Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part I
24. Disciplinary action
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
In this section, “disciplinary action” means –
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;
the making of an application to the court for –
the removal from office of an Insolvency
Practitioner;
a prohibition order under section 27.
Rescue, Rehabilitation and Insolvency
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 –
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;
is contravening or has contravened a requirement under –
this Act, any regulation, rules, standards, codes of conduct, guidelines or practice directions made thereunder;
any other written law; or
any order or direction of the court;
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;
has been issued with an order of the court under section 265, section 364 or section 406;
is the subject of a prohibition order made under section 27;
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
is failing or has failed in a material respect to comply with a direction of the Authority, the
Authority may –
Rescue, Rehabilitation and Insolvency
undertake an inquiry under section 23; and
take such disciplinary action as may be necessary.
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.
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.
Under subsection (2), the Authority may take one or more types of disciplinary action in relation to a single matter.
With respect to the taking of disciplinary action under subsection (2), the Authority shall follow such procedure as may be prescribed, including as to –
giving the Insolvency Practitioner a prior opportunity to be heard on the matter; and
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