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Contents

Part XV

414. Alienation of property with intent to hinder, delay or defeat a creditor

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

(1)

Subject to subsections (2) and (3), every conveyance or transfer of property by a debtor in the extended review period, with intent to hinder, delay or defeat a creditor in the exercise of any right of recourse of the creditor in respect of the property, may be set aside by the court on the application of a relevant office holder.

(2)

A conveyance or transfer may not be set aside under subsection (1) where the property was conveyed or transferred to a person who acquired the property in good faith without knowledge of the intent referred to in subsection (1).

Rescue, Rehabilitation and Insolvency

(3)

Nothing in subsection (1) shall affect or limit any right of or remedy available to a secured creditor.

(4)

An alienation with intent is a conveyance or transfer that may be set aside under subsection (1).