Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XIII
405. Order to enforce receiver’s duties
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
In this section, “failure to comply”, with respect to a receiver, means a failure (by act or omission) by the receiver to comply with a duty arising –
under the instrument or the order of the court by or under which the receiver was appointed;
under this Act or any other written law; or
Rescue, Rehabilitation and Insolvency
under any order or direction of the court, except an order to comply made under this section, and “comply” shall have the corresponding meaning.
On the application of a person referred to in subsection (3), and where the court is satisfied that there is or has been a failure to comply, the court may –
without prejudice to any other right or remedy that may be available in relation to a breach of duty, order the receiver to comply with the applicable duty so far as may be specified in the order; or
relieve the receiver of the duty to comply with the applicable duty, wholly or in part.
Any of the following persons may make an application to the court under subsection (2) –
a receiver, in relation to a failure to comply by another receiver of property of the grantor;
the grantor;
a creditor of the grantor;
any other person with an interest in the property in receivership;
a liquidator or provisional liquidator of the grantor;
an administrator or deed administrator of the grantor;
the Registrar; or
the Authority.
Rescue, Rehabilitation and Insolvency
No application shall be made under subsection (2)
unless notice of the failure to comply has been served on the receiver at least ten working days before the application and, as at the date of the application, there is a continuing failure to comply.
A copy of every order made under paragraph (a) of subsection (2) shall, within five working days after the making of the order, be sent by the court to the Authority.
Part XIV