person in the exercise of the powers conferred on him by subsection (1) Special grant 41. Where any immovable property of (a) or subsection (!)(&) shall be guilty of an or lease of the State is required for the purpose of the Stale property offence under this Act. to the business of the Corporation, such purpose Corporation. shall be deemed to be a purpose for which a 43. (1) Any person who carries on Power of special grant or lease of such property may business as an importer, exporter, seller, Corporation to make use of be made under section 6 of the State Lands supplier, or distributor of petroleum shall, if equipment and Ordinance, and accordingly the provisions a written request in that behalf is made to facilities of of that Ordinance shall apply to a special him by the Corporation, make available for other persons. grant or lease of such property to the use by the Corporation any equipment or Corporation. facilities maintained by him for the purpose Power to 42. (1) The Chairman of the Board of of that business subject to such terms and require Directors or any person authorized in that conditions (including terms as to the charges information behalf by such Chairman may— to be made for such use) as may be and to inspect. determined by agreement between that (a) inspect any movable or immovable person and the Corporation or, in the property which had been, or is absence of such agreement, by arbitration as being or is or was intended to be, hereinafter provided. used for the importation, exportation, storage, sale, supply or (2) Where the terms and conditions distribution of petroleum; or subject to which any equipment or facilities of any person referred to in subsection (1) is (b) inspect any movable or immovable or arfe to be used by the Corporation have property which had been, or is to be determined by arbitration, the being or is or was intended to be, arbitration shall be conducted— used for the carrying on of such other business as may be incidental (a) by a single arbitrator nominated by or c o n d u c i v e to the purposes agreement between that person and [§5, 5 of 1963.] referred to in paragraph (a); the Corporation; or (c) request any person to furnish (b) in default of such agreement, by two information with regard to any arbitrators nominated respectively matter within his knowledge b y t h a t p e r s o n a n d the relating to any movable or Corporation. immovable property referred to [§5, 5 of 1963.] in paragraph (a) or paragraph (b); (3) Where in any case referred to in and paragraph (b) of subsection (2) there is a difference of opinion among the two [§5, 5 of 1963.] (d) request any person to furnish arbitrators in respect of any matter, the information with regard to any matter shall be referred for decision by an matter within his knowledge umpire chosen by them, and, if they are relating to the business of unable to agree, by an umpire appointed for importation, exportation, storage, the purpose by the District Court of sale, supply or distribution of petroleum, whether carried on by Colombo on application made by any party himself or any other person, and to the arbitration proceedings. the persons employed for the purposes of such business including No stamp duty shall be payable in respect details of their salaries, gratuities, of any application under this subsection. compensation, or other benefits accruing to them. Each party shall be liable to pay in equal- shares the amount of the fee payable to an (2) Any person who fails, without umpire chosen or appointed under this reasonable cause, to comply with the subsection. IX/207 Cap.220] CEYLON PETROLEUM CORPORATION (4) The decision of a single arbitrator or under the authority of the where there are two arbitrators their agreed Corporation under any regulation decision, or in any case referred to in made under this Act, if a copy of subsection (3) the decision of an umpire, that report has not already been shall be final and conclusive for the served on the claimant; purposes of this section and shall be binding on the Corporation and on the person (b) a copy of any such assessment of the whose equipment or facilities is or are to be compensation payable under this used by the Corporation. Act in respect of the aforesaid property as has been made by or (5) Regulations may be made in respect under the authority of the of all matters relating to or connected with Corporation; the conduct of proceedings upon arbitration under this section. (c) a notice requiring the claimant, within the time specified in the notice :— PART IV (i) to furnish to the Corporation a COMPENSATION written statement setting out whether or not he agrees with Notice to 44. Where any property is vested in or the report referred to in the persons requisitioned for the Corporation, the entitled to preceding paragraph (a) and make claims to Chairman of the Board of Directors shall, the