52.
| (1) Whenever default is made in the payment of any sum due on a loan, whether on account of principal or of interest or of both, default shall be deemed to have been made in respect of the whole of the unpaid portion of the loan and the interest due thereon up to date; and the Bank may, by resolution of the Board published in the Gazette, authorize any person in writing to sell the property mortgaged as security for such payment by public auction at any time not less than twenty-one days after the date on which such resolution was published, in order to recover the whole of the unpaid portion of the loan and the interest due thereon up to the date of sale and the moneys and costs recoverable under section 53. |
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| (2)
| | (a) Save as otherwise provided in paragraph (b), the provisions of sub-section (1) shall apply in the case of any default notwithstanding that the borrower may have died or that any right, title or interest whatsoever in the property mortgaged to the Bank as security for the loan may have passed by voluntary conveyance or by operation of law to any other person. | | |
| | (b) Where a borrower is dead and probate of his will or letters of administration to his estate have not been issued to any person, the District Court of Colombo or the District Court of the district in which the property mortgaged to the Bank by that borrower is situate, may, upon application made in that behalf by the Bank and after service of notice of the application on such persons, If any, as the court may order and if satisfied that the grant of probate or the issue of letters of administration is likely to be unduly delayed, appoint a person to represent the estate of the borrower for the purposes of this section; and the provisions of sub-section (1) shall not apply In the case of any default made by such borrower unless and until a person Is appointed under this paragraph to represent the estate of such borrower. | | |
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| (3)
| | (a) Notice of every resolution under sub-section (1) authorizing the sale of any property shall be published, in addition to the Gazette, in three daily newspapers in Sinhala, Tamil and English respectively, and copies of such notice shall be despatched to the borrower, if he is alive, and to every person who has, in respect of that property, registered his address under the provisions of paragraphs (b) and (c) of sub- section (1) of section 48, and, if that property consists of the interest of a lessee under a lease from the Crown, to the Land Commissioner. | | |
| | (b) Notice of the date, time and place of every sale shall, not less than fourteen days before the date fixed for the sale, be published in the Gazette and copies of such notice shall be-
| | | (i) despatched to the borrower if he is alive, and to every other person to whom notice of any resolution is required to be despatched under paragraph (a); |
| (ii) posted on or near the property which is to be sold; and |
| (iii) affixed to the walls of the Kachcheri and the several District Courts and Magistrates' Courts within the jurisdiction of which the property is situate. |
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| (4)
| | (a) If the amount of the whole of the unpaid portion of the loan together with interest, including any penal interest due thereon and of the moneys and costs, if any, recoverable by the Bank under section 53, is tendered to the Bank at any time before the date fixed for the sale, the property shall not be sold, and no further steps shall be taken in pursuance of the resolution under sub-section (1) for the sale of that property. | | |
| | (b) If the amount of the instalment or equated payment in respect of which default has been made, together with any penal interest due thereon, and of the moneys and costs, If any, recoverable by the Bank under section 53, Is tendered to the Bank at any time before the date fixed for the sale, the Board may, in its discretion, direct that the property shall not be sold, and that no further steps shall be taken In pursuance of the resolution under sub-section (1) for the sale of that property. | | |
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| (5) The Board may fix an upset price below which the property shall not be sold to any person other than the Bank. In fixing such price the Bank shall have particular regard both to the outstanding amount of the loan granted on the security of such property and the current value of such property. |
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| (6) In any case where two or more loans have been granted by the Bank on the security of the same property and default is made in the payment of any sum due upon one or more of such loans, the provisions of this section shall apply notwithstanding that default may not have been made in respect of the other loan or of any of the other loans, and the Bank may, in any such case, by resolution of the Board under sub-section (1) authorize the sale of the property for the recovery of the total amount due to the Bank in respect of both or all the loans, as the case may be, and the provisions of this Act shall apply accordingly. |
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Sri Lanka Consolidated Acts