Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XV
416. Court orders on setting aside a voidable preference, voidable encumbrance or alienation with intent
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
On the setting aside of a voidable transaction, the court may make one or more of the following orders : –
an order that a person transfers to –
the relevant office holder; or
if the liquidation of the debtor has commenced after the application to court was made, the liquidator, property or a property interest of the debtor that was transferred under the voidable transaction;
an order that a person pays to –
the relevant office holder; or
if the liquidation of the debtor has commenced after the application to court was made, the liquidator, an amount equal to some or all of the money that was paid under the voidable transaction;
an order that a person pays to –
the relevant office holder; or
if the liquidation of the debtor has commenced after the application to court was made, the liquidator,
Rescue, Rehabilitation and Insolvency an amount that, in the court’s opinion, fairly represents some or all of the benefits that the person received as a result of the voidable transaction;
an order that a person transfers property or a property interest that, in the court’s opinion, fairly represents either or both of the following (but without double-counting) –
some or all of the money that was paid under the voidable transaction; and
some or all of the proceeds of realisation of property or of a property interest of the debtor that was transferred under the voidable transaction;
an order releasing, in whole or in part, a debt that has been incurred or a guarantee or encumbrance that has been given;
an order requiring security to be given for the discharge of an order made under this subsection;
an order specifying the extent to which a person affected by the setting aside of a voidable transaction is entitled to be treated as a creditor in the bankruptcy, administration or liquidation; or
an order declaring an agreement that constitutes, forms part of or relates to the voidable transaction, or specified provisions of such an agreement, either –
to be void as from the time at which the agreement was made or such later time as may be specified in the order; or
to be unenforceable.
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In making an order under subsection (1) the court may, as may be necessary, make any other ancillary order.