Opa At Your Service

Questions and Answers

Depositor in failed finance company

Question: I am a regular reader of your column in the Daily News paper. Please advise me with regard to the following matter.

I am a depositor of Okanda Finance Co., which was liquidated legally. The court appoint a liquidator as SJMS Associates Tel No 2553179 and 5364293. Recently when I inquired from them with regard to payments, they informed me not to keep any hopes of receiving deposited money as the value of the assets shown by the company is not sufficient to pay depositors’ money.

Question No. 1: Can the Court appoint a liquidator if the value of the assets shown by the company is not sufficient to pay depositors’ money?

Question No. 2: What course of action to be taken by the depositor to recover deposited money?

Bandula Mendis – email.

Answer: The finance company named by you has not been registered with the Central Bank. Some finance companies get the public to invest with them as opposed to taking deposits. Only finance companies taking deposits are required to register with the Central Bank, whilst those companies which accept investment are not legally bound to register with the Central Bank. One can define this as an exploitation of the loophole.

Now there is an Act before Parliament which once passed will cover most loopholes. From your position one can say that the stables are being closed after the horse has bolted.

This finance company we understand went into voluntary liquidation but as they have failed to pay even the liquidator the monthly dues, the liquidate has withdrawn and will be informing Courts.

A liquidator is appointed to dispose assets and settle whatever possible on a priority basis to close the company in liquidation.

Priority will be to settle secured items, like Court order, bank etc. Depositors will be last in the list that too proportionately according to the availability of funds. A few if not all depositors should get together and seek legal advice on the possibility of taking legal action in the District Court against the Directors of this finance company as the only option.

ETF refund

Question: I was employed at Mercantile Credit Ltd (now defunct) from October 1986 to March 1991. Thereafter, I left for overseas employment and returned to Sri Lanka for good in September 2010.

In order to get my ETF refund I visited the ETF office a few weeks back at Narahenpita and after making inquiries with the officer concerned I was informed that there is no record in their system regarding any ETF dues to me from MCL. I inquired from one of my colleagues who worked with me whether there is any one I can talk to in order to get some clarification, unfortunately I was told there was none.

I am requesting your help to enable me to collect my dues which I presume is legitimately due to me.

P M S R Candappa, Ratmalana.

Answer: The information provided by you is insufficient for us to help you. As such we can only give you general advice. You will require your ETF number as well as that of your employer. In case you don’t have your employer’s ETF contribution number, you may be able to get it from one of your colleagues.

With this information you can fill in the front page of the ETF claim application form. As regards the second page where your employer has to fill, there is another form as a substitute for employers not available to fill.

This form will require the Grama Sevaka to certify. You can collect these forms from the ETF office at the Labour Secretariat at Kirula Road, Narahenpita. In case your employer ceased to function before 2000, the records will not be in the system but available in the files. You should meet the member Accountant officer on the first floor of the Labour Secretariat for assistance. For employers with less than 15 employees the Assistant Officer Member Accounts is on the 10th floor.

Energy savings in flood-lit stadiums

Question: In the Daily News of April 28, 2011 you have published wattage of lamps obtained from a stadium in Bombay, India while there are many stadiums in Sri Lanka. Why? You could have got details from Hambantota stadium which was opened recently or from the electrical contractor who did the Dambulla and Hambantota stadia.

The Director (Electrical) of that company is a member of IESL which in turn is a member of OPA. Did the Ministry of Sports refuse to give details? Why can’t matches be played in daylight as some World Cup cricket matches were played recently?

S Sripadmanaban, email.

Answer: We refer to your question and the answer appearing in the Daily News OPA At Your Service page on Thursday, April 28, under the heading ‘Energy Saving/Utilization for cricket’. Your previous question was ‘How many units of electricity is spent in illuminating an outdoor stadium for a period of four hours for a cricket match.’ Your question was not specific to Sri Lanka.

Since the World Cup finals was played in Mumbai – Wankhade Stadium, we chose that in order to provide typical information pertaining to your question.

The Mumbai Stadium information was available on the ‘Web’ and is credible. The cricket stadium in Sri Lanka come under the Board of Control for Cricket and not under the Ministry of Sports thus your assumption is incorrect.

If you had wanted information on Hambantota Stadium you should have been specific. However you seem to be knowing from whom you can obtain this information thus our assistance will not be required. Cricket is a spectator sports so if you play during day time, how many will come to watch it and how many will watch it on TV.

Thus limited over cricket is played at prime time to attract crowds and television viewers that’s how they earn money whilst providing entertainment. If you are very keen on the power consumption of a stadium in Sri Lanka you could also contact the Engineer at Board of Control on Tel 2681602/3/4 Ext 289 as we have failed to even contact him.

Eviction of tenant by landlord

Question: A few weeks ago, a private company as the landlord of office premises, removed the office furniture and files of the tenant, a small association, without prior notice in writing.

A complaint was lodged at the nearest police station and the police are likely to pursue the criminal offence on the part of the landlord.

The rent is paid half-yearly and the tenant had paid rent up to December last year. The next payment is due in June 2011.

The position since the beginning of April 2011, is that the tenant, the association is not in occupation of the office premises.

Would it be correct to say that the tenant is entitled to ten year’s rent in terms of the Rent Act having given vacant possession. Members of the small association would like to offer their grateful thanks for your advice.

Office bearer - Nugegoda

Answer: When was your association evicted from the said premises, appear to be from April. If so within two months of eviction you have to file a case for restoration under Section 66 of the Criminal Procedure Code Law.

On the other hand it appears that your association is more keen on compensation than restoration.

As we do not know the conditions of tenancy and details of the premises we are unable to comment as to whether you are protected by the Rent Act. In any case even under the Rent Act there is now no provision for ten years rent as compensation.

However, legally you can claim restoration and damages which we think you should. Suggest you consult an Attorney-at-law for advice in your specific case.

New NIC with different number

Question: I am 60 years old. I retired from Public Service and am attached to the private sector holding a senior position. I lost my NIC and got a new one. The ID number is different to the previous one.

When inquired from NIC office, they issued me a letter saying the previous number is a forged (vyaja) number, not to use it and use the new number. I have been using this number since 1972 when the NIC system started and up to date. I renewed the card about 14 years ago and got the card with the same number. This time the number is different.

I have two questions.

* Who is responsible in issuing the forged NIC twice with the signature of Commissioner of Registrar of Persons.

* I am about to submit my application for withdrawal of the EPF and ETF which are with the previous number. How can I change them into the new number legally in EPF, and ETF, Passport, Driving Licence, Bank, Deeds, agreements etc?

I am confused how to change all. Please advice.

S Dissanayake, Kurunegala.

Answer: Your case is very rare but possible according to the Registration of Persons Department.

The numbering of all NIC’s begin with the last two digits of one’s year of birth followed by the number of days of the months and the date of one’s birth. The next three digits are the registration number and the last digit is supposed to be a secret number which may not have any logic.

We wish you had indicated the two numbers in your letter to us. If the mistake has been with the first five digits they have to correct it. They are not able to issue the same old number if there was an error.

They are willing to issue letters for EPF, ETF, Bank and other purposes such as Passport, Driving Licence, Deeds etc.

They will provide a letter stating the old and the new NIC number against your name and other details, even stating that it is their mistake.

The Sinhala word in their letter means ‘false’ not ‘forged’. Yours is an unfortunate case and you have no alternative but to live with it though it is a fault of the Department of Registration of Persons.

You may contact the Assistant Commissioner Legal, of the Department of Registration of Persons on Tel 2583122 Ext 210 for any assistance.