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Contents

Part IX

210. Essential services in administration

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

(1)

In this section, “insolvency-related term” is a provision of an agreement for the supply of an essential good or service to a company under which –

(a)

the agreement or the supply would terminate, or any other thing would take place, because the administration of the company commences; or

(b)

the supplier would be entitled to terminate the agreement or the supply, or to do any other thing, because the administration of the company commences.

Rescue, Rehabilitation and Insolvency

(2)

Notwithstanding any other enactment, a supplier of an essential good or service shall not –

(a)

refuse to supply the good or service to an administrator, or to a company in administration, by reason of the company’s default in paying charges due for the good or service in relation to a period before the commencement of the administration;

(b)

make it a condition of the supply of the good or service to an administrator, or to a company in administration, that payment be made of outstanding charges due for the good or service in relation to a period before the commencement of the administration; or

(c)

rely on an insolvency-related term of the agreement for the supply of the good or service, except with the prior, written consent of the administrator.

(3)

The administrator may give consent under paragraph (c) of subsection (2) where it is satisfied that the reliance on the insolvency-related term is in the interests of the creditors as a whole.

(4)

The administrator shall not be liable in damages for declining to give consent under paragraph (c) of subsection (2).

(5)

For the purposes of the Fourth Schedule the charges incurred by an administrator for the supply of an essential good or service are an expense of the administration.

Rescue, Rehabilitation and Insolvency

CHAPTER 5

Administration Routes

A - PROVISIONS APPLICABLE TO THE STANDARD

AND EXPEDITED ROUTES

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