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As enacted
Contents

Part VI

118. Possesion of Property by Bankruptcy Trustee

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

(1)

The Bankruptcy Trustee shall, as soon as may be, take possession of books, documents and other records which relate to the property or affairs of the bankrupt debtor, which —

(a)

belong to the bankrupt debtor; or

(b)

are in the possession or under the control of the bankrupt debtor.

(2)

The Bankruptcy Trustee shall, in relation to and for the purpose of acquiring or retaining possession of the Bankruptcy Estate, be in the same position as if the

Bankruptcy Trustee were a receiver of the property appointed by the court, and the court may, on an application, enforce such acquisition or retention accordingly.

(3)

Where any part of the Bankruptcy Estate consists of stock or shares in a company, shares in a ship or any other property transferable in the books of any company, office, or person, the Bankruptcy Trustee may exercise the right to transfer the property to the same extent as the bankrupt debtor might have exercised if such bankrupt debtor had not become bankrupt.

(4)

Where any part of the Bankruptcy Estate consists of things in action —

(a)

such things shall be deemed to have been duly assigned to the Bankruptcy Trustee; and

(b)

notice of the deemed assignment need not be given except in so far as it is necessary, in case where the deemed assignment is from the bankrupt debtor, for protecting the priority of the

Bankruptcy Trustee.

Rescue, Rehabilitation and Insolvency

(5)

In addition to the general duties of the bankrupt debtor under section 112 the bankrupt debtor shall deliver up to the Bankruptcy Trustee possession of any property, books, papers or other records of which the bankrupt debtor has possession or control and of which the Bankruptcy Trustee is required to take possession.

(6)

Any person, being a banker or agent of the bankrupt debtor or any other person who holds any property to the account of, or for, the bankrupt debtor, shall pay or deliver to the Trustee -

(a)

all property in such person's possession or under his or her control which forms part of the

Bankruptcy Estate; and

(b)

which such person is not by law entitled to retain as against the bankrupt debtor or Bankruptcy

Trustee.

(7)

If any of the following is in possession of any property, books, papers or other records of which the Bankruptcy

Trustee is required to take possession, namely—

(a)

the Official Receiver;

(b)

a person who has ceased to be Trustee of the

Bankruptcy Estate; or

(c)

a person who has been the personal insolvency administrator of a

Debt

Restructuring

Arrangement approved in relation to the bankrupt debtor under Part IV, that person shall deliver up possession of the property, books, papers or records to the Bankruptcy Trustee.

(8)

If any person without reasonable excuse fails to comply with any obligation imposed by this section, such

Rescue, Rehabilitation and Insolvency person is guilty of a contempt of court and liable to be punished accordingly, in addition to any other punishment to which such person may be subject.

Read on from s 119

Part VII

Personal Insolvency Register

Read on from Part VII

Part VIII

Read on from Part VIII

Part IX

Read on from Part IX

Part X

Compromises

Read on from Part X

Part XI

Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

Read on from Part XI

Part XII

Read on from Part XII

Part XIII

Read on from Part XIII

Part XIV

Cross - Border Insolvency

Read on from Part XIV

Part XV

Read on from Part XV

Part XVI

Read on from Part XVI

Part XVII

Read on from Part XVII

Schedules