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Contents

Part VI

152. Actions by Bankruptcy Trustee and bankrupt debtor’s partners

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

(1)

Where a Bankruptcy Order has been made in respect of a member of a partnership, the court may authorise the Bankruptcy Trustee to commence and prosecute any action in the names of the Bankruptcy Trustee and of the bankrupt debtor's partner.

(2)

Where the court has authorised the Bankruptcy Trustee to commence and prosecute an action under subsection (1), any release by such bankrupt debtor’s partner of the debt or demand to which the action relates shall be void.

(3)

Where a Bankruptcy Trustee makes an application to court for authority to commence and prosecute an action under subsection (1), the Bankruptcy Trustee shall provide written notice of such application to the bankrupt debtor’s partner.

(4)

Where a Bankruptcy Trustee makes an application to court for authority to commence and prosecute an action under subsection (1), the bankrupt debtor’s partner may contest the application on showing good cause.

(5)

Where a bankrupt debtor’s partner contests the application under subsection (4) —

(a)

the court may, as necessary, direct that such partner receive the proper share of the proceeds of the action; and

(b)

if such partner does not claim any benefit therefrom, such partner shall be indemnified against costs in respect thereof as the court directs.

Rescue, Rehabilitation and Insolvency

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