assessment referred to in the by notice published in the Gazette and in the preceding paragraph (b) compensation such other manner as may be determined by payable under and, if he does not so agree, this Act in him, direct every person who was interested any objections that he may respect of any in such property immediately before the have to such report and property vested date on which such property was so vested in or assessment, and the grounds requisitioned or requisitioned to make, within a period of of such objections; and for the one month reckoned from the date specified Corporation. in the notice, a written claim to the whole or (ii) to produce to the Corporation any part of the compensation payable under all documents, and in this Act in respect of such property, and to particular the document in specify in the claim— regard to the condition of the aforesaid property, relied on (a) his name and address, by him in support of any such objection. (b) the, nature of his interest in such property, 46. (I) T h e Chairman of t h e Reference to (c) the particulars of his claim, and C o r p o r a t i o n s h a l l r e f e r t p t h e the Compensation Compensation Tribunal for determination Tribunal for an (d) how much of such compensation is the amount of the compensation payable in award as to claimed by him. respect of any property vested in or compensation in respect of requisitioned for the Corporation and shall any property Provisions to 45. Upon the receipt of any claim made transmit to the Tribunal all claims made to vested in or be complied under section 44 to the compensation such compensation, together with all requisitioned with by the for the payable under this Act in respect of any documents furnished by the claimants in Corporation. Chairman on the receipt of property vested in or requisitioned for the support of their claims, and all documents claims to Corporation, the Chairman of the Board of copies of which have been served on or compensation. transmitted to the claimants by the Directors shall cause the following documents to be sent to the claimant by Corporation. registered letter through the post :— (2) A reference made under subsection (1) (a) a copy of any such report in regard to to the Compensation Tribunal is hereafter the condition of the aforesaid in this Act referred to as a " reference for an^ property as has been made by or award as to compensation ". IX/208 CEYLON PETROLEUM CORPORATION [Cap.220 Compensation 47. (1) The amount of compensation to reasonably be expected to be payable by a in respect of be paid under this Act in respect of any tenant in occupation of such property, properties vested in the property vested on any date in the during the period of the requisition, under a Corporation. Corporation shall be the actual price paid lease granted immediately before the by the owner for the purchase of such beginning of that period whereby the tenant property and an additional sum which is undertakes to pay all usual rates and taxes equal to the reasonable value of any and to bear the cost of the repairs and additions and improvements made to such insurance and the other expenses, if any, property by any person who was interested, necessary to maintain such property in a or if such purchase price is not state to command that rent. ascertain able, be an amount equal to the price which such property would have (2) The compensation under subsection fetched if it had been sold in the open market on the day on which the property (1) in respect of any property shall be was vested in the Corporation ; considered as accruing due from day to day during the period of the requisitioning of Provided that where such property such property and shall be apportionable in consists of movable property or anything respect of time accordingly. attached to the earth or permanently fastened to anything attached to the earth, a reasonable amount for depreciation shall be 48A. In determining compensation In determining deducted from the amount which represents payable in respect of any land vested in, or compensation, certain the price actually paid for its purchase by requisitioned for, the Corporation,— buildings not the person entitled to the compensation to be taken into account payable in respect of such property, if such (i) where any building had been and certain compensation is based on such price; constructed on, or any other deductions to be made. improvements had been effected to, [§2, Law 50 of Provided, further, that where such 1973.] property consists of land or buildings, the such land, on any date prior to the [§3, Law 50 of amount of compensation to be paid shall be date on which such land was so 1973.] an amount equal to the price which such vested or requisitioned, by any land or buildings would have fetched if such foreign-owned petroleum company, land or buildings had been sold in the open no account shall