67. Application to court for a winding up order

Where the licence issued to a licensed bank is cancelled by the Central Bank under subsection (2) of section 66, the Head of the Department established under section 4

An application to the court under subsection (1) shall be by way of a petition made in accordance with the provisions of this Part of this Act. Such petition shall be supported by documentary evidence to prove the grounds for the winding up.

The court shall, after considering the application made under subsection (1), fix a date to support the winding up petition, which shall not exceed two months from the date of the winding up petition filed under subsection (2).

The Head of the Department established under section 4 shall publish in the Gazette, the date fixed to support the winding up petition under subsection (3), within a period of fourteen working days from the date called to fix the date to support, requiring creditors or any other interested party of the licensed bank subject to winding up, to notify him in such form and within such period as may be specified in that publication, whether they intervene into the winding up application filed under subsection (1), as parties (in this Act referred to as the "intervening parties"). The period of notification given to intervening parties shall not exceed fourteen days from the date of such Gazette. Details of the intervening parties notified under this section shall be submitted to the court on the date fixed to support the winding up petition.

No person specified in subsection (4) shall intervene in the winding up proceedings before the date on which such petition is supported.

The court may, after considering the application made under subsection (1), and submissions of the intervening parties, make an order (in this Act referred to as the "winding up order") to commence the winding up proceedings against such licensed bank.

The winding up order shall come into effect from the date specified in such order.

If the court is of the opinion, after considering the submissions of the Head of the Department established under section 4 and the intervening parties that the licensed bank is not insolvent, it may make order permitting the licensed bank to resume business, either unconditionally or subject to such conditions as the court may consider necessary in the public interest or in the interests of the depositors and other creditors of the licensed bank.

Upon coming into effect of the winding up order, the right of any depositor, creditor, or any contracting counterparty to access or execute their rights, titles and interests recorded in the books or records of the licensed bank shall be forthwith suspended.

For the purposes of this Part of this Act, the value of the assets and liabilities of a licensed bank which is subject to winding up shall be determined in accordance with the applicable Sri Lanka Accounting Standards.

Every order made by the court under this section shall be subject to an appeal to the Supreme Court and the provisions of the High Court of the Provinces (Special