CEYLON PETROLEUM CORPORATION [Cap. 220 · ceylon petroleum corporation [cap. 220 chapter 220 ceylon...

CEYLON PETROLEUM CORPORATION [Cap. 220

CHAPTER 220

CEYLON PETROLEUM CORPORATION

AcisNos-28 of 1961,

5 of 1963.18 of 1965,

LawsNos.50ofl973,

2 of 1976.

AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF A CORPORATION'TO CARRY ONBUSINESS AS AN IMPORTER, EXPORTER, SELLER. SUPPLIER OR DISTRIBUTOR OFPETROLEUM. AS WELL AS THE BUSINESS OF EXPLORING FOR, OR EXPLOITING

OR PRODUCING OR REFINING PETROLEUM, TO ENABLE THE COMPULSORYACQUISITION OR REQUISITION FOR SUCH CORPORATION OF ANY IMMOVABLEOR MOVABLE PROPERTY R E Q U I R E D " FOR THE PURPOSES OF SUCHCORPORATION AND TO PROVIDE FOR THE ESTABLISHMENT OF ACOMPENSATION T R I B U N A L ; TO PROVIDE FOR THE REGULATION AND CONTROLOF THE PRICE OF PETROLEUM; AND TO MAKE PROVISION FOR PURPOSES'CONNECTED WITH THE MATTERS AFORESAID-

Shori title- I. This Act may be cited as the CeylonPetroleum Corporation Act.

PART I

CONSTITUTION AND POWERS AND DUTIESOF THE CEYLON PETROLEUMCORPORATION AND ITS BOARD

OF DIRECTORS

[29th May. 1961.]

(b) to .carry on the business of exploring [§3,5 of 1963.)for, and exploiting, producing, andrefining of, petroleum; and

(c) to carry on any such other business as [§3,5 of 1963.]may be incidental or conducive tothe attainment of the objectsreferred to in paragraphs (a) and(fr). [§3. 5 of 1963.1

Establishmentof CeylonPetroleumCorporation.

Seal of theCorporation.

Members ol"theCorporation.

2. There shall be established aCorporation which shall be called the" Ceylon Petroleum Corporation"(hereinafter referred to as " theCorporation") and which shall consist ofthe persons who are for the time beingmembers of the Corpora t ion undersection 4.

3. The Corporation shall, by the nameassigned to it by section 2, be a bodycorporate and shall have perpetualsuccession and a common seal and may sueand be sued in such name.

4. The members of the Board ofDirectors shall be the members of theCorporation.

objects of the

(a) to carry on business as an importer,exporter, seller, supplier ordistributor of petroleum;

General objects 5. The generalof lhc Corporation shall be—Corporation.

5A. (1) For Ihe purposes of sections 5B,5D and 5F, the expression " appointed dale "means such date as may be appointed by theMinister, with the approval of theGovernment, by Order published in theGazette (being a date prior to January 1,1964) or the following date, namely,January 1, 1964, whichever of such dates isthe earlier date.

(2) An Order made under subsection (1)shall, upon its publication in the Gazette, bedeemed to be as valid and effectual as if itwere herein enacted.

5B. ( I ) On and after the appointed date,the right to import, export, sell, supply ordistribute—<>.

(a) petrol;

(b) kerosene;

(c) diesel oil, and

(d) furnace oil,

Meaning of (heexpression" appointeddale ".[§4, 5 of 1963.1

Exclusive rightto import,export, sell,supply ordistributepetroleum ofcertain classesor descriptionsvested in theCorporaflon.(§4, 5 of 1963.]

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Cap.220] CEYLON PETROLEUM CORPORATION

Power ofMinister byOrder lo vest(he exclusiverighl in theCorporation toimport, export,sell. supply ordistr ibutepetroleum ofcertain classesor descriptions.[§4,5 of 1963.1

shall, save as otherwise expressly providedby or under this Act, vest exclusively in theCorporation.

(2) On and after the appointed date, noperson, other than the Corporation, shall,save as otherwise expressly provided by orunder this Act, import, export, sell, supplyor distribute—

(a) petrol; or

(b) kerosene; or

(c) diesel oil; or

(d) furnace oil.

(3) The sale, supply or distribution byany person of any petrol, kerosene, diesel oilor furnace oil shall be deemed not to be—

(a) an interference with, or a violation of,the exclusive right vested in theCorporation by subsection (1); or

(b) a contravention of the provisions ofsubsection (2),

if, but only if, it is done under the writtenauthority of the Minister or any authorizedofficer under subsection (4), or of the Boardof Directors under section 5E, and inaccordance with the terms and conditionssubject to which such authority is granted.

(4) The Minister or any authorizedofficer may grant a written authority to anyperson to import, export, sell, supply ordistribute petroleum of any class ordescription specified in subsection ( I ) forthe sole purpose only of enabling suchperson to provide petroleum of that class ordescription as fuel for marine ships oraircraft.

5C. ( I ) The Minister may, from time totime, by Order declare that the right toimport, export, sell, supply or distributepetroleum of any such class or descriptionas shall be specified in the Order, not beingpetroleum of any class or descriptionspecified in subsection (!) of section 5B.shall, save as otherwise expressly providedby or under this Act, vest exclusively in theCorporation. Any such Order may be

amended, varied or revoked by the Ministerby a like Order.

(2) The provisions of subsections (3) to (5),both inclusive, of section 66 shall mutatismutandis apply to every Order made undersubsection (1) of this section in like mannerand to the same extent as such provisionsapply to an Order made under the saidsection 66.

(3) So long as an Order made by theMinister under subsection (1) is in force inrespect of petroleum of any class ordescription, no person other than theCorporation shall, save as otherwiseexpressly provided by or under this Act,import, export, sell, supply or distributepetroleum of that class or description.

(4) The sale, supply or distribution byany person of petroleum of any class ordescription in respect of which there is forthe time being in force an Order made bythe Minister under subsection (1) shall bedeemed not to be—

(a) an interference with, or a violation of,the exclusive right vested in theCorporation by that Order; or

(b) a contravention of the provisions ofsubsection (3),

if, but only if, it is done with the writtenauthority of the Board of Directors undersection 5E, and in accordance with the termsand conditions subject to which suchauthority is granted-

5D. On and after the appointed date,the righl to explore for, and exploit,produce and refine, petroleum shall vestexclusively in the Corporation; andaccordingly, on and after that date, noperson, other than the Corporation, shallexplore for, or exploit or produce or refine,petroleum.

5E. Notwithstanding that the exclusiverighl to sell, supply or distribute petroleumof any class or description is vested in theCorporation by any provision of this Act orany Order made thereunder, the Board ofDirectors may, from time to time, asrespects petroleum of that class ordescription only grant written authority to

Exclusive rightto explore for,&c,, petroleumvested in theCorporation.[§4, 5 of 1963.1

Power of, Board ofDirectors toauthorizepersons to sell,&c-, petroleumof certainclasses ordescriptions.[§4,5 of 1963.]

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CEYLON PETROLEUM CORPORATION [Cap.220

Control of theestablishmentandmaintenance ofequipment andfacilities for theexploration,&c., ofpetroleum,[§4,5 of 1963.]

Control of thedisposal ofequipment andfacilitiesintended fortheexploration,&c., ofpetroleum.[§4.5of 1963.)

Specialprovisionsapplicable tothe power ofgrantingwrittenauthoritiesconferred onthe Minister,authorizedofficers and theBoard ofDirectors.[§4, 5 of 1963-]

any person to sell, supply or distributepetroleum of that class or descriptionsubject to such terms and conditions as maybe determined by such Board.

5F. On and after the appointed date, noperson, other than the Corporation or anyperson authorized by the Board of Directorsunder section 5E, shall establish or maintainany equipment or facilities for theexploration, exploitation, production,refinement, storage, sale, supply ordistribution of petroleum except with thewritten authority of the Minister or anyauthorized officer, or otherwise than inaccordance with the terms or conditionssubject to which such authority is granted.

5G. No person, other than theCorporation, shall export, sell, lease,transfer, hypothecate, alienate or dispose ofin any manner whatsoever any equipment orfacilities which had been, or is or are being,or is or are, or was or were, intended to beused for the exploration, exploitation,production, refinement, storage, sale, supplyor distribution of petroleum except with thewritten authority of the Minister or anyauthorized officer, or otherwise than inaccordance with the terms and conditionssubject to which such authority is granted.

5H. The following provisions shall beapplicable in the case of the exercise of thepower to grant a written authority conferredon the Minister, any authorized officer orthe Board of Directors by any of thesections 5B, 5E, 5F and 5G :—

(1) Such authority may be granted eitherof his or its own motion or onapplication in that behalf made byany person.

(2) The Minister, such officer or suchBoard may, in his or its absolutediscretion, decide whether to grantor refuse to grant such authority.

(3) The Minister, such officer or suchBoard may, in his or its absolutediscretion, decide the terms andconditions subject to which suchauthority should be granted.

(4) The Minister, such officer or suchBoard may, in his or its absolutediscretion, decide at any time tocancel such authority.

(5) The terms or conditions of suchauthority may be amended, variedor cancelled either of his or its ownmotion or on application in thatbehalf made by the person to whomsuch authority is granted.

(6) The Minister, such officer or suchBoard may, in his or its absolutediscretion, decide whether or not toamend, vary or cancel any term orcondition of such authority.

(7) Any decision made by the Minister,such officer or such Board underthe preceding provisions of thissection shall be final andconclusive, and shall not be calledin question in any court whether byway of writ or otherwise.

5 I. The expression " authorized officer "wherever it occurs in any of the sections 5Bto 5H (both inclusive) means any publicofficer or an officer of the Corporationauthorized in that behalf by the Minister.