be taken of such market on the day on which such land or building or improvements in the buildings was or were vested in the computation of the market value of Corporation. such land under section 47 or ir the (2) Where any right, interest or benefit in rent payable under section 48, as any movable or immovable property derived the case may be, and under the terms of any arrangement, agreement (formal or informal), lease or (ii) any sum which had been paid in notarially executed instrument is vested in advance to the owner of such land t h e C o r p o r a t i o n , t h e a m o u n t of as rent for any period after the date compensation to be paid under this Act on which such land was so vested, shall be the actual price paid by the holder or requisitioned, as the case may be, for the acquisition of such right, interest or shall be deducted from the amount benefit: of the compensation. Provided that a proportionate amount shall be deducted on account of the period 49. (1) The amount of compensation to Proportionate for which the holder has enjoyed such right, be paid to any person in respect of any payment of interest or benefit. compensation, property requisitioned for or vested in the and interest on Compensation 48. (1) The amount of compensation to Corporation shall be proportionate to the compensation, in respect of until date of property be paid in respect of any property interest such person had in such property on payment. requisitioned requisitioned for the Corporation shall be a the date on which the property was for the s u m equal to the rent w h i c h might r e q u i s i t i o n e d f o r or v e s t e d in the Corporation. IX/209 Cap.220] CEYLON PETROLEUM CORPORATION Corporation: terminated under the provisions of section 5J, then, from the amount Provided, however, where property of such compensation, the requisitioned is subsequently vested in the Corporation shall pay the sum so Corporation, the apportionment of the specified to the Commissioner of compensation in respect of such property Labour for the payment of such shall be proportionate to the interest any gratuity or other benefit, or person had in such property on the date on which such property was requisitioned for (b) where the amount of such the Corporation. compensation has been applied in payment of any sum referred to in (2) Any compensation payable under this the preceding paragraphs (a) and Act shall carry interest, as from the date on (aa), the balance if any, of that [§6,5 of 1963.] which it accrues due until payment, at such amount remaining after it has been rate as may be determined by the Minister so applied shall be paid by the with the concurrence of the Minister in Corporation to the person or charge of the subject of Finance. persons entitled thereto. When 50. The compensation payable in respect compensation of any property vested in the Corporation 53. The mode and manner of payment Mode of in respect of of compensation under this Act shall be payment of vested properly shall be considered as accruing due from the date on which that property was so vested. determined by the Minister in consultation compensation. accrues due. with the Minister in charge of the subject of Finance. Right lo 51. No compensation in respect of any compensation. property vested in or requisitioned for the 54. Where any compensation payable to Provision for Corporation shall be paid to any person any person under this Act is not accepted by cases where under this Act unless such person is entitled compensation him when it is tendered to him or where is not accepted, to such compensation according to an such person is dead or not in existence or &c. award (hereafter in this Act referred to as an not known, it shall be paid to any District [§4. Law 50 of " award as to compensation ") made by the 1973.] Court or Primary Court, according as the Compensation Tribunal under this Act. amount of the compensation exceeds or does not exceed one thousand five hundred Deductions 52. The following provisions shall apply rupees, to be drawn by the person or from in any case where a person is entitled to compensation. persons entitled thereto. compensation in respect of any property rested in or r e q u i s i t i o n e d f o r t h e 54A. Notwithstanding anything to the Compensation Corporation:— contrary in this Act. or in any other written payable in respect of (a) where any sum has been certified law, the Corporation may pay to any person property vested under the hand of the as compensation in respect of property in or Commissioner-General of Inland vested in, or requisitioned for, the requisitioned for the Revenue to the Corporation to be Corporation under this Act, where such Corporation due from such person as tax on vesting or requisitioning is made on or after on or after income or profits, or as personal the first day of August, 1970, such amount August 1,1970- [§5. Law 50 of