Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XV
419. Misfeasance
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
Where, in the course of the administration, deed administration or liquidation of a company, the Authority or the court considers that an involved party has misapplied or retained or become liable or accountable for money or other property of the company, or has been guilty of negligence, default or breach of duty or trust in relation to the company, the court may on the application of a relevant office holder, a creditor, a contributory, the Official Receiver, the Authority, or another interested person –
inquire into the conduct of the involved party;
and
either –
order that person to repay or restore the money or other property or any part of it with interest at a rate the court thinks just;
order that person to contribute such sum as the court thinks just to the property of the company by way of compensation;
Rescue, Rehabilitation and Insolvency
where the application is made by a creditor, order that person to pay or transfer the money or other property or any part of it with interest at a rate the court thinks is just to the creditor or creditors; or
make such other order as necessary.
An order for payment of money under subsection (1)
shall be deemed to be a final judgment for the purposes of section 89.
An application under subsection (1) in relation to a person who has acted as administrator, deed administrator, liquidator or provisional liquidator of the company may not be made, except with the permission of the court, after that person has been released under section 258 or section 357.