S J. (I) No person other than theCorporation who on the 5th day of June,1963, was carrying on business as animporter and seller, supplier or distributorof petroleum of any class or descriptionspecified in subsection (1) of section 5B shallterminate the employment of any person(hereafter in this section referred to as an" employee ") employed by him except withthe written approval of the Commissioner,or otherwise than in accordance with theterms or conditions subject to which suchapproval is granted.

A person who was carrying on thebusiness referred to in the precedingprovisions of this subsection is hereafter inthis section referred to as an " employer ".

(2) The following provisions shall applyin the case of the exercise of the powersconferred on the Commissioner to grant hisapproval to an employer terminating the

Meaning of theexpression" authorizedofficer ".[§4, 5 of 1963.1

Specialprovisionsrelating luemployees ofpersons whowere carryingon business asimporter andseller, &c., ofpetroleum.[§4.5 of 1963.]

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employment of any employees :—

(a) Such approval may be granted orrefused on application in thatbehalf made by such employer.

(b) The Commissioner may, in hisabsolute discretion, decide to grantor refuse such approval.

(c) The Commissioner may, in hisabsolute discretion, decide theterms and conditions subject towhich his approval should begranted, including in particularterms and conditions relating to thepayment by such employer to suchemployee of a gratuity orcompensation for the terminationof employ ment-

(d) Any decision made by theCommissioner under the precedingprovisions of this subsection shallbe final and conclusive, and shallnot be called in question in anycourt, whether by way of writ orotherwise.

(3) Where, on or after June 5, 1963, anyemployer has granted or grants to anyemployee, in addition to any benefit suchemployee was or would be entitled toreceive in the ordinary course of hisemployment, any ex gratia gratuity orcompensation or other benefit (hereafter inthis subsection referred to as " ex gratiabenefits "), then, every person who was anemployee of that employer on June 5, 1963,shall be entitled, with the approval of theCommissioner given upon application inthat behalf made by such person, to receivethe same ex gratia benefits so however thatthe amount thereof shall be as determinedby the Commissioner. The precedingprovisions of this subsection shall apply toany person notwithstanding that he ceasedor ceases to be an employee of thatemployer after June 5, 1963, for any reasonwhatsoever other than misconduct. Anyapproval or determination of theCommissioner under the precedingprovisions of this subsection shall be finaland conclusive, and shall not be called inquestion in any court, whether by way ofwrit or otherwise.

(4) Where an ex gratia gratuity orcompensation or other benefit is granted by

any employer to an employee, suchemployer shall furnish to the Commissioner,within thirty days of the grant thereof, fulldetails of the gratuity, compensation orother benefit so granted. Such details shallbe furnished in such form and manner asmay be determined by the Commissioner.

(5) In this section, "Commissioner"means the Commissioner of Labour, andincludes a Deputy Commissioner of Labour.

5K. The provisions of section 5A to 5J(both inclusive) shall have effectnotwithstanding anything to the contrary inany other provisions of this Act, or in anyundertaking, express or implied, given by oron behalf of the Government or theCorporation relating to the business ofimporting, exporting, selling, supplying ordistributing petroleum.

[§10.5 of1963.]

6. The Corporation may exercise all or Powers of theany of the following powers :- Corporation.

(a) to acquire, hold, lake or give on leaseor hire, mortgage, pledge and sell oro t h e r w i s e d i s p o s e o f , a n yimmovable or movable property ;

(b) to employ such officers and servantsas may be necessary for carryingout the work of the Corporation ;

(c) to do anything for the purpose ofadvancing the skill of personsemployed by the Corporat-on or theefficiency of the equipment of theCorporation or the manner inwhich that equipment is operated,including the provision by theCorporation, and the assistance ofthe provision by others, of facilitiesfor training persons required toc a r r y o u t the w o r k of theCorporation;

(d) to establish a provident fund, andprovide welfare and recreationalfacilities, houses, hostels and otherlike accommodation for persons employed by the Corporation;

(e) to construct, manufacture, purchase,maintain and repair anythingrequired for the purpose of thebusiness of the Corporation;

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CEYLON PETROLEUM CORPORATION (Cap. 220

(f) to make charges for any servicesrendered by the Corporation incarrying on such businesss;

(g) to purchase such quantities ofpetroleum as may be necessary forthe purpose of the business of theCorporation;

(h) to re-export petroleum;

[§2, Law 2 of (i) with the approval of the Government,1976-] to promote any subsidiary

organization in Sri Lanka orabroad which may in the opinion ofthe Board directly or indirectlypromote the interests, or beconducive to the attainment of theobjects, of the Corporation;

[§2, Law 2 of1976.]

(§2, Law 2 of1976.]

(j) to purchase, charter, build orotherwise acquire, mortgage, sell,exchange and let out on hire orcharter or otherwise deal with ordispose of, any tanker, bunker orvessel;

(k) to contribute such sums of money asmay be determined by the. Boardwith the approval of the Ministergiven with the concurrence of theMinister in charge of the subject ofFinance and the Minister in chargeof the subject of Planning, torecognized institutions for thep u r p o s e o f p r o m o t i n gt e c h n o l o g i c a l , s c i en t i f i c andindustrial research;

[§2, Law 2 of (l) to give any guarantee, security or1976.] indemnity to, and to enter into any

agreements with, any bank,Governmenf department, localauthority, or any other person inorder to obtain any rights,concessions, or privileges that mayseem to the Board to be conducivef o r t h e p u r p o s e s of t h eCorporation;

(m) to delegate to any officer of theCorporation any such function ofthe Corporation as the Corporationmay consider necessary so todelegate for the efficient transactionof business;

(n) to enter into and perform or carryout, whether directly or throughany officer or agent authorized inthat behalf by the Corporation, allsuch contracts or agreements asmay be necessary for the exercise ofthe powers of the Corporation;

(o) to make rules in relation to its officersand servants, including theira p p o i n t m e n t , p r o m o t i o n ,remuneration, disciplinary control,conduct and the grant of leave tothem;

(p) to make rules in respect of theadministration of the affairs of theCorporation; and

(q) to do all other things which, in theopinion of the Corporation, arenecessary to facilitate the propercarrying on of its business.

7. (1) The Minister may, afterconsultation with the Board of Directors,give such Board general or special directionsin writing as to the exercise of the powers ofthe Corporation, and such Board shall giveeffect to such directions.

(2) The Minister may, from time to time,direct in writing the Board of Directors tofurnish to him, in such form as he mayrequire, returns, accounts and otherinformation with respect to the propertyand business of the Corporation, and suchBoard shall carry out every such direction.

(3) The Minister may, from time to time,order all or any of the activities of theCorporation to be investigated and reportedupon by such person or persons as he mayspecify, and upon such order being made,the Board of Directors shall afford all suchfacilities, and furnish all such information,as may be necessary to carry out the order.

8. (1) The Corporation shall have aBoard of Directors consisting of sevenmembers appointed by the Minister, one ofwhom shall be so appointed in consultationwith the Minister in charge of the subject ofFinance.

(2) A person shall be disqualified frombeing appointed or continuing as a Directorand in t h a t e v e n t sha l l ipso factocease to hold office,

(a) if he is a Member of Parliament, or

Powers of theMinister inrelation to theCorporation.

Board ofDirectors.[§3, Law 2 of1976.]

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R e m u n e r a t i o nof Diretors.

Director todiscloseinterest incontractproposed to bemade by theCorporation.

(b) if he, directly or indirectly, by himselfor by any person on his behalf orfor his use or benefit, holds orenjoys any right or benefit underany contract other than a contractof employment made by, with or onbehalf of the Corporation, or

(c) if he has any such financial or otherinterest except as an employee ofthe Corporation as is likely to affectprejudicially the discharge by himof his functions as a Director.

(3) Where a Director is, by reason ofillness, infirmity or absence from Sri Lanka,temporarily unable to perform the duties ofhis office, the Minister may appoint anyperson to act in his place-

(4) The Minister may. without assigninga reason, remove any Director from office.The removal of any Director Irom office bythe Minister shall not be called in questionin any court.

(5) A Director who is not a public officermay resign the office of Director by letteraddressed to the Minister.

(6) Subject to the provisions ofsubsection (4) and subsection (5), the termof office of the Board of Directors shall bethree years:

Provided that a Director appointed inplace of a Director who diesi or resigns orotherwise vacates office shall, unless heearlier resigns or otherwise vacates office,hold office for the uncxpired part of theterm of office of the Director whom hesucceeds.

9. All or any of the Directors may bepaid such remuneration, out of the funds ofthe Corporation, as may be determined bythe Minister, with the concurrence of theMinister in charge of the subject of Finance.

10. A Director who is directly orindirectly interested in a contract proposedto' be made by the Corporation shalldisclose the nature of his interest at ameeting of the Board of Directors. Thed i s c l o s u r e s h a l l be r e c o r d e d

in the minutes of such Board, and suchDirector shall not take part in anydeliberation or decision of such Board withrespect to such contract.

11. The quorum for any meeting of the Quorum forBoard of Directors shall be three. any meeting of

Board ofDirectors.

Chairman ofany meeting ofthe Board ofDirectors tohave a castingvole.

12. The Chairman of any meeting of theBoard of Directors shall, in addition to hisown vote, have a casting vote.

13. Subject to the other provisions of Regulation ofthis Act, the Board of Directors may Procdure.regulate the procedure in regard to themeetings of such Board and the transactionof business at such meetings.

14. The Board of Directors may actnotwithstanding a vacancy among themembers thereof.

15. The general supervision, control andadministration of the affairs and business ofthe Corporation shall be vested in the Boardof Directors of the Corporation.

16. (1) The Board of Directors maydelegate to any Director or employee ofsuch Board any of its powers or duties.

(2) Every delegate appointed undersubsection (!) shall exercise or perform thepower or duty delegated to him subject tothe general or special directions of theBoard of Directors.