tax, then, from the amount of the as the Minister may, pursuant to any 1973.] compensation to which such person agreement reached between the Minister is entitled, the Corporation shall and such person in respect of the amount of pay the sum so specified to the compensation for such property, direct the Commissioner-General of Inland Corporation to pay. Revenue, or 54B. (I) The Chairman of the Board of Power of the [§6,5ofl963.] (aa) where any sum has been certified Directors may before the determinatibn of a Chairman of the Board of under the hand of the claim for compensation under this Act pay Directors to Commissioner of Labour to the to a person whom he considers entitled to pay advances Corporation to be due from such such compensation an advance, ^nd any on account of compensation. person as a gratuity or other sum so paid shall be deducted from the [§5, Law 50 of monetary benefit to any other amount of the compensation awarded 1973.] person whose employment has been to him. IX/210 CEYLON PETROLEUM CORPORATION [Cap. 220 (2) Where any sum is paid after the date (2) The remuneration of the members of of commencement of this Act to any person the Tribunal and other expenses of the as an advance on account of compensation Tribunal shall be paid by the Secretary to to be paid to such person under this Act in the Ministry out of the funds provided for respect of any land vested in or the purpose by the Corporation. requisitioned for the Corporation, such payment shall be deemed to have been paid 57. (1) The Chairman shall convene Meetings of the under subsection (1) and accordingly such meetings of the Tribunal for the Tribunal. [§8, Law 50 of sum shall be deducted from the amount of c o n s i d e r a t i o n and d e t e r m i n a t i o n of 1973.1 the compensation awarded to such person. references for awards as to compensation made to the Tribunal. Finality as to 54C. Where compensation under this payment of Act has been paid in respect of any land in (2) Three members of the Tribunal, one compensation. [§5, Law 50 of accordance with the provisions of this Act, of whom shall be the Chairman or Vice- 1973.] no further claim against the Corporation Chairman, shall be summoned to a meeting either by the person to whom such of the Tribunal. The members to be compensation was paid or by any other summoned shall be determined by the person shall be allowed and no action shall Chairman. be instituted against the Corporation in any court in respect of such further claim. (3) Where the Chairman or the Vice- Chairman is summoned to a meeting of the PART V Tribunal, the Chairman or Vice-Chairman. as the case may be, shall preside at that COMPENSATION TRIBUNAL meeting, Constitution of 55. (1) There shall be established for the (4) A member of the Tribunal who is the purposes of this Act, a Compensation Compensation interested in any matter which is a subject of Tribunal. Tribunal (hereinafter referred to as the a reference for an award as to compensation [§6. Law 50 of " Tribunal"), consisting of five members or who has been consulted as an attorney- 1973.] appointed by the President of whom at least at-law or in any other capacity in regard to three shall be persons with judicial or legal that matter by or on behalf of any person experience. interested therein shall not participate in any proceedings of a meeting of the (2) A person shall be disqualified for Tribunal on such reference. being appointed or being a member of the Tribunal if he is a Member of Parliament or (5) A meeting of the Tribunal may from a member of the Corporation. time to time be postponed or adjourned. (3) A member of the Tribunal with judicial or legal experience shall be 58. (1) Every reference for an award as Proceedings appointed to be the Chairman, and another to compensation shall be considered and before Tribunal. member with similar experience shall be determined at a meeting of the Tribunal. [§9, Law 50 of appointed to be the Vice-Chairman, of the 1973.] Tribunal by the President. (2) The Chairman shall fix a date, time and place for the consideration and (4) Every member of the Tribunal shall, determination by the Tribunal of each unless he earlier vacates office or is removed reference for an award as to compensation. therefrom by the President, hold office for a period of three years. Any member of the 59. (l)'The Chairman or the Vice- Power to Tribunal who vacates office by effluxion of Chairman of the Tribunal shall, for the summer witnesses, &c. time shall be eligible for reappointment. purposes of the consideration and [§10, Law 50 of determination of any reference for an award 1973.] Remuneration 56. (1) The members of the Tribunal as to compensation, have all the powers of a of members of shall be remunerated at such rates as may be District Court— the Tribunal and expenses determined by the Minister with the of the concurrence of the Minister in charge of