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srilawsby aturio
As enacted
Contents

Part XII

333. Power of liquidator to deal with property subject to an encumbrance

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

(1)

A liquidator may exercise or discharge a power or function in relation to property that is subject to an encumbrance where –

(a)

the encumbrance is a fixed security and the property is surrendered under subparagraph (b)

of paragraph 1 of the Eighth Schedule or taken to be surrendered under subparagraph (a) of paragraph 4 of that Schedule;

(b)

the encumbrance is a fixed security and paragraph (a) does not apply but the grantee of the

Rescue, Rehabilitation and Insolvency encumbrance has confirmed to the liquidator that it does not intend to enforce the encumbrance;

(c)

the encumbrance is a floating charge;

(d)

the encumbrance is a fixed security ranking behind a floating charge under subsection (2) of section 431 of the Companies Act; or

(e)

the encumbrance is a lien.

(2)

Where property is disposed of under subsection (1), the grantee of the encumbrance shall have the same priority in respect of any property of the company directly or indirectly representing the property disposed of as the grantee had in respect of the property subject to the encumbrance.

Read on from s 334

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