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srilawsby aturio
As enacted
Contents

Part IX

196. No enforcement of encumbrance during administration

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

(1)

Subject to sections 202 and 203, during the administration of a company, no person shall enforce –

(a)

an encumbrance over property of the company;

or

(b)

an encumbrance over property of a third party granted in respect of a debt, liability or other obligation of the company, except with –

(c)

the prior, written consent of the administrator; or

Rescue, Rehabilitation and Insolvency

(d)

the permission of the court on such terms and conditions as necessary.

(2)

The administrator may give consent under paragraph (c) of subsection (1) where it is satisfied that the enforcement of the encumbrance does not harm the interests of the creditors as a whole.

(3)

The administrator shall not liable in damages for declining to give consent under paragraph (c) of subsection (1).

(4)

The court may give permission under paragraph (d) of subsection (1) where it is satisfied that substantial injustice would otherwise result.

Read on from s 197

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