17. (I) The Minister shall appoint aChairman of the Board of Directors fromamong the Directors and may at any timeappoint one of the Directors as theManaging Director of the Corporation. TheChairman of the Board of Directors shall beeligible for appointment as the ManagingDirector,

(2) The Managing Director of the'Corporation shall be eligible forappointment as the Chairman of the Boardof Directors.

(3) The terms and conditions of theappointment of the Managing Director of

The Board ofDirectors mayact despitevacancy.

Generalcontrol of theCorporation.

Delegation ofpowers andduties of Boardof Directors.

Chairman ofthe Board ofDirectors andManagingDirector.[§4, Law 2 of1976.]

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Appointmentof publicofficers andofficers andservants of theLocalGovernmentService and ofany localauthority tothe staff of theCorporation.

the Corporation shall be determined by theMinister with the concurrence of theMinister in charge of the subject of Finance.

(4) The Managing Director's term ofoffice, his remuneration, his resignation orremoval from or vacation of office, and hiseligibility for reappointment on vacation ofoffice shall notwithstanding anything insubsection (6) of section 8 be in accordancewith the terms and conditions of hisappointment.

*19. (1) At the request of the Boardof Directors, any officer in the public servicemay, with the consent of that officer and ofthe Secretary to the Ministry charged withthe subject of Public Administration, betemporarily appointed to the staff of theCorporation for such period as may bedetermined by the Board with like consentor be permanently appointed to such staff.

(2) Where any officer in the public serviceis temporarily appointed to the staff of theCorporation, the provisions of subsection(2) of section 9 of the Motor Transport Act,No. 48 of 1957, \ shall, mutatis mutandis,apply to and in relation to him.

(3) Where any officer in the public serviceis permanently appointed to the staff of theCorporation, the provisions of subsection (3)of section 9 of the Motor Transport Act,No. 48 of 1957,1 shall, mutatis mutandis^apply to and in relation to him.

(4) Where the Corporation employs anyperson who has entered into a contract withthe Government by which he has agreed toserve the Government for a specified period,any period of service to the Corporation bythat person shall be regarded as service tothe Government for the purpose ofdischarging the obligations of such contract.

(5) At the request of the Board ofDirectors, any officer or servant of theLocal Government Service or any localauthority may, with the consent of thatofficer or servant and of the LocalGovernment Service Advisory Board or thatauthority, as the case may be, betemporarily appointed to the staff of theCorporation for such period as may be

determined by that Board with like consent,or be permanently appointed to the staff, onsuch terms and conditions, including thoserelating to pension or provident fund rights,as may be agreed upon by that Board andthat Advisory Board or that authority.

(6) Where any officer or servant of theLocal Government Service or of any localauthority is temporarily appointed to thestaff of the Corporation, he shall be subjectto the same disciplinary control as any othermember of such staff.

20. All officers and servants of theCorporation shall be deemd to be publicservants within the meaning and for thepurpose of the Penal Code.

21. The Corporation shall be deemed tobe a scheduled institution within themeaning of the Bribery Act, and theprovisions of that Act shall be construedaccordingly.

22. (1) The seal of the Corporation shallbe in the custody of the Board of Directors.

(2) The seal of the Corporation may bealtered in such manner as may bedetermined by the Board of Directors.

(3) The seal of the Corporation shall not [§6, Law 2 ofbe affixed to any instrument or document 1976]except in the presence of two Direciors bothof whom shall sign the instrument ordocument in token of their presence.

PART II

FINANCE

23. (1) The initial capital of the Capital of theCorporation shall be ten million rupees. Corporation.

(2) The amount of the initial capital ofthe Corporation shall be paid to theCorporation out of the Consolidated Fund in such instalments as the Minister in chargeof the subject of Finance may, afterconsultation with the Minister, determine.

Officers andservants of theCorporationdeemed to bepublic servants.

TheCorporationdeemed to be ascheduledinstitutionwithin themeaning of theBribery Act-

Applicationand custody ofthe seal of theCorporation.

* Section 18 is repealed by Law No. 2 of 1976.f Repealed by Law No. 19 of 1978.

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Borrowingpowers of theBoard ofDirectors.

(3) The capital of the Corporation maybe increased, from time to time, by suchamount as may be determined by theCorporation with the approval of theMinister given with the concurrence of theMinister in charge of the subject of Finance.

24. (1) The Board of Directors may,with the consent of the Minister, or inaccordance with the terms of any generalauthority given by him, borrow temporarily,by way of overdraft or otherwise, such sumsas the Board may require for meeting theobligations of the Corporation:

Provided that the aggregate of theamounts outstanding in respect of anytemporary loans raised by the Board ofDirectors under this subsection shall not atany time exceed such sum as may bedetermined by the Minister in consultationwith the Minister in charge of the subject ofFinance.

(2) The Board of Directors may, with theconsent of the Minister given with theconcurrence of the Minister in charge of thesubject of Finance, borrow money,otherwise than by way of a temporary loanunder subsection (1), for all or any of thefollowing purposes:—

(a) the provision of working capital;

(b) the provision of money for meetingany expenses incurred in connexionwith any permanent work or otherthing the cost of which is properlychargeable to capital;

(c) the provision of money required forthe payment of any compensationunder this Act which is payable incash by the Corporation ;

(d) the redemption of any stock issued orany loan raised by the Board ofDirectors ; and

(e) any other purpose for which capitalmoneys are properly applicable,including the repayment of anymoney temporarily borrowed undersubsection (1).

(3) The Board of Directors may, with theconsent of the Minister given with theconcurrence of the Minister in charge of thesubject of Finance, borrow money for anyof the purposes mentioned in subsection (2)by the issue of stock under section 26 or inany other manner whatsoever.

25. Any funds of the Corporation which Investments ofare not immediately required for thepurposes of the business of the Corporationmay be invested by the Board of Directorsin such manner as such Board maydetermine with the approval of the Minister.

funds of theCorporation.

26. (1) The Board of Directors—

(a) may create and issue any stockrequired for the purpose ofexercising the powers of the Boardunder subsection (3) of section 24,and

(b) shall create and issue such stock as isrequired for the purpose ofsatisfying any right as 'tocompensation under this Act whichis to be satisfied by the issue ofstock,

and the stock so created and issued is in thisAct referred to as "Petroleum CorporationStock ".

(2) Petroleum Corporation Stock shall beissued, transferred, dealt with, redeemedand cancelled in accordance with such termsas may be determined by the Board ofDirectors with the approval of the Ministergiven with the concurrence of the Ministerin charge of the subject of Finance.

27. (1) The Minister in charge of thesubject of Finance shall guarantee therepayment of the principal of, and thepayment of the interest on, any PetroleumCorporation Stock created and issued undersection 26 (1) (b), and may, with theconcurrence of the Minister, guarantee therepayment of the principal of, and thepayment of the interest on, any PetroleumCorporation Stock created and issued undersection 26 (1) (a).

(2) Any sum required for the fulfilmentof a guarantee provided under subsection (I)

PetroleumCorporationstock.

Governmentguarantee.

1X/200


may, with the prior approval of Parliament,be paid out of the Consolidated Fund.

(3) Any sum paid out of the ConsolidatedFund in fulfilment of a guarantee providedunder subsection (1) shall be repaid,together with interest thereon, at such rateas the Minister in charge of the subject ofFinance may determine with theconcurrence of the Minister, by theCorporation in such manner and over suchperiod as the Minister in charge of thesubject of Finance may with suchconcurrence determine.

(4) Immediately after a guarantee is givenunder subsection (1), the Minister in chargeof the subject of Finance shall lay astatement of the guarantee beforeParliament.

(5) Where any sum is paid out of theConsolidated Fund in fulfilment of aguarantee provided under subsection (1), theMinister in charge of the subject of Financeshall forthwith lay before Parliament astatement that such sum has been so paid.

Application ofthe revenue of

28. The revenue of the Corporation inany year shall be applied in defraying the

Corporation following charges in the order of priority setout hereunder:—

(a) the working and establishmentexpenses (including allocations tothe insurance reserve anddepreciation reserve), in connexionwith the exercise and performanceof the powers of the Corporation,properly chargeable to revenueaccount;

(h) the interest on any temporary loanraised by the Corporation ;

(c) any sums required to be transferred toany sinking fund or redemptionfund; and

(d) the interest on and the repayment ofthe prinicipai of any Governmentloan to the Corporation.

Reserves. 29. (1) The Board of Directors—

(a) may establish and maintain aninsurance reserve to cover theinsurance of the movable and

i m m o v a b l e p r o p e r t y of theCorporation and liabilities arisingu n d e r t h e W o r k m e n ' sCompensation Ordinance; and

(b) shall establish and maintain—

(i) a depreciation reserve to coverthe depreciation of themovable and immovableproperty of the Corporation,and

(ii) a general reserve not exceedingsuch amount as may fromtime to time be determined bythe Minister.

(2) Such amount out of the surplus of therevenue of the Corporation in any yearremaining after the charges mentioned insection 28 have been satisfied as can be paidto the general reserve without causing it toexceed the amount determined by theMinister under paragraph (b) (ii) ofsubsection (1) shall be paid to that reserveand the balance, if any, of such surplus shallbe paid to the Deputy Secretary to theTreasury to be credited to the ConsolidatedFund.

30. (1) The Corporation shall cause its Accounts.accounts to be kept in such form and insuch manner as may be prescribed.

(2) The books and the accounts of theCorporation shall be kept at the head office,of the Corporation.

(3) The Corporation shall cause its booksto be balanced as on the thiry-Hrst day ofDecember in each year and shall, as soon asmay be thereafter, cause to be prepared aprofit and loss account and a balance sheetcontaining a summary of the assets andliabilities of the Corporation made up todate aforesaid. The aforesaidaccounts and the balance sheet shall be signed by theofficer responsible for the preparation ofsuch accounts and balance sheet.