the (a) to summon and compel the Tribunal. subject of Finance. attendance of witnesses, [§7, Law 50 of 1973.] IX/211 Cap.220] CEYLON PETROLEUM CORPORATION (b) to compel the production of any property vested in or requisitioned for documents; and the Corporation is served on any claimant to compensation in respect of such property, (c) to administer any oath or affirmation then, in so far as that claimant is concerned, to witnesses. that report shall, in any proceedings relating to the claim of the claimant before the (2) Every person who attends a meeting Tribunal, be prima facie evidence of the of the Tribunal as a witness shall be paid as facts stated therein until the contrary is travelling and other expenses such sum as proved. shall be determined by the Chairman or in his absence the Vice-Chairman of the (2) Where a copy of the Corporation's Tribunal. assessment of compensation in respect of any property is served on any claimant to Persons giving 60. Every person giving evidence on any such compensation, that assessment shall, in evidence bound matter before a meeting of the Tribunal to stale the any proceedings relating to the claim of the truth. shall be bound to state the truth on such claimant before that Tribunal, be prima matter. facie evidence of the facts stated therein until the contrary is proved. Determination 61. (1) The determination made at a of the meeting of the Tribunal on any matter Tribunal. (3) Where a report in regard to the considered at that meeting shall be deemed condition of any property vested in or to be the determination of the Tribunal on requisitioned for the Corporation, or the that matter. Corporation's assessment of any compensation, is prima facie evidence of the (2) Where the members of the Tribunal facts stated therein under the preceding who consider any matter disagree with provisions of this section in any proceedings regard to the determination on that matter, relating to a claim to compensation before the determination of the majority of them the Tribunal, then, the claimant shall not be shall be the determination of the Tribunal entitled to produce in those proceedings any on that matter, and, where the members are document in support of any objection to equally divided in their opinion, the such report OF assessment unless that determination supported by the Chairman document had been produced to the of the meeting by which that matter is Corporation as required by or under this considered shall be the determination of the Act. Tribunal on that matter. 65. (1) Where a reference for an award An award as to (3) Every determination of the Tribunal as to compensation is made to the Tribunal compensation by the Tribunal shall contain the reasons therefor. in respect of any property vested in or on a reference. requisitioned for the Corporation, the Tribunal may 62. Subject to the provisions of this Act Tribunal shall, after considering all such regulate its in respect of procedure, the Tribunal may procedure at matters and hearing all such witnesses as meetings. lay down the procedure to be observed at may be necessary for the purpose and after meetings of the Tribunal. complying with the provisions of section 63 and section 64, make, save as otherwise Chairman of 63. Where a reference for an award as to provided in subsection (2), an award the Board of compensation is made to the Tribunal, the Directors and determining— claimants to Tribunal shall, before making such award compensation give the Chairman of the Board of Directors (a) whether or not each person who has to be given an and every person who has made a claim to made a claim to compensation is a opportunity of being heard compensation an opportunity of being person entitled to compensation, before the heard either in person or by an agent and if so, the capacity in which he is making of an authorized in that behalf. so entitled, award. (b) the amount of the compensation Provision in 64. (1) Where a copy of any report payable in respect of such property regard to made by or under the authority of the in accordance with the provisions of evidence. Corporation in regard to the condition of this Act, and IX/212 CEYLON PETROLEUM CORPORATION [Cap.220 (c) t h e a p p o r t i o n m e n t of t h e (c) the spot price or rate, compensation among the persons entitled to compensation: (d) the maximum amount or percentage of discount or rebate, Provided that where there is a dispute as to the persons entitled to such compensation (e) the formula fixing the price, or as to the apportionment of such compensation among the persons entitled to at which such petroleum shall be sold, such compensation, the Tribunal shall defer supplied or delivered. making an award and shall refer the dispute for decision to the District Court within (2) Any Order under subsection (I) whose local jurisdiction such property, may— being immovable property, is situate, or