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As enacted
Contents

Part VIII

168. Personal Insolvency Precedures: Disposal of Property

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

(1)

A debtor to whom this section applies commits an offence where the debtor does an act referred to in subsection (2) for the purpose of—

(a)

obtaining a Debt Protection Moratorium Order;

(b)

avoiding an obligation under sections 32 and 42;

(c)

obtaining a Debt Restructuring Arrangement;

Rescue, Rehabilitation and Insolvency

(d)

avoiding an obligation under sections 32 and 56;

(e)

avoiding the termination of a Debt Restructuring

Arrangement;

(f)

obtaining a Debt Rehabilitation Order;

(g)

avoiding an obligation under sections 32 and 71;

(h)

avoiding the termination or conversion of a Debt

Rehabilitation Order; or

(i)

avoiding any other obligation under this Act.

(2)

Subject to subsection (3), a debtor commits an act referred to in this subsection where the debtor, other than in the normal course of business carried on by the debtor or in the normal family affairs of the debtor—

(a)

makes or causes to be made a gift of any of the debtor’s property to another person;

(b)

otherwise makes or causes to be made any transfer of any of the debtor’s property, on terms that provide for the debtor to receive no consideration, from another person; or

(c)

enters into a transaction with another person involving the transfer of any of the debtor’s property to that other person or to a third person, whether or not the third person is a party to the transaction, where the value of the property concerned, in money or money’s worth, is significantly greater than the value, in money or money’s worth, of the consideration provided by the other person.

(3)

Subsection (2) does not apply to property of a value of less than Fifty Thousand Rupees or such other sum as may be prescribed.

Rescue, Rehabilitation and Insolvency

(4)

This section applies to a debtor —

(a)

who has made an application or proposal under sections 38, 50 or 67;

(b)

in respect of whom a Debt Protection Moratorium

Order, Debt Rehabilitation Order, or order confirming the coming into effect of a Debt

Restructuring Arrangement, has been made.

Read on from s 169

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