31. The Corporation shall have its Audit ofaccounts for each year audited before the accounts.thirtieth day of June of the succeeding yearby an auditor appointed by the Minister inconsultation with the Auditor-General. Thea u d i t o r s h a l l r e c e i v e s u c h

1X/201

Pramod N Hettihewa

Pramod N Hettihewa

Pramod N Hettihewa

the


Auditor'sreport andtransmission ufreport andbalance sheet,&c., to theMinister

[§23,38 of1971.1

Exemptionfrom taxes.[§57, 18 of1965.]

Notice of claimor disclaimer inrespect ofpropertyrequired forthe purposes oftheCorporation.[§7,l.aw21976.]

remuneration from the funds of theCorporation as the Minister may inconsultation with the Corporationdetermine.

32. (1) The auditor appointed undersection 31 shall examine the accounts of theCorporation and ascertain the correctness ofthe balance sheet and furnish a reportstating—

(a) whether he has or has not obtained allthe information and explanationsrequired by him, and

(b) whether the balance sheet andaccounts referred to in the reportare properly drawn up so as toexhibit a true and fair view of theCorporation's affairs.

(2) The report of the auditor shall betransmitted to the Auditor-General and tothe Corporation.

(3) The Corporation shall, on receipt ofthe auditor's report and the Auditor-GeneraFs comments, if any, thereon in eachyear, transmit such report together with theprofit and lo&s account and the balancesheet to which the report relates, and astatement by the Corporation of itsactivities during the financial year to whichsuch report relates, and of the activities (ifany) which are likely to be undertaken bythe Corporation in the next financial year,to the Minister who shall before the thirtyfirst day of December of the same yearcause copies thereof to be laid beforeParliament for approval.

33. The Personal Tax Act, No. 14 of1959,* shall not apply to the Corporation.

PART III

ACQUISITION, REQUISITION, AND USE OFPROPERTY FOR OR BY THE CORPORATION

34. (1) Any officer of the Corporationauthorized by the Minister may, by notice(hereafter in this Act referred to as a" notice of claim ") published in the Gazette,declare that any movable or immovableproperty, o ther than money, which

had been or is being or is or was intendedto be used for—

(a) the importation, exportation, storage,sale, supply or distribution ofpetroleum; or

(b) o i l e x p l o r a t i o n or s i t i n g ofnew d i s t r i b u t i o n o u t l e t s ofpetroleum; or

(c) the carrying on of such other businessas may be incidental or conduciveto the purposes referred to inparagraph (a) or paragraph (A),

is required for the purposes of theCorporation. Such property is hereafter inthis Act referred to as " notified property ".

(2) When a notice of claim is publishedunder subsection (1) any property containedin or found on such notified property shallbe deemed to have been included in thenotice of claim.

(3) The publication of a notice of claimmade under subsection (1) in respect of anyproperty shall be conclusive proof that suchproperty is required for the purposes of theCorporation.

(4) Where a notice of claim is nublishedunder subsection ( I ) , any officer of theCorporation authorized by the Ministermay from time to time, by notice (hereafterin this Act referred to as a " notice ofdisclaimer") published in the Gazette,disclaim the need, for the purposes of theCorporation, of the whole or any part of theproperty included in the notice of claim andspecified in the notice of disclaimer.

(5) No person shall lease, hypothecate,alienate, transfer or dispose of in any mannerwhatsoever to any person other than theCorporation the whole or any part of—

(a) any property which is included in anotice of claim and is not disclaimedby a notice of disclaimer, or

* See 1-ist of Enactments omitted from the Revised Edition.

IX/202


(b) any right or interest in respect of orincidental to the property specifiedin paragraph (a).

(6) Any lease, hypothecation, alienation,transfer or disposal made or effected incontravention of the provisions ofsubsection (5) shall be null and void.

(7) Any person shall, if requested by anyofficer authorized by the Minister, furnishto such person as shall be specified in therequest information with regard to anymovable or immovable property included ina notice of claim as shall be so specified.

(8) Any person who—

(a) leases, hypothecates, transfers ordisposes of any notified property incontravention of subsection (5); or •

(b) fails to furnish wilfully theinformation referred tff^ insubsection (7), or who wilfullywithholds all or any part of suchinformation, or who furnishesinformation knowing suchinformation to be false; or

(c) wilfully or negligently destroys ordamages or causes to be destroyedor damaged any notified property;or

(d) removes, changes the situation, oralters the character or causes suchremoval, change or alteration ofany notified property,

shall be guilty of an offence under this Act.

(9) Regulations may be made under thisAct—

(c) empowering any person authorized inthat behalf by the Corporation toinspect any notified property, andrequiring the persons in whosepossession or custody such propertyis to allow and assist the inspectionthereof,

(b) providing that a report as to thecondition of any notified propertymay be made, and may besubsequently amended, by or underthe authority of the Corporation ;

(c) providing for the service of copies ofsuch report or any amendmentthereof on persons having aninterest in the property to which thereport relates;

(d) requiring persons on whom copies ofthe report or any amendmentthereof have been served to notifythe Corporation whether or notthey are in agreement with suchreport or amendment, and, if theyare not in agreement, to specify anyobjections they may have and thegrounds of such objections and toproduce all documents relied on bythem in support of such objections;

(e) prohibiting the making of anyimprovements or alterations to anynotified property without the priorapproval of the Corporation ; and

(f) providing for all matters connectedwith or incidental to the mattersaforesaid.

34A. Where any petroleum is foundunder the surface of the earth on anyproperty in Sri Lanka, such petroleum shall,notwithstanding any right of ownership orotherwise which any person may have to thesoil under which such petroleum is found orsituated, vest in the Corporation.

35. (1) The Minister may, by Order(hereafter in this Act referred to as a" vesting Order") published in the Gazette,vest in the Corporation, with effect fromsuch dale as shall be specified in the Order,any such notified property as has not beendisclaimed by a notice of disclaimer or anyright, interest or benefit in such notified,property derived under the terms of anyarrangement, agreement (formal orinformal), lease or notarially executedinstrument subsisting on the date ofpublication of the notice of claim.

(2) Before a vesting Order takes effect,the Minister may from time to time alter, byOrder published in the Gazette, the date onwhich such vesting Order takes effect.

(3) A vesting Order shall have the effectof giving the Corporation absolute title to

Petroleumfound underthe surface ofthe earth tovest in theCorporation.[§8, Law 2 of1976.]

Compulsorytransfer to theCorporation ofcertainproperty.

15- IX/203


Requisition ofrolifiedproperty andcompulsaryacquisation ofrequisitionedproperty.

[§9, Law 2 of1976.]

any property specified in the Order witheffect from the date specified therein'andfree from all encumbrances :

Provided however, where any right,interest or benefit in any notified property isvested in the Corporation, a vesting Ordershall have the effect of giving theCorporation such right, interest or benefitwith effect from the date specified in theOrder.

36. (1) The Minister may, by Order(hereafter in this Act referred to as a" requisitioning Order") published in theGazette, requisition, with effect from suchdale as shall be specified in the Order, anynotified property as is immovable property,in order that it may be temporarily used bythe Corporation for the purposes of itsbusiness.

(2) Before a requisitioning Order takeseffect, the Minister may from time to timealter, by Order published in the Gazette, thedate on which such requisitioning Ordertakes effect.

(3) A requisitioning Order shall have theeffect of authorizing the Corporation, witheffect from the date specified in the Order,to take possession of the property specifiedin the Order and to use such propertytemporarily for the purpose of the businessof the Corporation in any mannerwhatsoever.

(4) Where any property is requisitionedby a requisitioning Order, the Minister may,by Order (hereafter in this Act referred to as"derequisitioning Order") published in theGazette, derequisition with effect from suchdate as shall be specified in thederequisitioning Order, such property orsuch part of the property as shall bespecified therein

(5) Before a derequisitioning Order takeseffect, the Minister may from time to timealter,, by Order published in the Gazette, thedate on which such derequisitioning Ordertakes effect.

owner of such property, was entitled topossession of or any other right, title orinterest in such property under the terms ofany arrangement, agreement (formal orinformal), lease or notarially executedinstrument that arrangement, agreement(formal or informal), lease or notariallyexecuted instrument shall be deemed for allpurposes to have expired on that date.

(7) Where any property is derequisitionedby a derequisitioning Order such Order shallbe deemed to have the effect of reviving anyarrangement, agreement (formal orinformal), lease or notarially executedinstrument subsisting on the date on whichthe property was requisitioned, and anyquestion which may arise as to any right,title or interest, in or. over that propertyshall be determined accordingly.

(8) Notwithstanding anything to thecontrary in this Act or in any other law theprovisions of subsection (7) shall not applyto any arrangement, agreement (formal orinformal), lease or notarially executedinstrument affecting any movable orimmovable property of the State subsistingon the date on which the property wasrequisitioned.

(9) Where any property requisitioned forthe Corporation is permanently required forthe purpose of the business of theCorporation, such property may be vestedin the Corporation by a vesting Order.

37. (1) Notwithstanding that anymovable or immovable property has vestedin the Corporation by virtue of a vestingOrder, the Minister may at any time beforean award as to compensation is made inrespect of that property under section 65, bysubsequent Order published in the Gazette(hereafter in this section referred to as a" divesting Order") revoke that vestingOrder in respect of that property or suchpart of that property as shall be specified inthat divesting Order.

Revocation ofvesting Order.[§10, Law 2 of1976.)