being movable property, was kept at the (a) be limited in operation to petroleum time it was so vested, and shall, after such sold, supplied or delivered by the Court makes its decision on such dispute, Corporation, or make an award in accordance with such decision. (b) be made applicable to any petroleum sold, supplied or delivered whether (2) Where no person makes a claim to by the Corporation or any other compensation in respect of any property person, vested in or requisitioned for the Corporation, it shall not be necessary to (c) be limited in operation to any determine in the award under this section particular place or area and in the matters specified in paragraphs (a) and duration for any specified time or (c) of subsection (1) and to comply with the period, provisions of subsection (3) relating to the giving of notice of the award to claimants to (d) prescribe the conditions of sale, compensation. s u p p l y or d e l i v e r y of a n y petroleum. (3) The Tribunal shall cause written notice of its award to be given to the (3) Every Order under this section shall Chairman of the Board of Directors and the come into operation when such Order is claimants to compensation. made and signed by the Minister or on such later date as may be specified in the Order. (4) An award of the Tribunal shall be final and shall not be called in question in (4) After an Order has been signed by the any court. Minister, public notice thereof shall forthwith be given— PART VI (a) by publication of the Order in the Gazette; and GENERAL (b) in such other manner as may be Order fixing 66. (1) The Minister may, with the prescribed. prices and concurrence of the Minister in charge of the prescribing conditions of subject of Finance, by a Petroleum Price (5) An Order under this section, upon sale of Order (hereafter referred to as an " Order "), petroleum. publication in the Gazette, shall be deemed in respect of petroleum of any class or to be as valid and effectual as if it were description referred to in the Order, specify herein enacted. or determine any one or more of the following matters;— (6) Any Order under subsection (1) may (a) the maximum spot price or rate, be altered, varied, modified or revoked by the Minister, with the concurrence of the (b) the minimum spot price or rate, Minister in charge of the subject of Finance. IX/213 Cap.220] CEYLON PETROLEUM CORPORATION (7) Any Order under this section may (5) Notification of the date on which any provide that any such provisions of the regulation made by the Minister is so Control of Prices Act or any regulations deemed to be rescinded shall be published in made thereunder, as may be specified in the the Gazette. Order shall, with such modifications as may be so specified, apply in relation to that (6) Any regulation made by the Minister Order. shall, when approved by Parliament, be as valid and effectual as if it were herein Regulations *68. (1) The Minister may make enacted. Notification of such approval shall regulations for the purpose of carrying out be published in the Gazette. or giving effect to the principles and provisions of this Act. 69. (1) Every person who— Offences and penalties. (2) In particular and without prejudice to (a) contravenes or fails to comply with the generality of the powers conferred by any section or provision of this Act subsection (1), the Minister may make or any regulations made thereunder regulations in respect of the following or any order or directions lawfully matters:— given under this Act or any (a) any matter required by this Act to be regulations made thereunder shall prescribed or in respect of which be guilty of an offence under this regulations are authorized by this Act; Act to be made ; (b) aids or abets any person or persons in (b) the establishment and administration the commission of an offence under of a Reward Fund for such this Act shall be guilty of an offence purposes as may be prescribed; under this Act (c) the prevention of the theft of, or a (bb) contravenes or fails to comply with [§9,5 of 1963.] damage to, or the commission of the provisions of any Order made nuisance on, any property used by by the Minister under section 5c the Corporation, and the snail be guilty of an offence under imposition of penalties on, and the this Act; recovery of compensation from, (bbb) sells, alienates or disposes of any [§14, Law 2 of persons responsible for such theft, equipment of the Corporation 1976] damage or nuisance; without the prior authority of the (d) any matter regarding the assessment Corporation, or causes wilful and payment of compensation damage to or defaces any such under this Act, equipment or contaminates any petroleum product, or sells or is concerned in the sale of any (3) Every regulation made by the petroleum product, having reason Minister shall be published in the Gazette to believe that it is contaminated, and shall come into