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srilawsby aturio
As enacted
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Part V · Winding Up of Licensed Bank

76. Termination of existing contracts

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

Within a period of six months from the date of the winding up order, the liquidator may, with the approval of the court and subject to the issuance of a ninety days’ prior written notice, and the provisions of any other law for the time being in force, terminate -

(a)

any contract of employment entered into with the licensed bank;

(b)

any contract for services to which the licensed bank is a party; or

(c)

any obligations of the licensed bank including, but without limiting to, its obligations, if any-

(i)

under any credit facility provided by the licensed bank;

(ii)

as a lessee;

(iii)

to deliver or to take delivery of securities, payment instruments or foreign currency;

(iv)

under letters of credit; or

(v)

under guarantees, options and other contingent liabilities.

(2)

A lessor who has received a ninety days’ prior notice of the termination of a lease under paragraph (c) of subsection (1), shall have no claim for rent other than the rent accrued on the date of termination of the lease, nor for damages by reason of such termination.

(3)

Any person aggrieved by the decision of the court to grant approval under subsection (1) may appeal to the

Supreme Court against such decision, within forty-five days from the date of the notice issued under that subsection and the provisions of the High Court of the Provinces (Special

Provisions) Act, No.10 of 1996 shall, mutatis mutandis, apply to and in respect of such appeal.

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