(6) Where, immediatelyon which any propertyunder this Act, a person,

before the date (2) The following provisions shall apply [§10,Law2ofis requisitioned in any case where a vesting Order in respect 1976]other than the of any movable or immovable property is

IX/204

CEYLON PETROLEUM CORPORATION [Cap.220revoked by a divesting Order:—

(a) that property or the specified part ofthat property, as the case may be,shall be deemed never to havevested in the Corporation by virtueof that vesting Order, and shallcease to be notified property, andany question which may arise as toany right, title or interest, in or overthat property or the specified partof that property, as the case mayb e , s h a l l be d e t e r m i n e daccordingly;

(b) that property or the specified part ofthat property, as the case may be,shall be deemed to have been and tobe property which was requisitionedby a requisitioning Order witheffect from the date on which thatvesting Order look effect and wasd e r e q u i s i t i o n e d b y aderequisitioning Order with effectfrom the date of the revocation ofthat vesting Order;

(c) all claims made under this Act to thecompensation payable in respect ofthat property and all proceedingstaken under this Act in regard tosuch claims before that vestingOrder was revoked shall be deemedto be null and void, and freshclaims to compensation in respectof that property or the specifiedpart of that property may be madeunder this Act and freshproceedings in regard to such freshclaims may be taken under thie.Act:

Provided that nothing in thepreceding provisions of thissubsection shall be deemed to reviveany arrangement, agreement(formal or informal), lease ornotarially executed instrumententered into in respect of thatproperty by any foreign-ownedpetroleum company and subsistingon the date on which that propertywas vested.

(3) The preceding provisions of thissection shall have effect notwithstandinganything in any other provisions of this Actor in any other written law.

37A. Where a vesting Order undersection 35 or a divesting Order undersection 37 in respect of any land or partthereof is published in the Gazette, theCorporation shall cause a copy of suchGazette, to be transmitted to the Registrarof Lands of the district in which the land orpart thereof is situated, and such Registrarshall duly register such copy under theRegistration of Docitments Ordinance as aninstrument ai'lecting land.

38. (1) Any person specially orgenerally authorized in that behalf by theMinister or the Chairman of the Board ofDirectors may take possession of anyproperty vested in or requisitioned for theCorporation.

(2) Any officer of the Corporationauthorized in that behalf by the Chairmanof the Board of Directors shall, by noticegiven to the person in occupation or inpossession of any property vested in orrequisitioned for the Corporation orexhibited in some conspicuous place on orin the vicinity of such property—

(a) inform that such authorized officerintends to take possession of suchproperty for and on behalf of theCorporation on such dale and atsuch time and place as shall bespecified in the notice, and

(b) require any person interested or his authorized agent to be present onthe date and at the lime and placeso specified, and to allow and assistsuch authorized officer to takepossession of such property for andon behalf of the Corporation.

Where such property is a motor vehicle, thenotice aforesaid may be given to theregistered owner of that vehicle within themeaning of the Motor Traffic Act instead ofbeing given to the person in possession ofthat motor vehicle.

(3) Any notice required to be given toany person under the preceding provisionsof this section shall be deemed to be givento him if such notice is sent to him byregistered letter through the post.

Copies ofGazettescontainingvesting Ordersand divestingOrders to betransmitted lothe Registrarof Lands whoshall dulyregister them.[§11, Law 2 of1976.]

Takingpossession ofproperty vestedin, orrequisitioned .for.theCorporation.

IX/205

Cap. 220] CEYLON PETROLEUM CORPORATION

Provisions ofselections38 and39 to applymutatismutandis totakingposession ofpropertybelonging totheCorporatinon terminationof agreementof hire or lease(§i2,Law2of1976.]

Prevention ofor obstructionto takingpossession ofproperty for oron behalf oftheCorporation.

(4) Any person who contravenes anyrequirement of any notice given to himunder this section shall be guilty of anoffence under this Act.

38A. (1) The provisions of sections 38and 39 shall, mutatis mutandis, apply to thetaking of possession of any properlybelonging to the Corporation on thetermination of any agreement under whichsuch property was let or leased for thepurpose of being used as a distributionoutlet of petroleum.

(2) Where an agreement under which anyproperty belonging to the Corporation waslet or leased for the purpose of being used asa distribution outlet of petroleum isterminated, the person in occupation ofsuch properly shall remove or cause to beremoved from such property any fixture ormovable property belonging to him andhand over vacant possession of suchproperty to the authorized officer on orbefore the date specified in the notice givenunder section 38-

(3) Any person who fails to comply withthe requirements of subsection (2) shall beguilty of an offence and shall, on convictionafter trial before a Magistrate, be liable toimprisonment of either description for aterm not exceeding six months or to a finenot exceeding one thousand rupees, and inthe case of a continuing offence to anadditional fine not exceeding fifty rupees foreach day during which such offence iscontinued after conviction thereof.

39. (I) Every person who—

(tf) prevents, obstructs or resists, or

(b) directly or indirectly causes anyone toprevent, obstruct or resist,

any person from or in taking possession,under section 38, of any property for and onbehalf of the Corporation shall be guilty ofan offence under this Act.

(2) Where an officer authorized by theMinister or the Chairman of the Board ofDirectors under section 38 to takepossession of any property for and onbehalf of the Corporation is unable or

apprehends that he will be unable to takepossession of such property because of anyobstruction or resistance that has been or islikely to be offered, on his making anapplication in that behalf to the Magistrate'sCourt having jurisdiction over the placewhere that property is kept or situated, theMagistrate shall issue an order of the Courtdirecting the Fiscal to deliver possession ofthat property to him for and on behalf ofthe Corporation,

(3) Where an order under subsection (2)is issued to the Fiscal by a Magistrate'sCourt, he shall forthwith execute that orderand shall in writing report to the Court themanner in which that order was executed.

(4) Where an order under subsection (2)is issued to the Fiscal by a Magistrate, theexecution of such order shall not be stayedin any manner by reason of any steps takenor proposed to be commenced in any courtwith a view to questioning, varying orsetting aside such order.

(5) For the purpose of executing an orderissued by a Magistrate's Court undersubsection (2), the Fiscal or any personacting under his direction may use suchforce as may be necessary to enter any placewhere any movable property to which thatorder relates is kept and seize such movableproperty, or to enter any land, building,structure or other immovable property towhich that order relates and to eject anyperson in occupation thereof, and to deliverpossession of such movable property, land,building, structure or other immovableproperty to the person who is authorized totake possession thereof for and on behalf ofthe Corporation.

40. (1) Where any immovable property,other than any notified property, is requiredto be acquired for the purpose of thebusiness of the Corporation and theMinister, by Order published in the Gazette,approves of the proposed acquisition, thatproperty shall be deemed to be required fora public purpose and may accordingly beacquired compulsori ly under the LandAcquisition Act and be transferred to theCorporation.

Acquisition ofimmovableproperty underthe LandAcquisitionAct for theCorporation-

IX/206


Special grantor lease ofStale propertyto theCorporation.

Power torequireinformationand to inspect.

[§5, 5 of 1963.]

[§5, 5 of 1963.]

[§5, 5 of 1963.]

(2) Any sum payable for the acquisitionof any immovable property under the LandAcquisition Act, for the Corporation, shallbe paid by the Corporation.

41. Where any immovable property ofthe State is required for the purpose of thebusiness of the Corporation, such purposeshall be deemed to be a purpose for which aspecial grant or lease of such property maybe made under section 6 of the State LandsOrdinance, and accordingly the provisionsof that Ordinance shall apply to a specialgrant or lease of such property to theCorporation.

42. (1) The Chairman of the Board ofDirectors or any person authorized in thatbehalf by such Chairman may—

(a) inspect any movable or immovableproperty which had been, or isbeing or is or was intended to be,used for the importation,exportation, storage, sale, supply ordistribution of petroleum; or

(b) inspect any movable or immovableproperty which had been, or isbeing or is or was intended to be,used for the carrying on of suchother business as may be incidentalor conduc ive to the purposesreferred to in paragraph (a);

(c) request any person to furnishinformation with regard to anymatter within his knowledgerelating to any movable orimmovable property referred toin paragraph (a) or paragraph (b);and

(d) request any person to furnishinformation with regard to anymatter within his knowledgerelating to the business ofimportation, exportation, storage,sale, supply or distribution ofpetroleum, whether carried on byhimself or any other person, andthe persons employed for thepurposes of such business includingdetails of their salaries, gratuities,compensation, or other benefitsaccruing to them.

(2) Any person who fails, withoutreasonable cause, to comply with the

provisions of subsection (I) (c) or subsection(1) (d) or who furnishes information [§5,5 of 1963.]knowing such information to be false orobstructs any person in the exercise of thepowers conferred on him by subsection (1)(a) or subsection (!)(&) shall be guilty of anoffence under this Act.

43. (1) Any person who carries onbusiness as an importer, exporter, seller,supplier, or distributor of petroleum shall, ifa written request in that behalf is made tohim by the Corporation, make available foruse by the Corporation any equipment orfacilities maintained by him for the purposeof that business subject to such terms andconditions (including terms as to the chargesto be made for such use) as may bedetermined by agreement between thatperson and the Corporation or, in theabsence of such agreement, by arbitration ashereinafter provided.

(2) Where the terms and conditionssubject to which any equipment or facilitiesof any person referred to in subsection (1) isor arfe to be used by the Corporation haveto be determined by arbitration, thearbitration shall be conducted—

(a) by a single arbitrator nominated byagreement between that person andthe Corporation; or

(b) in default of such agreement, by twoarbitrators nominated respectivelyb y t h a t p e r s o n a n d theCorporation.

(3) Where in any case referred to inparagraph (b) of subsection (2) there is adifference of opinion among the twoarbitrators in respect of any matter, thematter shall be referred for decision by anumpire chosen by them, and, if they areunable to agree, by an umpire appointed forthe purpose by the District Court ofColombo on application made by any partyto the arbitration proceedings.

No stamp duty shall be payable in respectof any application under this subsection.

Each party shall be liable to pay in equal-shares the amount of the fee payable to anumpire chosen or appointed under thissubsection.

Power ofCorporation tomake use ofequipment andfacilities ofother persons.

IX/207


Notice topersonsentitled tomake claims tothecompensationpayable underthis Act inrespect of anyproperty vestedin orrequisitionedfor theCorporation.