operation on the date of shall be guilty of an offence under such publication or on such later date as this Act. may be specified in the regulation. (c) attempts to commit or does any act (4) Every regulation made by the preparatory to or in furtherance of Minister shall, as soon as convenient after the commission of an offence under its publication in the Gazette, be brought this Act shall be guilty of an offence before Parliament for approval. Any under this Act. regulation which is not so approved shall be deemed to be rescinded as from the date of disapproval, but without prejudice to (2) Every person who commits an offence anything previously done thereunder. under this Act shall, on conviction after • Section 67 is repealed by Law No. 2 of 1976. IX/214 CEYLON PETROLEUM CORPORATION [Cap. 220 summary trial before a Magistrate— offence was committed without his consent or connivance and that he exercised all such (a) for the first offence be liable to diligence to prevent the commission of that imprisonment of either description offence as he ought to have exercised having for a period not exceeding one year regard to the nature of his functions and in or a fine not exceeding one all the circumstances. thousand rupees, or both such imprisonment and fine; 72. (1) Where any property is subject to Provisions in a mortgage or lease at the time when that regard to (b) for a subsequent offence, be punished mortgage and property is vested in the Corporation under leases. with imprisonment of either this Act, the rights of the mortgagee or of description for a term not exceeding the purchaser of the mortgaged property two years, and shall, in addition, be under a mortgage decree, or of the lessee, liable to a fine not exceeding two shall, notwithstanding the provisions of thousand rupees. section 35 (3), be limited to any sum paid under this Act as compensation in respect of (3) Notwithstanding anything to the such properly. contrary, every offence under this Act shall be a cognizable offence within the meaning (2) Nothing in this Act shall affect the and for the purposes of the Code of right of a mortgagee to have recourse to any Criminal Procedure Act. property or security other than that vested Power of 70. The Board of Directors may in the Corporation under this Act for the Board of compound any claim or demand made recovery of the debt secured by the Directors to against the Corporation by any person for mortgage. compound claims. such sum or other compensation as the (3) Where any property is subject to an Board may deem sufficient. arrangement, agreement (formal or Corporation 70A. (1) The claims of the Corporation informal), lease, or notarially executed exempted from against any person whomsoever, for the instrument at the time when that property is the provisions requisitioned for the Corporation under this of the recovery of any sum of money which is due Prescription to the Corporation, shall not be held to be Act, the rights of the parties to such Ordinance. barred, limited or prejudiced by any arrangement, agreement, lease or instrument [§15, Law 2 of shall, notwithstanding the provisions of 1976.] provisions of the Prescription Ordinance. section 36 (6), be limited to any sum paid (2) The provisions of subsection (1) of under this Act as compensation in respect of this section shall— that property. (a) be deemed for all purposes to 73. Any company or other body of Power of have come into operation on persons may, notwithstanding anything to companies, &c., to enter May 29, 1961 ; the contrary in any written law or into contracts instrument relating to its functions, enter with the (b) not apply to any sum of money which into and perform or carry out all such Corporation. shall be or become due to the contracts and agreements with the Corporation on or after the date of Corporation as may be necessary for the commencement of this Act, and exercise of the powers of the Corporation. (c) have effect notwithstanding anything 74. (1) No suit or prosecution shall lie— Protection for to the contrary in any other written action taken law. (a) against any Minister for any act under this Act or on the which in good faith is done or direction of the Liability of 71. When an offence under this Act is purports to be done by him under Board of directors and committed by a body corporate, every Directors. certain officers this Act; or of a body person who at the time of the commission of corporate for the offence was a director, general manager, (h) against the Corporation for any act offence secretary or other similar officer of the body which in good faith is done or committed by that body. corporate shall be deemed to be guilty of purports to be done by the that offence unless he proves that that Corporation under this Act; or IX/215 Cap.220] CEYLON PETROLEUM CORPORATION (c) against any member, officer, servant deemed for all purposes to have