AN ACT TO PROVIDE FOR THE PROCEDURE RELATING TO THE RECOVERY OF
POSSESSION OF PREMISES GIVEN ON LEASE UNDER A LEASE AGREEMENT
TO REGULATE THE RECOVERY OF ARREARS OF LEASE RENTALS, SERVICE
CHARGES AND LIQUIDATED DAMAGES; AND TO PROVIDE FOR MATTERS
CONNECTED THEREWITH OR INCIDENTAL THERETO.
BE it enacted by the Parliament of the Democratic Socialist Republic of Sri Lanka as follows:-
Short title
1. This Act may be cited as the Recovery of Possession of Premises Given on Lease Act, No. 1 of 2023.
PART I
INSTITUTION OF ACTION
Action by the lessor to recover possession of a premises given on lease
2
(1) Where any premises has been given on lease by a lessor, such lessor may, subject to the provisions of
subsection (2), institute action for the recovery of possession of such premises in the Court having jurisdiction over the local limits within which-
(a) the premises given on lease is situated;
(b) the lessee resides;
(c) the cause of action arises; or
(d) the lease agreement sought to be enforced was made.
(2) An action shall not be instituted by a lessor under the provisions of this Act for the recovery of possession of a
premises given on lease or for any relief specified in subsection (2) of section 5 unless possession of such premises has been given to the lessee by a lease agreement.
Grounds for institution of action
3. An action under this Act may be instituted by the lessor to recover the possession of the premises given on lease where the lessee refuses or fails or neglects to leave the premises -
(a) at the expiry of the period of the lease agreement; or
(b) upon the termination of the lease agreement prior to the expiry of the period of the lease agreement due to a breach by the lessee of any of the terms, conditions, covenants, obligations or duties set out in the said agreement, where the lessor has issued a notice of termination of the lease agreement.
Documents to be filed
4.
(1) The lessor (hereinafter referred to as the "plaintiff") shall institute an action by presenting a plaint in the form
specified in the Civil Procedure Code and shall file with such plaint-
(a) an affidavit to the effect that the possession of the
premises given on lease which is the subject matter of the action (hereinafter referred to as the
"premises") is lawfully due to the plaintiff from the lessee (hereinafter referred to as the "defendant");
(b) a draft decree nisi together with the applicable stamps as required by law, for the decree nisi and
service thereof; and
(c) such number of copies of the plaint, affidavit and
lease agreement, together with any document relied
on by the lessor, as is equal to the number of
defendants in the action, if there are more than one
defendant.
(2)
(a) The affidavit to be filed by the plaintiff under subsection (1) shall be made by the plaintiff himself or by a
person duly authorized by law to make such affidavit on behalf of the plaintiff.
(b) If the action is instituted by the plaintiff on the ground referred to in paragraph (b) of section 3, the plaintiff shall
plead such facts and prima facie establish the breach committed by the defendant and shall also adduce proof of the early termination.
(3) In any action instituted under subsection (1), the Court shall permit the plaintiff to support the same within seven
days from the institution of the action for issuance of a decree nisi.
Entering a decree nisi by the Court
5.
(1) When the action is supported in Court for the issuance of a decree nisi in terms of section 4, if it appears to
the Court that -
(a) the lease agreement produced -
(i) is properly executed and the stamp fees are duly paid as required by law; and
(ii) is not open to suspicion by reason of any
alteration, erasure or interpolation in the lease
agreement unless such alteration, erasure or
interpolation has been made before the signing
by the executing parties as stated in the
attestation by notary public, as the case may
be; and
(b) the contents of the affidavit filed is satisfactory to prove, prima facie, the case on the part of the plaintiff,
the Court shall enter a decree nisi in the form set out in the
First Schedule to recover the possession of the premises
described in the plaint, together with any of the reliefs
specified in subsection (2).
(2) The relief referred to in subsection (1) shall be as follows:-
(a) the arears of lease rentals;
(b) service charges, if any, until the plaintiff is restored to vacant possession of the premises;
(c) liquidated damages, if any, from the expiry of the lease agreement or effective date of the termination
of the lease agreement until the date of restoration of the plaintiff to the vacant possession of the premises;
(d) interest on arrears of lease rentals, service charges and liquidated damages at the rate of legal interest; or
(e) such costs as the Court may allow together with such other reliefs prayed for by the plaintiff as the Court may seem meet.