Provisions tobe compliedwith by theChairman onthe receipt ofclaims tocompensation.

(4) The decision of a single arbitrator orwhere there are two arbitrators their agreeddecision, or in any case referred to insubsection (3) the decision of an umpire,shall be final and conclusive for thepurposes of this section and shall be bindingon the Corporation and on the personwhose equipment or facilities is or are to beused by the Corporation.

(5) Regulations may be made in respectof all matters relating to or connected withthe conduct of proceedings upon arbitrationunder this section.

PART IV

COMPENSATION

44. Where any property is vested in orrequisitioned for the Corporation, theChairman of the Board of Directors shall,by notice published in the Gazette and insuch other manner as may be determined byhim, direct every person who was interestedin such property immediately before thedate on which such property was so vestedor requisitioned to make, within a period ofone month reckoned from the date specifiedin the notice, a written claim to the whole orany part of the compensation payable underthis Act in respect of such property, and tospecify in the claim—

(a) his name and address,

(b) the, nature of his interest in suchproperty,

(c) the particulars of his claim, and

(d) how much of such compensation isclaimed by him.

45. Upon the receipt of any claim madeunder section 44 to the compensationpayable under this Act in respect of anyproperty vested in or requisitioned for theCorporation, the Chairman of the Board ofDirectors shall cause the followingdocuments to be sent to the claimant byregistered letter through the post :—

(a) a copy of any such report in regard tothe condition of the aforesaidproperty as has been made by or

under the authority of theCorporation under any regulationmade under this Act, if a copy ofthat report has not already beenserved on the claimant;

(b) a copy of any such assessment of thecompensation payable under thisAct in respect of the aforesaidproperty as has been made by orunder the authority of theCorporation;

(c) a notice requiring the claimant, withinthe time specified in the notice :—

(i) to furnish to the Corporation awritten statement setting outwhether or not he agrees withthe report referred to in thepreceding paragraph (a) andthe assessment referred to inthe preceding paragraph (b)and, if he does not so agree,any objections that he mayhave to such report andassessment, and the groundsof such objections; and

(ii) to produce to the Corporationall documents, and inparticular the document inregard to the condition of theaforesaid property, relied onby him in support of any suchobjection.

46. (I) The C h a i r m a n of t h eC o r p o r a t i o n s h a l l r e f e r tp t h eCompensation Tribunal for determinationthe amount of the compensation payable inrespect of any property vested in orrequisitioned for the Corporation and shalltransmit to the Tribunal all claims made tosuch compensation, together with alldocuments furnished by the claimants insupport of their claims, and all documentscopies of which have been served on ortransmitted to the claimants by theCorporation.

(2) A reference made under subsection (1)to the Compensation Tribunal is hereafterin this Act referred to as a " reference for an^award as to compensation ".

Reference totheCompensationTribunal for anaward as tocompensationin respect ofany propertyvested in orrequisitionedfor theCorporation.

IX/208


Compensationin respect ofpropertiesvested in theCorporation.

[§2, Law 50 of1973.]

Compensationin respect ofpropertyrequisitionedfor theCorporation.

47. (1) The amount of compensation tobe paid under this Act in respect of anyproperty vested on any date in theCorporation shall be the actual price paidby the owner for the purchase of suchproperty and an additional sum which isequal to the reasonable value of anyadditions and improvements made to suchproperty by any person who was interested,or if such purchase price is notascertain able, be an amount equal to theprice which such property would havefetched if it had been sold in the openmarket on the day on which the propertywas vested in the Corporation ;

Provided that where such propertyconsists of movable property or anythingattached to the earth or permanentlyfastened to anything attached to the earth, areasonable amount for depreciation shall bededucted from the amount which representsthe price actually paid for its purchase bythe person entitled to the compensationpayable in respect of such property, if suchcompensation is based on such price;

Provided, further, that where suchproperty consists of land or buildings, theamount of compensation to be paid shall bean amount equal to the price which suchland or buildings would have fetched if suchland or buildings had been sold in the openmarket on the day on which such land orbuildings was or were vested in theCorporation.

(2) Where any right, interest or benefit inany movable or immovable property derivedunder the terms of any arrangement,agreement (formal or informal), lease ornotarially executed instrument is vested int h e C o r p o r a t i o n , t h e a m o u n t ofcompensation to be paid under this Actshall be the actual price paid by the holderfor the acquisition of such right, interest orbenefit:

Provided that a proportionate amountshall be deducted on account of the periodfor which the holder has enjoyed such right,interest or benefit.

48. (1) The amount of compensation tobe paid in respect of any propertyrequisitioned for the Corporation shall be asum equal to the rent which might

reasonably be expected to be payable by atenant in occupation of such property,during the period of the requisition, under alease granted immediately before thebeginning of that period whereby the tenantundertakes to pay all usual rates and taxesand to bear the cost of the repairs andinsurance and the other expenses, if any,necessary to maintain such property in astate to command that rent.

(2) The compensation under subsection(1) in respect of any property shall beconsidered as accruing due from day to dayduring the period of the requisitioning ofsuch property and shall be apportionable inrespect of time accordingly.

48A. In determining compensationpayable in respect of any land vested in, orrequisitioned for, the Corporation,—

(i) where any building had beenconstructed on, or any otherimprovements had been effected to,such land, on any date prior to thedate on which such land was sovested or requisitioned, by anyforeign-owned petroleum company,no account shall be taken of suchbuilding or improvements in thecomputation of the market value ofsuch land under section 47 or ir therent payable under section 48, asthe case may be, and

(ii) any sum which had been paid inadvance to the owner of such landas rent for any period after the dateon which such land was so vested,or requisitioned, as the case may be,shall be deducted from the amountof the compensation.

49. (1) The amount of compensation tobe paid to any person in respect of anyproperty requisitioned for or vested in theCorporation shall be proportionate to theinterest such person had in such property onthe date on which the property wasrequis i t ioned f o r or ves ted in the

In determiningcompensation,certainbuildings notto be takeninto accountand certaindeductions tobe made.

[§3, Law 50 of1973.]

Proportionatepayment of compensation,and interest oncompensation,until date ofpayment.

IX/209


Whencompensationin respect ofvested properlyaccrues due.

Right locompensation.

Deductionsfromcompensation.

[§6,5ofl963.]

Corporation:Provided, however, where property

requisitioned is subsequently vested in theCorporation, the apportionment of thecompensation in respect of such propertyshall be proportionate to the interest anyperson had in such property on the date onwhich such property was requisitioned forthe Corporation.

(2) Any compensation payable under thisAct shall carry interest, as from the date onwhich it accrues due until payment, at suchrate as may be determined by the Ministerwith the concurrence of the Minister incharge of the subject of Finance.

50. The compensation payable in respectof any property vested in the Corporationshall be considered as accruing due from thedate on which that property was so vested.

51. No compensation in respect of anyproperty vested in or requisitioned for theCorporation shall be paid to any personunder this Act unless such person is entitledto such compensation according to anaward (hereafter in this Act referred to as an" award as to compensation ") made by theCompensation Tribunal under this Act.

52. The following provisions shall applyin any case where a person is entitled tocompensation in respect of any propertyrested in or r e q u i s i t i o n e d for theCorporation:—

(a) where any sum has been certifiedunder the hand of theCommissioner-General of InlandRevenue to the Corporation to bedue from such person as tax onincome or profits, or as personaltax, then, from the amount of thecompensation to which such personis entitled, the Corporation shallpay the sum so specified to theCommissioner-General of InlandRevenue, or

(aa) where any sum has been certifiedunder the hand of theCommissioner of Labour to theCorporation to be due from suchperson as a gratuity or othermonetary benefit to any otherperson whose employment has been

terminated under the provisions ofsection 5J, then, from the amountof such compensation, theCorporation shall pay the sum sospecified to the Commissioner ofLabour for the payment of suchgratuity or other benefit, or

(b) where the amount of suchcompensation has been applied inpayment of any sum referred to inthe preceding paragraphs (a) and(aa), the balance if any, of that [§6,5 of 1963.]amount remaining after it has beenso applied shall be paid by theCorporation to the person orpersons entitled thereto.

53. The mode and manner of payment Mode ofof compensation under this Act shall be payment ofdetermined by the Minister in consultation compensation.with the Minister in charge of the subject of Finance.

54. Where any compensation payable toany person under this Act is not accepted byhim when it is tendered to him or wheresuch person is dead or not in existence ornot known, it shall be paid to any DistrictCourt or Primary Court, according as theamount of the compensation exceeds ordoes not exceed one thousand five hundredrupees, to be drawn by the person orpersons entitled thereto.

54A. Notwithstanding anything to thecontrary in this Act. or in any other writtenlaw, the Corporation may pay to any personas compensation in respect of propertyvested in, or requisitioned for, theCorporation under this Act, where suchvesting or requisitioning is made on or afterthe first day of August, 1970, such amountas the Minister may, pursuant to anyagreement reached between the Ministerand such person in respect of the amount ofcompensation for such property, direct theCorporation to pay.

54B. (I) The Chairman of the Board ofDirectors may before the determinatibn of aclaim for compensation under this Act payto a person whom he considers entitled tosuch compensation an advance, ^nd anysum so paid shall be deducted from theamount of the compensation awardedto him.

Provision forcases wherecompensationis not accepted,&c.[§4. Law 50 of1973.]

Compensationpayable inrespect ofproperty vestedin orrequisitionedfor theCorporationon or afterAugust 1,1970-[§5. Law 50 of1973.]

Power of theChairman ofthe Board ofDirectors topay advanceson account ofcompensation.[§5, Law 50 of1973.]

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Finality as topayment ofcompensation.[§5, Law 50 of1973.]

Constitution oftheCompensationTribunal.[§6. Law 50 of1973.]

Remunerationof members ofthe Tribunaland expensesof theTribunal.[§7, Law 50 of1973.]

