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Contents

Part VI

135. Duties of fi scal in Bankruptcy

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

(1)

This section applies to an execution process against property of a bankrupt debtor that was levied but not completed within the meaning of section 134 at least one hundred and eighty days before commencement of the

Bankruptcy.

(2)

Notwithstanding any other enactment, subject to subsection (3) and unless the court orders otherwise on the application of the execution creditor, a Fiscal shall, as soon as practicable and after the Bankruptcy commences –

(a)

deliver to the Bankruptcy Trustee any property of the bankrupt debtor that is in or comes into the Fiscal’s possession or custody or under the Fiscal’s control as a result of the execution process; and

(b)

cause the Bankruptcy Trustee to be paid –

(i)

any proceeds of realisation of property of the bankrupt debtor under the execution process;

(ii)

any money of the bankrupt debtor received or seized under the execution process; and

(iii)

any money paid to avoid seizure or sale of property of the bankrupt debtor under the execution process, where such proceeds or money are in or come into the

Fiscal’s possession or custody or under the Fiscal’s control, or are paid into court (and have not already been paid out).

(3)

The Fiscal may retain or cause to be retained –

(a)

from property delivered under paragraph (a) of subsection (1), property of a value that the Fiscal may reasonably determine to represent the costs

Rescue, Rehabilitation and Insolvency of the execution process or attachment, as the case may be, incurred by the Fiscal; or

(b)

from proceeds or money paid under paragraph (b) of subsection (1), the costs of the execution process or attachment, as the case may be, incurred by the Fiscal.

CHAPTER 9

Distribution of Property

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