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Contents

Part XIII

390. First report by receiver

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

(1)

A receiver or a person who was a receiver at the end of the receivership, as the case may be, shall, within two months after the person’s appointment as receiver, prepare a report on the state of affairs with respect to the property in receivership, including –

Rescue, Rehabilitation and Insolvency

(a)

particulars of the property comprising the property in receivership;

(b)

particulars of the debts and other liabilities to be satisfied from the property in receivership;

(c)

the names and addresses of the creditors with an interest in the property in receivership;

(d)

particulars of any encumbrance over the property in receivership held by any creditor, including the date on which it was created;

(e)

particulars of any default by the grantor in making relevant information available; and

(f)

such other information as may be prescribed.

(2)

The report referred to in subsection (1) shall also include details of –

(a)

the events leading up to the appointment of the receiver, so far as the person is aware of them;

(b)

property disposed of and any proposals for the disposal of property in receivership;

(c)

amounts owing, as at the date of appointment, to any person in whose interests the receiver was appointed;

(d)

amounts owing, as at the date of appointment, to creditors of the grantor having preferential claims; and

(e)

amounts likely to be available for payment to creditors other than those referred to in paragraph (c) and paragraph (d).

Rescue, Rehabilitation and Insolvency

(3)

A receiver may omit from a report required to be prepared under subsection (1) details of any proposals for disposal of property in receivership if the receiver considers that their inclusion would materially adversely affect the performance of the receiver’s functions.

(4)

Every person who fails to comply with this section commits an offence.