OPA AT YOUR SERVICE

Purchase of land and building without deeds

Question: A Building received by Mr. L (land lord) from the government of Sri Lanka in 1952 during Minister Pieter Keuneman's period (owner of more assets compelled to distribute to poor).

Then Mr. L (land lord) rented out the said house to Mr. T (tenant).

Mr. L. expired in 1990 (Without last will) and Mr. T (Tenant) refused to hand over the house back to the six children of Mr. L (all are alive).

Case was filed and with the court order Mr. T was paid Rs. X by the children's of Mr. L to vacate the house and the premises is now in vacant position but no original deed for the building and copy of judgement too.

Even though street line, copy of case procedure were available. Please advise me the following.

* If I purchase this building from the children will I be a legal owner?

* If not, please advise me how should I become a legal owner?

* Will bank provide loan on this property?

* Is it vital to obtain copy of judgement?

Geetha

Nawalapitiya

Answer: Although the Courts has directed vacant possession consequent to paying off the tenant, you have not stated whether a testamentary case has been filed and concluded. Only if the testamentary case has been concluded, the six children of Mr. L. can dispose of the property. If not you will be in trouble purchasing this property. If the testamentary case has been gone through, the ownership of this property would have been established. If not by providing the description of the land or property to the Land Reforms Commission (LRC) Head Office or the Regional office you may be able to obtain information of the LRC order to rest this land or property to Mr. L. yes it is vital to obtain a copy of the judgement if the ownership of the property by the six children of Mr. L has been proved. Even the testamentary case proceedings will be useful. Unless you have a clear title for the property, it will be difficult to obtain a bank loan on this property. Suggest you discuss this matter in detail with a lawyer who can have access to the available information.

Bank of Ceylon - National pension scheme - 1981

Question: Further to my letter dated December 12, 2009 on the above subject, I wish to inform you that even the pension should be increased from the 26th year, i.e. from Rs. 1946.92 to 3358.60 for the monthly deposit of Rs. 200. But the bank has paid Rs. 1946.92 as usual for the 1st (first) month of 26th year.

I shall be much thankful to you if you would kindly take necessary actions to rectify this issue.

L. P. R. Mallikarachchi

Pannipitiya

Answer: In our reply to your question of December 12, 2009 which was published in the Daily News - OP At Your Service page on Thursday, January 21, 2010, we have suggested what course of action you should follow. All that is available on this subject is newspaper articles but the original brochure by the Bank of Ceylon seems to be not available even with the Bank of Ceylon. Since there is no clarity on this matter but according to the paper cuttings forwarded to us you may make a claim for the bonus through the Financial Ombudsman.

As regards payment of increased pension from the 26th year, please read our reply to K.P. Mallikarachchi of Ellagawa in the Daily News - OPA At Your Service page on Thursday February 25,2010. Accordingly, only if you had commenced drawing the pension from the 26th year (not the 21st year) and contributed for 25 years, you will be entitled to double the pension i.e. Rs. 3358/60 instead of Rs. 1946/92 for your monthly deposit/Contribution of Rs. 200.

Re construction of deed and EPF/ETF for retires

Question: I look forward to your professional advice published in the 'Daily News - OPA At Your Service' for the following queries.

Query No. (i)

I am a native of Jaffna. As a copy of the deed of my parental house situated at Kopay South, Kopay was urgently needed, I had applied for the same, by my letter dated 28/05/2008 addressed to the Addl. Registrar of Lands, Jaffna. I had furnished him, the number of deed bearing No. 13593 and the name of the area where it is situated - 'Mathiyadai' in fact, the property was gifted to my father as 'dowry' by his father-in-law.

Gifts of land/properties, monies are given to the male partner according to the law of 'TheSawalamai'. I was rather disappointed to get a reply stating, that the application submitted in reference to get a copy of the same was impossible as the original document is "old".

I shall be thankful. if you would advice me as to how I could originate a deed under the said circumstances.

Query No. (ii)

If a retired public servant got an employment at the age of 62 years. for the Post of Documentary Clerk in a privately run Welfare Association comprises member of a Government Department.

May I know whether he is entitled for EPF/ETF benefits from the time he was made permanent in that post? In case, the organisation does not consider for such benefits, what is the alternative left for him to obtain such benefits?

