Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XIII
372. Appointment of receiver under an instrument
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
Where an instrument confers on the grantee the power to appoint a receiver of property of a company, the grantee may appoint a receiver by an instrument in writing signed by or on behalf of the grantee.
A receiver appointed under an instrument shall be the agent of the grantor, unless the instrument expressly provides otherwise.
A receiver may be appointed under subsection (1) –
notwithstanding anything to the contrary in any other written law; and
whether or not the property in receivership includes immovable property.
Unless the instrument expressly provides otherwise, a power conferred by an instrument to appoint a receiver includes the power to appoint –
two or more receivers;
a receiver in addition to a receiver who already holds office;
a receiver to succeed a receiver whose office has become vacant.
Rescue, Rehabilitation and Insolvency
Where two or more persons are appointed as receivers under an instrument –
a receiver’s functions and powers may be performed or exercised by any one of them, or by any two or more of them together, except so far as the instrument provides otherwise;
any liability of the persons as receivers shall be joint and several; and
a reference in this Act to a receiver refers to whichever one or more of the receivers as the case requires.
For the avoidance of doubt –
the appointment of a receiver under this section is not a hypothecary action; and
nothing in section 46 of the Mortgage Act
(Chapter 89) shall affect or shall apply in relation to the appointment of a receiver under this section.
Part XIV