complied or agent of the Corporation for any with the provisions of this Act or the act which in good faith is done or regulations made thereunder. purports to be done by him under this Act or on the direction of the 78. In this Act, unless the context Interpretation. Board of Directors. otherwise requires— (2) Any expense incurred by the " Board of Directors " means the Board of Corporation in any suit or prosecution Directors constituted under this brought by or against the Corporation Act; before any court shall be paid out of the funds of the Corporation, and any costs paid to, or recovered by, the Corporation in "Compensation Tribunal" means the any such suit or prosecution shall be Compensation Tribunal established credited to the funds of the Corporation. under this Act; (3) Any expense incurred by any such " Director" means a member of the person as is referred to in paragraph (c) of Board of Directors; subsection (1) in any suil or prosecution brought against him before any court in "foreign-owned petroleum company" [§li,Law50 respect of any act which is done or purports means any foreign-owned of l973-] to be done by him under this Act or on the petroleum company within the direction of the Board of Directors shall, if m e a n i n g of t h e d e f i n i t i o n the court holds that such act was done in of " foreign-owned p e t r o l e u m good faith, be paid out of the funds of the companies" in the Ceylon Corporation, unless such expense is Petroleum (Foreign Claims) recovered by him in such suit or Compensation Act, No. 19 of prosecution. 1965.* No writ to 75. No writ against person or property "formula " means the principles or the issue against shall be issued against a member of the basis on which prices shall be person or properly of a Corporation in any action brought against calculated and includes any member of the the Corporation. specified method of calculation of Corporation. such prices ; This Act to 76. The provisions of this Act shall have prevail over effect notwithstanding anything contained "immovable property " means land and other written includes any interest in, or any laws. in any other written law, and accordingly in the evernt of any conflict or inconsistency benefit to arise out of any land, and between the provisions of this Act and such any leasehold or other interest held other law, the provisions of this Act shall by any person in any State land, prevail. and also things attached to the earth or permanently fastened to Rectification of 77. Where, in the exercise of their anything attached to the earth ; failures and powers, performance of their functions or omissions. "motor vehicle " has the same meaning as the discharge ot their duties, under this Act, it is found that there has been, at any stage, in the Motor Traffic Act; a failure or omission on the part of the Minister, the Chairman of the Board of " person who was interested " Directors, the Corporation or any officer authorized by anyone of the aforementioned (a) in relation to any immovable to comply with any provisions of this Act or property vested in or regulations made thereunder, such person requisitioned for the may rectify such failure or omission at any Corporation, means a person time and thereupon any such person shall be who, immediately before the ' See Lisi of Enactments omitted from the Revised Edition. IX/216 CEYLON PETROLEUM CORPORATION [Cap.220 date on which such property manufactured, from hydro-carbons was so vested or requisitioned, or hydro-carbon compounds, and had an interest in such any inorganic and natural or property as owner, co-owner, synthetic organic compound or mortgagee, lessee or mixture which has been used or is otherwise, whether absolutely being used or is intended to be used for himself or in trust for any as agricultural chemicals of other person; and whatever description for the purpose of destroying or inhibiting (b) in relation to any movable or controlling the action of plant or property vested in the animal pest and fungus growth and Corporation, means any to increase the productivity and person who, immediately quality of plant life. before the date on which such property was so vested, had " property requisitioned for the an interest in such property as Corporation" means property owner, co-owner, mortgagee, requisitioned for the Corporation pledgee, hirer or otherwise, by virtue of a requisitioning Order, w h e t h e r a b s o l u t e l y for and any cognate expression shall be himself or in trust for any construed accordingly; and other person; [§16, Law 2 of "petroleum" means petroleum and " property vested in the Corporation" 1976.] includes any product, or by- means property vested in the product, which may be derived, Corporation by virtue of a vesting purchased, prepared, developed, Order, and any cognate expression c o m p o u n d e d , m a d e , or shall be construed accordingly. IX/217