(2) Where any sum is paid after the dateof commencement of this Act to any personas an advance on account of compensationto be paid to such person under this Act inrespect of any land vested in orrequisitioned for the Corporation, suchpayment shall be deemed to have been paidunder subsection (1) and accordingly suchsum shall be deducted from the amount ofthe compensation awarded to such person.

54C. Where compensation under thisAct has been paid in respect of any land inaccordance with the provisions of this Act,no further claim against the Corporationeither by the person to whom suchcompensation was paid or by any otherperson shall be allowed and no action shallbe instituted against the Corporation in anycourt in respect of such further claim.

PART V

COMPENSATION TRIBUNAL

55. (1) There shall be established for thepurposes of this Act, a CompensationTribunal (hereinafter referred to as the" Tribunal"), consisting of five membersappointed by the President of whom at leastthree shall be persons with judicial or legalexperience.

(2) A person shall be disqualified forbeing appointed or being a member of theTribunal if he is a Member of Parliament ora member of the Corporation.

(3) A member of the Tribunal withjudicial or legal experience shall beappointed to be the Chairman, and anothermember with similar experience shall beappointed to be the Vice-Chairman, of theTribunal by the President.

(4) Every member of the Tribunal shall,unless he earlier vacates office or is removedtherefrom by the President, hold office for aperiod of three years. Any member of theTribunal who vacates office by effluxion oftime shall be eligible for reappointment.

56. (1) The members of the Tribunalshall be remunerated at such rates as may bedetermined by the Minister with theconcurrence of the Minister in charge of thesubject of Finance.

(2) The remuneration of the members ofthe Tribunal and other expenses of theTribunal shall be paid by the Secretary tothe Ministry out of the funds provided forthe purpose by the Corporation.

57. (1) The Chairman shall convenemeetings of the Tribunal for thecons ide ra t ion and de te rmina t ion ofreferences for awards as to compensationmade to the Tribunal.

(2) Three members of the Tribunal, oneof whom shall be the Chairman or Vice-Chairman, shall be summoned to a meetingof the Tribunal. The members to besummoned shall be determined by theChairman.

(3) Where the Chairman or the Vice-Chairman is summoned to a meeting of theTribunal, the Chairman or Vice-Chairman.as the case may be, shall preside at thatmeeting,

(4) A member of the Tribunal who isinterested in any matter which is a subject ofa reference for an award as to compensationor who has been consulted as an attorney-at-law or in any other capacity in regard tothat matter by or on behalf of any personinterested therein shall not participate inany proceedings of a meeting of theTribunal on such reference.

(5) A meeting of the Tribunal may fromtime to time be postponed or adjourned.

58. (1) Every reference for an award asto compensation shall be considered anddetermined at a meeting of the Tribunal.

(2) The Chairman shall fix a date, timeand place for the consideration anddetermination by the Tribunal of eachreference for an award as to compensation.

59. (l)'The Chairman or the Vice-Chairman of the Tribunal shall, for thepurposes of the consideration anddetermination of any reference for an awardas to compensation, have all the powers of aDistrict Court—

(a) to summon and compel theattendance of witnesses,

Meetings of theTribunal.[§8, Law 50 of1973.1

ProceedingsbeforeTribunal.[§9, Law 50 of1973.]

Power tosummerwitnesses, &c.[§10, Law 50 of1973.]

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Persons givingevidence boundto stale thetruth.

Determinationof theTribunal.

Tribunal mayregulate itsprocedure atmeetings.

Chairman ofthe Board ofDirectors andclaimants tocompensationto be given anopportunity ofbeing heardbefore themaking of anaward.

Provision inregard to evidence.

(b) to compel the production ofdocuments; and

(c) to administer any oath or affirmationto witnesses.

(2) Every person who attends a meetingof the Tribunal as a witness shall be paid astravelling and other expenses such sum asshall be determined by the Chairman or inhis absence the Vice-Chairman of theTribunal.

60. Every person giving evidence on anymatter before a meeting of the Tribunalshall be bound to state the truth on suchmatter.

61. (1) The determination made at ameeting of the Tribunal on any matterconsidered at that meeting shall be deemedto be the determination of the Tribunal onthat matter.

(2) Where the members of the Tribunalwho consider any matter disagree withregard to the determination on that matter,the determination of the majority of themshall be the determination of the Tribunalon that matter, and, where the members areequally divided in their opinion, thedetermination supported by the Chairmanof the meeting by which that matter isconsidered shall be the determination of theTribunal on that matter.

(3) Every determination of the Tribunalshall contain the reasons therefor.

62. Subject to the provisions of this Actin respect of procedure, the Tribunal maylay down the procedure to be observed atmeetings of the Tribunal.

63. Where a reference for an award as tocompensation is made to the Tribunal, theTribunal shall, before making such awardgive the Chairman of the Board of Directorsand every person who has made a claim tocompensation an opportunity of beingheard either in person or by an agentauthorized in that behalf.

64. (1) Where a copy of any reportmade by or under the authority of theCorporation in regard to the condition of

any property vested in or requisitioned forthe Corporation is served on any claimantto compensation in respect of such property,then, in so far as that claimant is concerned,that report shall, in any proceedings relatingto the claim of the claimant before theTribunal, be prima facie evidence of thefacts stated therein until the contrary isproved.

(2) Where a copy of the Corporation'sassessment of compensation in respect ofany property is served on any claimant tosuch compensation, that assessment shall, inany proceedings relating to the claim of theclaimant before that Tribunal, be primafacie evidence of the facts stated thereinuntil the contrary is proved.

(3) Where a report in regard to thecondition of any property vested in orrequisitioned for the Corporation, or theCorporation's assessment of anycompensation, is prima facie evidence of thefacts stated therein under the precedingprovisions of this section in any proceedingsrelating to a claim to compensation beforethe Tribunal, then, the claimant shall not beentitled to produce in those proceedings anydocument in support of any objection tosuch report OF assessment unless thatdocument had been produced to theCorporation as required by or under thisAct.

65. (1) Where a reference for an awardas to compensation is made to the Tribunalin respect of any property vested in orrequisitioned for the Corporation, theTribunal shall, after considering all suchmatters and hearing all such witnesses asmay be necessary for the purpose and aftercomplying with the provisions of section 63and section 64, make, save as otherwiseprovided in subsection (2), an awarddetermining—

(a) whether or not each person who hasmade a claim to compensation is aperson entitled to compensation,and if so, the capacity in which he isso entitled,

(b) the amount of the compensationpayable in respect of such propertyin accordance with the provisions ofthis Act, and

An award as tocompensationby the Tribunalon a reference.

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Order fixingprices andprescribingconditions ofsale ofpetroleum.

(c) t h e a p p o r t i o n m e n t of t h ecompensation among the personsentitled to compensation:

Provided that where there is a dispute asto the persons entitled to such compensationor as to the apportionment of suchcompensation among the persons entitled tosuch compensation, the Tribunal shall defermaking an award and shall refer the disputefor decision to the District Court withinwhose local jurisdiction such property,being immovable property, is situate, orbeing movable property, was kept at thetime it was so vested, and shall, after suchCourt makes its decision on such dispute,make an award in accordance with suchdecision.

(2) Where no person makes a claim tocompensation in respect of any propertyvested in or requisitioned for theCorporation, it shall not be necessary todetermine in the award under this sectionthe matters specified in paragraphs (a) and(c) of subsection (1) and to comply with theprovisions of subsection (3) relating to thegiving of notice of the award to claimants tocompensation.

(3) The Tribunal shall cause writtennotice of its award to be given to theChairman of the Board of Directors and theclaimants to compensation.

(4) An award of the Tribunal shall befinal and shall not be called in question inany court.

PART VI

GENERAL

66. (1) The Minister may, with theconcurrence of the Minister in charge of thesubject of Finance, by a Petroleum PriceOrder (hereafter referred to as an " Order "),in respect of petroleum of any class ordescription referred to in the Order, specifyor determine any one or more of thefollowing matters;—

(a) the maximum spot price or rate,

(b) the minimum spot price or rate,

(c) the spot price or rate,

(d) the maximum amount or percentageof discount or rebate,

(e) the formula fixing the price,

at which such petroleum shall be sold,supplied or delivered.

(2) Any Order under subsection (I)may—

(a) be limited in operation to petroleumsold, supplied or delivered by theCorporation, or

(b) be made applicable to any petroleumsold, supplied or delivered whetherby the Corporation or any otherperson,

(c) be limited in operation to anyparticular place or area and induration for any specified time orperiod,

(d) prescribe the conditions of sale,s u p p l y or d e l i v e r y of a n ypetroleum.

(3) Every Order under this section shallcome into operation when such Order ismade and signed by the Minister or on suchlater date as may be specified in the Order.

(4) After an Order has been signed by theMinister, public notice thereof shallforthwith be given—

(a) by publication of the Order in theGazette; and

(b) in such other manner as may beprescribed.

(5) An Order under this section, uponpublication in the Gazette, shall be deemedto be as valid and effectual as if it wereherein enacted.

(6) Any Order under subsection (1) maybe altered, varied, modified or revoked bythe Minister, with the concurrence of theMinister in charge of the subject of Finance.

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(7) Any Order under this section mayprovide that any such provisions of theControl of Prices Act or any regulationsmade thereunder, as may be specified in theOrder shall, with such modifications as maybe so specified, apply in relation to thatOrder.

*68. (1) The Minister may makeregulations for the purpose of carrying outor giving effect to the principles andprovisions of this Act.

