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srilawsby aturio
As enacted
Contents

Part XIII

397. Liability of receiver on other agreements and for rent

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

(1)

A receiver is liable on an agreement entered into by the receiver in the exercise and performance of any of the receiver’s powers and functions.

(2)

Subsection (1) shall have effect, notwithstanding any agreement to the contrary, but without prejudice to the receiver’s rights against the company or any other person.

(3)

Subject to subsections (4) and (5), a receiver is liable for rent and any other payments becoming due under an agreement subsisting at the date of the receiver’s appointment relating to the use, occupation or possession by the grantor of property in receivership.

(4)

The liability of a receiver under subsection (3) is limited to that portion of the rent or other payments that is attributable to the period commencing ten working days after the appointment of the receiver, and ending on the earliest of –

(a)

the end of the receivership;

(b)

the day on which the receiver ceases to be a receiver; and

(c)

the day on which the grantor ceases to use, occupy or possess the property.

(5)

On the application of the receiver, the court may –

(a)

limit the liability of the receiver to a greater extent than that specified in subsection (4); or

(b)

exempt the receiver from liability under subsection (3) altogether.

Rescue, Rehabilitation and Insolvency

(6)

Nothing in subsection (3) or subsection (4) shall –

(a)

be taken as giving rise to an adoption by a receiver of an agreement referred to in subsection (3); or

(b)

render a receiver liable in respect of the non-performance of any other obligation under such an agreement.

Read on from s 398

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