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srilawsby aturio
As enacted
Contents

Part XIII

404. Court may restrict or limit receivership

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

(1)

The court may, subject to subsection (2), on the application of the grantor or a liquidator of the grantor –

(a)

order that a receiver shall cease to act as from a specified date and time, and prohibit the

Rescue, Rehabilitation and Insolvency appointment of any other receiver in respect of the property in receivership; or

(b)

order that a receiver shall, as from a specified date and time, act only in respect of a specified property forming part of the property in receivership.

(2)

An order under subsection (1) may be made where the court is satisfied that –

(a)

the purpose of the receivership has been satisfied so far as possible; or

(b)

circumstances no longer justify its continuation.

(3)

Unless the court orders otherwise, a copy of an application under this section shall be served on the receiver at least five working days before the hearing of the application, and the receiver may appear and be heard at the hearing.

(4)

In making an order under subsection (1), the court may, as may be necessary –

(a)

impose any term or condition; and

(b)

make any other ancillary order.

(5)

An order made under subsection (1) shall not affect an encumbrance over the property in receivership.

Read on from s 405

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