439. Court may appoint a receiver

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

Without limiting the inherent jurisdiction of the court under any other written law, the court may appoint a receiver of any property which is subject to a fixed security or a floating charge granted by a company, on the application of the grantee of that security or charge, where it is satisfied that—

(a)

the company has failed to pay a debt due to the grantee or has otherwise failed to meet any obligation to the grantee;

(b)

the company proposes to sell or otherwise dispose of the secured property in breach of the terms of any instrument creating the security or charge; or

(c)

it is necessary to do so to ensure the preservation of the secured property for the benefit of the grantee.

(2)

A receiver may be appointed under this section—

(a)

notwithstanding anything to the contrary in any other law; and

(b)

whether or not the property in respect of which the receiver is appointed, includes immovable property.

(3)

For the avoidance of doubt—

(a)

the appointment of a receiver under this section is not a hypothecary action; and