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As enacted
Contents

Part IX · Compromises with Creditors

252. Powers of court

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

(1)

On the application of the proponent or the company, the court may—

(a)

give directions in relation to a procedural requirement imposed under provisions of this Part or waive or vary any such requirement, if the court is satisfied that it would be just to do so; or

(b)

order that during a period specified in the order, beginning not earlier than the date on which notice was given of the proposed compromise and ending not later than ten working days after the date on which notice was given of the result of the voting on it—

(i)

proceedings in relation to a debt owning by the company be stayed; or

(ii)

a creditor should refrain from taking any other measure to enforce payment of a debt owing by the company.

(2)

Nothing in paragraph (b) of subsection (1) shall affect the right of a secured creditor during that period to seize, realise, appoint a receiver in respect of or otherwise deal with property of the company, over which that creditor has a charge.

(3)

Where the court is satisfied on the application of a creditor of a company who was entitled to vote on a compromise, that —

(a)

insufficient notice of the meeting or of the matters required to be notified under section 249 was given to that creditor;

(b)

there was some other material irregularity in obtaining approval of the compromise; or

(c)

in the case of a creditor who voted against the compromise, the compromise is unfairly prejudicial to that creditor or to the class of creditors to which that creditor belongs, the court may make an order that such creditor is not bound by the compromise, or make such other order as it thinks fit.

(4)

An application under subsection (3) shall be made not later than ten working days after the date on which notice of the result of the voting was given to the creditor.

Part X

Approval of Arrangements, Amalgamations, and Compromises by Court

Part XI

Provisions Relating to Offshore Companies

Part XII

Winding Up

Part XIII

Administrators Appointment of Administrator

Part XIV

Floating Charges

Part XV

Receivers and Managers

Part XVI

Registrar-General of Companies and Registration Appointment of Officers

Part XVII

Application of Act to Existing Companies

Part XVIII

Overseas Companies

Part XIX

Advisory Commission

Part XX

Companies Disputes Board

Part XXI

Offences Miscellaneous Offences

Part XXII

Miscellaneous Prohibition of Partnership with More Than Twenty Members

Part XXIII

Repeals and Amendments

Schedules