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srilawsby aturio
As enacted
Contents

Part XIII

373. Court may appoint a receiver

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

(1)

Without prejudice to any other power the court may exercise under any other enactment, the court may appoint a receiver of any property that is subject to a fixed security or floating charge granted by a company, on the application of the grantee of the fixed security or floating charge, as the case may be, where the court is satisfied that –

(a)

the company has failed to pay a debt owing to the grantee or has otherwise failed to meet any obligation owing to the grantee;

(b)

the company proposes to sell or otherwise dispose of the secured property in contravention

Rescue, Rehabilitation and Insolvency of the terms of any instrument creating the fixed security or floating charge, as the case may be; or

(c)

it is necessary to do so to ensure the preservation of the secured property for the benefit of the grantee.

(2)

A receiver appointed by an order made under subsection (1) shall be an officer of the court.

(3)

A receiver may be appointed under subsection (1) –

(a)

notwithstanding anything to the contrary in any other written law; and

(b)

whether or not the property in receivership includes immovable property.

(4)

For the avoidance of doubt –

(a)

the appointment of a receiver under this section is not a hypothecary action; and

(b)

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.

Read on from s 374

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