Christoble Luther Nugegoda

Answer: No i. According to you the Additional Registrar of Lands, Jaffna has informed you that it is not possible to get a copy of the Deed due to the non availability of original deed in good state.

If you know the lawyer who prepared the deed or his office, you may be able to get hold of the Protocol copy retained by the lawyer. Failing if you know the date or the period of registration you can get a lawyer to trace the Registration in the Registration book of the Jaffna Land Registrar. We understand that the Registration Book of the Jaffna land Registrar is in good order. The lawyer will be able to prepare a new deed after tracing the Registration.

No (ii) Even if you are a retired public servant pensioner or not and even if you are over 62 years, there is no excuse for non payment of EPF and ETF contribution. You can complain to the Labour Department office in the area of your workplace. The organisation will have to make the arrears of contribution as well with a penalty.

Advise on inability of withdrawal of deposits from Finance Companies

Questions: Due to prevailing situation faced by certain Finance Companies, we are unable to get our-money-back-upon maturity as these reputed companies say that they unable to pay us. Twice we were compelled to re invest the money and now we are offered a payment agreement with conditions favouring them, which we have to sign to get our money on instalment basis.

The agreement says: we are placing the deposit with the company for its discretionary management on the following conditions:

1. Period of repayment (varies according to the amount - 1 year for amounts less than 1 lakh).

2. Monthly instalment to be determined by the management and to be reviewed periodically. (part of capital plus interest to be decided by them on reducing balance).

3. The management has the discretion in consultation with the investor to revert the loan back to a fixed deposit and/or to repay in full and/or reschedule the instalment and/or period mentioned. (I assume they are going to treat our money as a loan).

4. The agreement shall be governed by the law of The Democratic Socialist Republic of Sri Lanka and all legal action or proceeding if any shall be subject to exclusive jurisdiction of the competent Courts of Sri Lanka. (Isn't the Fixed deposit certificate already an agreement, which is governed by the law of Sri Lanka?).

5. We have read, understood and agree to the above terms and conditions and to be signed by depositors).

6. The company hereby agree and confirm to repay above funds on equal monthly instalment basis as per the terms and conditions (1-9) listed above (to be signed by two signatories).

Kindly advice, for the benefit of all such depositors, the legal implications we will have, if we sign this agreement, at a time when the original agreement by these finance companies for payment at maturity has not been honoured. Isn't the Fixed deposit certificate already an agreement which is governed by the law of Sri Lanka which these companies must honour without harassing the depositors with further agreements implicating us?

Peggy

Colombo

Answer: Yes, most people who invested their money with Finance Companies are in trouble except a few Finance Companies which continue to be stable.

The Central Bank publishes from time to time the list of approved or registered Finance Companies. Here again the Central Bank does not take the responsibility of the depositors but only monitor such Finance Companies and tries to save them from collapsing if possible. You are some what fortunate in the sense you still have a chance of recovering part if not in full your capital at least through over a period of time.

Nothing much that the Government or the Central Bank can do. In the case of one Finance Company the Depositors went to Courts and the Courts have appointed a group of Accountants to settle the Depositors in isntallment by disposing the Assets of that Finance Company.

You are better off getting somethings instead of nothing. It is very unfortunate but it is so. If you 'don't agree' to the new terms of these Finance Companies now in trouble, you will lose everything.

Questions and Answers

Renewal of Driving Licence 'Dual Purpose'

Question: Recently I received my Driving Licence to include motor cycle class in it. So I handed over old one thorough the 'learner'. Later I received the new one after a year. But later I noticed my 'NIC' number has been erroneously printed in the new Driving Licence. My real No. is 550980541V. But printed as 559980541V.

Will this be a problem to me? Or may I ignore it and use it. Because as you know it takes years and years to get a new licence from RMV.

H.M.H.M. Wijethunga

Kurunegala

Answer: It is not proper for you to continue using your driving licence knowing well that the NIC number on it is wrong. You never know when or whether you will get into unnecessary trouble. It is best that you get the NIC number corrected in your licence. There are two ways of doing it.

One is to apply for a new licence through the Kandy or Kurunegala District offices of the Motor Traffic Department but you will get the new Smart Card licence which will have a renewal date after four to eight years depending on the category of vehicles for which the driving licence is issued.

The other is for you to take your driving licence and your NIC and meet the Deputy Commissioner of Motor Traffic at Werahera on a week day. If you go early in the day you may be able to get the alteration to your licence done on the same day.