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Contents

Part I

24. Disciplinary action

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

(1)

In this section, “disciplinary action” means –

(a)

the imposition, subject to such conditions, including as to the making of an application to the court, as may be prescribed, of disciplinary sanctions on such grounds and of such nature as may be prescribed;

(b)

the making of an application to the court for –

(i)

the removal from office of an Insolvency

Practitioner;

(ii)

a prohibition order under section 27.

Rescue, Rehabilitation and Insolvency

(2)

Subject to subsection (3), where the Authority concludes, or determines that there are reasonable grounds to conclude, that an Insolvency Practitioner or former

Insolvency Practitioner –

(a)

while registered as an Insolvency Practitioner, does not meet, does not continue to meet or has not continued to meet or has not met a condition imposed on the person’s registration as an

Insolvency Practitioner under section 15;

(b)

is contravening or has contravened a requirement under –

(i)

this Act, any regulation, rules, standards, codes of conduct, guidelines or practice directions made thereunder;

(ii)

any other written law; or

(iii)

any order or direction of the court;

(c)

has been issued with an order of the court under paragraph (a) of subsection (2) of section 264, paragraph (a) of subsection (2) of section 363 or paragraph (a) of subsection (2) of section 405 to comply with a duty;

(d)

has been issued with an order of the court under section 265, section 364 or section 406;

(e)

is the subject of a prohibition order made under section 27;

(f)

is prohibited either under section 213 of the

Companies Act, or by an order made under section 214 of the Companies Act, from being appointed or acting as an office holder; or

(g)

is failing or has failed in a material respect to comply with a direction of the Authority, the

Authority may –

Rescue, Rehabilitation and Insolvency

(i)

undertake an inquiry under section 23; and

(ii)

take such disciplinary action as may be necessary.

(3)

With respect to a former Insolvency Practitioner, subsection (2) shall not apply to any matter that relates solely to a time more than six years before the Insolvency

Practitioner ceased to practise as an Insolvency Practitioner.

(4)

For the purposes of subsection (3), a person who performs the functions of an Insolvency Practitioner at any time, whether with or without being registered as such, shall be deemed to be practising as an Insolvency Practitioner at that time.

(5)

Under subsection (2), the Authority may take one or more types of disciplinary action in relation to a single matter.

(6)

With respect to the taking of disciplinary action under subsection (2), the Authority shall follow such procedure as may be prescribed, including as to –

(a)

giving the Insolvency Practitioner a prior opportunity to be heard on the matter; and

(b)

appeals.

Part II

Personal Insolvency: Principles

Part III

Debt Protection Moratorium Order

Part IV

Debt Restructuring Arrangements

Part V

Debt Rehabilitation Orders

Part VI

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