Finance Business Act 2011 · As enacted · Part V · Regulatory and Resolution Actions on Finance Companies
32. Winding up
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
Where an order has been made by the Board under paragraph (b) of subsection (5) of section 31, the
Director shall make an application as hereinafter provided to a competent court for the winding up of the finance company.
The Court may, on an application made by the
Director, order the winding up of the finance company and accordingly the provisions of the Companies Act, No. 07 of 2007, relating to the winding up of companies subject to the supervision of court shall, mutatis mutandis, apply to the winding up of such company.
If the court is of opinion, after such inquiry as it may consider necessary, and after considering the submissions of the Director, that the finance company is not insolvent, it may make order permitting the finance company to resume business, either unconditionally or subject to such conditions as the Court may consider necessary in the public interest or in the interest of the depositors and other creditors of the company:
Provided, that the provisions of this subsection shall not apply to a finance company which has made an application to the Supreme Court in relation to an order made or purported to have been made by the Board in terms of subsection (5) of section 31 of this Act.
The Director or any person authorized on that behalf by the Board shall be appointed to be the liquidator for the purposes of such winding up.
Any costs, charges and expenses incurred in the winding up of a finance company may be paid out of the funds of the Central Bank where the Board considers it in the public interest to do so, in the event such costs, charges and expenses cannot be met out of the funds of such finance company.
Every order made by a competent court under this section shall be subject to an appeal to the Supreme Court and the provisions of the Civil Procedure Code (Chapter
101) relating to appeals in civil actions shall apply, mutatis mutandis, in the case of any such appeal.
Where the Director makes an application to Court for winding up of the finance company under subsection (1) for the continuity of legal proceedings it is deemed that the original caption of the plaint shall be valid for all purposes of law even if the Director who made the application to court is no longer the head of the department of the Central
Bank to which the subject of finance companies has been assigned.
In this section ‘competent court’ in relation to any finance company means a High Court established under
Article 154P of the Constitution for a Province, empowered with civil jurisdiction by Order published in the Gazette under section 2 of the High Court of the Provinces (Special
Provisions) Act, No. 10 of 1996, within the Province for which such High Court is established, or where no such High
Court vested with such civil jurisdiction is established for any Province, the High Court established for the Western
Province.
Part VI
Insurance of Deposits
Part VII
Action Against Persons Carrying on Finance Business or Accepting Deposits Without Authority
Part VIII
Offences and Penalties
Part IX