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Contents

Part VI

124. Second Bankruptcy

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

(1)

Where, before discharge, a Bankruptcy Order is made in respect of the bankrupt debtor for a second time –

(a)

subject to subsection (2), any property that is acquired by, or has passed to, the bankrupt debtor since the first Bankruptcy, including property acquired or that has passed since the second

Bankruptcy, shall be vested in the Bankruptcy

Trustee in the second Bankruptcy; and

(b)

any surplus in the second Bankruptcy is an asset in the estate in the first Bankruptcy, and shall be paid to the Bankruptcy Trustee in the first

Bankruptcy.

(2)

The court may, if it considers it appropriate, order that the following assets or their proceeds shall vest in the

Bankruptcy Trustee in the first Bankruptcy –

(a)

assets in the second Bankruptcy that, in the court’s opinion, were acquired independently of the creditor in the second Bankruptcy; and

Rescue, Rehabilitation and Insolvency

(b)

assets in the second Bankruptcy that devolved upon the bankrupt debtor.

(3)

Where the Bankruptcy Trustee receives written notice that a creditor has filed a petition for a second Bankruptcy, he shall –

(a)

hold property in possession that has been acquired by, or passed to, the bankrupt debtor since the first Bankruptcy until the application for a second Bankruptcy has been dealt with; and

(b)

transfer the property and its proceeds, less any deduction for the Bankruptcy Trustee’s fees, costs, charges and expenses, to the Bankruptcy

Trustee in the second Bankruptcy where the creditor’s petition results in a second Bankruptcy, or if a Bankruptcy Order is made in respect of the debtor on his own application.

Part VII

Personal Insolvency Register

Part VIII

Part IX

Part X

Compromises

Part XI

Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

Part XII

Part XIII

Part XIV

Cross - Border Insolvency

Part XV

Part XVI

Part XVII

Schedules