(2) In particular and without prejudice tothe generality of the powers conferred bysubsection (1), the Minister may makeregulations in respect of the followingmatters:—

(a) any matter required by this Act to beprescribed or in respect of whichregulations are authorized by thisAct to be made ;

(b) the establishment and administrationof a Reward Fund for suchpurposes as may be prescribed;

(c) the prevention of the theft of, or adamage to, or the commission ofnuisance on, any property used bythe Corporation, and theimposition of penalties on, and therecovery of compensation from,persons responsible for such theft,damage or nuisance;

(d) any matter regarding the assessmentand payment of compensationunder this Act,

(3) Every regulation made by theMinister shall be published in the Gazetteand shall come into operation on the date ofsuch publication or on such later date asmay be specified in the regulation.

(4) Every regulation made by theMinister shall, as soon as convenient afterits publication in the Gazette, be broughtbefore Parliament for approval. Anyregulation which is not so approved shall bedeemed to be rescinded as from the date ofdisapproval, but without prejudice toanything previously done thereunder.

Offences andpenalties.

(5) Notification of the date on which anyregulation made by the Minister is sodeemed to be rescinded shall be published inthe Gazette.

(6) Any regulation made by the Ministershall, when approved by Parliament, be asvalid and effectual as if it were hereinenacted. Notification of such approval shallbe published in the Gazette.

69. (1) Every person who—

(a) contravenes or fails to comply withany section or provision of this Actor any regulations made thereunderor any order or directions lawfullygiven under this Act or anyregulations made thereunder shallbe guilty of an offence under thisAct;

(b) aids or abets any person or persons inthe commission of an offence underthis Act shall be guilty of an offenceunder this Act

(bb) contravenes or fails to comply with [§9,5 of 1963.]the provisions of any Order madeby the Minister under section 5csnail be guilty of an offence underthis Act;

(bbb) sells, alienates or disposes of any [§14, Law 2 ofequipment of the Corporation 1976]without the prior authority of theCorporation, or causes wilfuldamage to or defaces any suchequipment or contaminates anypetroleum product, or sells or isconcerned in the sale of anypetroleum product, having reasonto believe that it is contaminated,shall be guilty of an offence underthis Act.

(c) attempts to commit or does any actpreparatory to or in furtherance ofthe commission of an offence underthis Act shall be guilty of an offenceunder this Act.

(2) Every person who commits an offenceunder this Act shall, on conviction after

• Section 67 is repealed by Law No. 2 of 1976.

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Pramod N Hettihewa

Regulations


Power ofBoard ofDirectors tocompoundclaims.

Corporationexempted fromthe provisionsof thePrescriptionOrdinance.[§15, Law 2 of1976.]

Liability ofdirectors andcertain officersof a bodycorporate foroffencecommitted bythat body.

summary trial before a Magistrate—

(a) for the first offence be liable toimprisonment of either descriptionfor a period not exceeding one yearor a fine not exceeding onethousand rupees, or both suchimprisonment and fine;

(b) for a subsequent offence, be punishedwith imprisonment of eitherdescription for a term not exceedingtwo years, and shall, in addition, beliable to a fine not exceeding twothousand rupees.

(3) Notwithstanding anything to thecontrary, every offence under this Act shallbe a cognizable offence within the meaningand for the purposes of the Code ofCriminal Procedure Act.

70. The Board of Directors maycompound any claim or demand madeagainst the Corporation by any person forsuch sum or other compensation as theBoard may deem sufficient.

70A. (1) The claims of the Corporationagainst any person whomsoever, for therecovery of any sum of money which is dueto the Corporation, shall not be held to bebarred, limited or prejudiced by anyprovisions of the Prescription Ordinance.

(2) The provisions of subsection (1) ofthis section shall—

(a) be deemed for all purposes tohave come into operation onMay 29, 1961 ;

(b) not apply to any sum of money whichshall be or become due to theCorporation on or after the date ofcommencement of this Act, and

(c) have effect notwithstanding anythingto the contrary in any other writtenlaw.

71. When an offence under this Act iscommitted by a body corporate, everyperson who at the time of the commission ofthe offence was a director, general manager,secretary or other similar officer of the bodycorporate shall be deemed to be guilty ofthat offence unless he proves that that

offence was committed without his consentor connivance and that he exercised all suchdiligence to prevent the commission of thatoffence as he ought to have exercised havingregard to the nature of his functions and inall the circumstances.

72. (1) Where any property is subject toa mortgage or lease at the time when thatproperty is vested in the Corporation underthis Act, the rights of the mortgagee or ofthe purchaser of the mortgaged propertyunder a mortgage decree, or of the lessee,shall, notwithstanding the provisions ofsection 35 (3), be limited to any sum paidunder this Act as compensation in respect ofsuch properly.

(2) Nothing in this Act shall affect theright of a mortgagee to have recourse to anyproperty or security other than that vestedin the Corporation under this Act for therecovery of the debt secured by themortgage.

(3) Where any property is subject to anarrangement, agreement (formal orinformal), lease, or notarially executedinstrument at the time when that property isrequisitioned for the Corporation under thisAct, the rights of the parties to sucharrangement, agreement, lease or instrumentshall, notwithstanding the provisions ofsection 36 (6), be limited to any sum paidunder this Act as compensation in respect ofthat property.

73. Any company or other body ofpersons may, notwithstanding anything tothe contrary in any written law orinstrument relating to its functions, enterinto and perform or carry out all suchcontracts and agreements with theCorporation as may be necessary for theexercise of the powers of the Corporation.

74. (1) No suit or prosecution shall lie—

(a) against any Minister for any actwhich in good faith is done orpurports to be done by him underthis Act; or

(h) against the Corporation for any actwhich in good faith is done orpurports to be done by theCorporation under this Act; or

Provisions inregard tomortgage andleases.

Power ofcompanies,&c., to enterinto contractswith theCorporation.

Protection foraction takenunder this Actor on thedirection of theBoard ofDirectors.

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(c) against any member, officer, servantor agent of the Corporation for anyact which in good faith is done orpurports to be done by him underthis Act or on the direction of theBoard of Directors.

(2) Any expense incurred by theCorporation in any suit or prosecutionbrought by or against the Corporationbefore any court shall be paid out of thefunds of the Corporation, and any costspaid to, or recovered by, the Corporation inany such suit or prosecution shall becredited to the funds of the Corporation.

(3) Any expense incurred by any suchperson as is referred to in paragraph (c) ofsubsection (1) in any suil or prosecutionbrought against him before any court inrespect of any act which is done or purportsto be done by him under this Act or on thedirection of the Board of Directors shall, ifthe court holds that such act was done ingood faith, be paid out of the funds of theCorporation, unless such expense isrecovered by him in such suit orprosecution.

deemed for all purposes to have compliedwith the provisions of this Act or theregulations made thereunder.

78. In this Act, unless the context Interpretation.otherwise requires—

" Board of Directors " means the Board ofDirectors constituted under thisAct;

"Compensation Tribunal" means theCompensation Tribunal establishedunder this Act;

" Director" means a member of theBoard of Directors;

"foreign-owned petroleum company" [§ l i ,Law50means any foreign-owned of l973-]petroleum company within them e a n i n g of t h e d e f i n i t i o nof " fore ign-owned pe t ro leumcompanies" in the CeylonPetroleum (Foreign Claims)Compensation Act, No. 19 of1965.*

No writ toissue againstperson orproperly of amember of theCorporation.

This Act toprevail overother writtenlaws.

75. No writ against person or propertyshall be issued against a member of theCorporation in any action brought againstthe Corporation.

76. The provisions of this Act shall haveeffect notwithstanding anything containedin any other written law, and accordingly inthe evernt of any conflict or inconsistencybetween the provisions of this Act and suchother law, the provisions of this Act shallprevail.

Rectification of 77. Where, in the exercise of theirfailures and powers, performance of their functions or the discharge ot their duties, under this Act,

it is found that there has been, at any stage,a failure or omission on the part of theMinister, the Chairman of the Board ofDirectors, the Corporation or any officerauthorized by anyone of the aforementionedto comply with any provisions of this Act orregulations made thereunder, such personmay rectify such failure or omission at anytime and thereupon any such person shall be

omissions.

principles or theprices shall be

includes anyof calculation of

"formula " means thebasis on whichcalculated andspecified methodsuch prices ;

"immovable property " means land andincludes any interest in, or anybenefit to arise out of any land, andany leasehold or other interest heldby any person in any State land,and also things attached to theearth or permanently fastened toanything attached to the earth ;

"motor vehicle " has the same meaning asin the Motor Traffic Act;

" person who was interested "

(a) in relation to any immovableproperty vested in orrequisit ioned for theCorporation, means a personwho, immediately before the

' See Lisi of Enactments omitted from the Revised Edition.

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[§16, Law 2 of1976.]

date on which such propertywas so vested or requisitioned,had an interest in suchproperty as owner, co-owner,mortgagee, lessee orotherwise, whether absolutelyfor himself or in trust for anyother person; and

(b) in relation to any movableproperty vested in theCorporation, means anyperson who, immediatelybefore the date on which suchproperty was so vested, hadan interest in such property asowner, co-owner, mortgagee,pledgee, hirer or otherwise,w h e t h e r a b s o l u t e l y fo rhimself or in trust for anyother person;

"petroleum" means petroleum andincludes any product, or by-product, which may be derived,purchased, prepared, developed,c o m p o u n d e d , m a d e , o r

manufactured, from hydro-carbonsor hydro-carbon compounds, andany inorganic and natural orsynthetic organic compound ormixture which has been used or isbeing used or is intended to be usedas agricultural chemicals ofwhatever description for thepurpose of destroying or inhibitingor controlling the action of plant oranimal pest and fungus growth andto increase the productivity andquality of plant life.

" property requisitioned for theCorporation" means propertyrequisitioned for the Corporationby virtue of a requisitioning Order,and any cognate expression shall beconstrued accordingly; and

" property vested in the Corporation"means property vested in theCorporation by virtue of a vestingOrder, and any cognate expressionshall be construed accordingly.

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CEYLON PETROLEUM CORPORATION [Cap. 220 · ceylon petroleum corporation [cap. 220 chapter 220 ceylon...

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