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srilawsby aturio
As enacted
Contents

Part XV

409. Inability to pay debts

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

(1)

An individual is insolvent where such individual is unable to pay such individual’s debts as they become due.

(2)

A company is insolvent where it is unable to pay its debts as they become due in the normal course of business.

(3)

Insolvency within the meaning of subsection (1) or subsection (2) may be proved by any evidence.

(4)

For the purposes of this Act, a company shall be presumed, unless the contrary is proved, to be insolvent within the meaning of subsection (2) where –

(a)

a creditor by assignment or otherwise, to whom the company is indebted in a sum than due or exceeding such amount as may be prescribed, has served on the company a statutory demand requiring the company to pay the sum so due or secure or compound for it, and the company has for twenty one days from the date of service failed without reasonable cause to comply with the demand by paying the sum or securing or compounding for it to the reasonable satisfaction of the creditor;

(b)

execution or other process levied on a judgment, decree or order of any court in favour of a creditor of the company is returned unsatisfied in whole or in part.

Rescue, Rehabilitation and Insolvency

Read on from s 410

Part XVI

Read on from Part XVI

Part XVII

Read on from Part XVII

Schedules