Liquidated damages
6.
(1) The Court, when determining the liquidated
damages to be awarded under subsection (2) of section 5,
shall not award any sum in excess of twice the lease rental
agreed to in the lease agreement, though any sum in excess
of such liquidated damages has been agreed to by the parties
in the lease agreement.
(2)Where the parties have not agreed upon the liquidated
damages payable in the lease agreement for the grounds of
action specified in section 3, the liquidated damages that
may be awarded shall be the sum of the lease rental agreed to
by the parties in the lease agreement.
Payment of service charge
7. A service charge shall not be ordered unless the defendant has agreed to pay such service charge in the lease
agreement, either directly to the plaintiff or to another person
on behalf of the plaintiff.
PART II
SERVICE OF DECREE NISI
Service of decree nisi ordinarily to be by registered post
8.
(1) A decree nisi shall be served on the defendant to
recover possession of the premises as asserted by the plaintiff
while giving the defendant a reasonable opportunity to make
an application to seek leave to appear and show cause, in
respect of his position.
(2) The decree nisi shall be ordinarily served on the
defendant by registered post at the premises or at the address
given by the defendant in the lease agreement for service of
notices, if any.
(3) The Registrar of the Court shall, within a period not
later than three days from the date of entering of the decree
nisi under section 5, initiate action to serve the decree nisi
on the defendant.
Service of decree nisi by a process officer
9.
(1) The Court may, on application being made in that
behalf immediately after the decree nisi is entered under
section 5, and at its discretion, order that in addition to
serving the decree nisi by registered post, the decree nisi
may also be served by tendering or delivering the same on
the defendant personally through a process officer.
(2) In the case where such decree nisi is ordered to be
served through a process officer under subsection (1), the
Registrar of the Court shall authorize the process officer to
serve the decree nisi on the defendant within ten days from
the receipt by such process officer of the decree nisi along
with the precept in the form specified in the Second Schedule.
(3) The decree nisi may be served in any part of Sri Lanka.
Where a decree nisi ordered to be served personally through
a process officer is required to be served outside the local
limits of the jurisdiction of the Court issuing the same, the
decree nisi shall be forwarded by such Court to the court within whose jurisdiction the defendant is believed to be
residing forthwith, and it shall be the duty of the lastmentioned
court to cause the decree nisi to be duly served on
the defendant in accordance with the provisions of this Act.
(4) Where a decree nisi is required to be served outside
the local limits of the jurisdiction of the Court issuing the
same, the Court may, at its discretion or on application made
by the plaintiff, for reasons to be recorded and upon such
terms as to costs, authorize the process officer of that Court
to serve the decree nisi outside the local limits of the
jurisdiction of that Court and to function as a special process
server.
(5) It shall be the duty of the process officer to endeavour
to obtain the signature or the thumb impression or both of
the defendant or any other person on his behalf, on the
original precept in acknowledgment of the service of the
decree nisi. The process officer shall return the precept to the
Court together with the report informing the Court the manner
of service of the decree nisi as set out in the form specified in
the Second Schedule referred to in subsection (2).
(6) If the service cannot be effected as referred to in
subsection (1) by the exercise of due diligence, the process
officer is authorized to affix the decree nisi in some
conspicuous part of the premises without any further
direction of the Court and report such service to the Court.
The decree nisi served in the aforesaid manner shall be deemed
to have been duly served on the defendant personally.
Service of
decree nisi
on a public
officer
10
(1) Where the defendant is a public officer, the Court
may, at its discretion, in addition to sending the decree nisi
to the defendant by registered post, also forward a copy of
the decree nisi in duplicate, by registered post to the Head of
Office in which the defendant is employed.
(2) In this section, "Head of Office"-
(a) when used with reference to a member of any Unit
of the Sri Lanka Army, Sri Lanka Navy or Sri Lanka
Air Force, means the Commanding Officer of that
Unit;
(b) when used with reference to a person employed in a
Provincial Council, means the Secretary of that
Provincial Council;
(c)...
