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srilawsby aturio
As enacted
Contents

Part VI

130. Protection of good faith transactions without notice

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

(1)

This section is subject to the provisions of this

Act with respect to the effect of Bankruptcy on an execution or attachment under section 134, and with respect to the provisions on preferences and undervalued transactions under sections 412, 413, 414 and 418.

(2)

A transaction between the bankrupt debtor and any other person under which, after commencement of the

Bankruptcy, the bankrupt debtor acquires property, or property passes to the bankrupt debtor shall be valid against the Bankruptcy Trustee where –

(a)

the other person deals with the bankrupt debtor in good faith and for value; and

(b)

the transaction is completed without an intervention by the Bankruptcy Trustee.

Rescue, Rehabilitation and Insolvency

(3)

Where the other person is the bankrupt debtor’s bank, a transaction dealing with the bankrupt debtor for value includes –

(a)

the receipt by the bank of any money, security, or negotiable instrument from the bankrupt debtor or by the bankrupt debtor’s order or direction;

(b)

a payment by the bank to the bankrupt debtor or by the debtor’s order or direction; and

(c)

the delivery by the bank of a security or negotiable instrument to the bankrupt debtor or by the bankrupt debtor’s order or direction.

(4)

A payment of money or delivery of property by a legal personal representative to, or direction of, the bankrupt debtor is a transaction for value.

Read on from s 131

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