Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XV
426. Proofs of debt and proving debts
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, “debt” means –
any debt to which the debtor is subject at the relevant date;
any debt to which the debtor may become subject after the relevant date by reason of an obligation incurred before that date; and
any interest provable in accordance with subsection (8).
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A creditor wishing to vote or claim a distribution in respect of a debt, or for such other purposes as may be prescribed, shall submit a proof of debt unless –
this Act or any regulation made thereunder provides otherwise, or a court orders otherwise;
or
section 302 applies to the company, in which case the creditor is not required to submit a proof unless the liquidator requires one to be submitted.
A proof of debt –
is to be invited in such manner and at such times or on such occasions;
is, in such circumstances to be deemed to have been submitted;
is to be submitted in such manner and within such period; and
shall comply with such other requirements, including as to its content, as may be prescribed by rules.
Proofs of debt may be admitted or rejected, in whole or in part, in such manner, within such period and with such requirements for notice of admission or rejection as may be prescribed.
A debt is proved when a decision is made to admit a proof of debt under subsection (4) with respect to it.
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Where –
a proof of debt relates to debt –
that bears interest;
to which a trade discount or other discount relates;
that is incurred or payable in a foreign currency;
that is payable at a future time;
that relates to rent or other payments of a periodical nature;
a proof of debt relates to the debtor’s liability to calls as a contributory of a company;
a proof of debt is deemed under paragraph (b) of subsection (3) to have been submitted;
a proof of debt is subject to a contingency, or is for damages; or
for some other reason the amount of a proof of debt is uncertain, the amount of the proof of debt that may be admitted shall be determined in such manner as may be prescribed by rules.
In a liquidation –
the grantee of a fixed security shall have the options referred to in paragraph 1 of the Eighth
Schedule with respect to that security; and
the exercise of those options shall be governed by the provisions of that Schedule.
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Interest up to but excluding the relevant date on debts referred to in paragraphs (a) and (b) of subsection (1) shall be provable, and shall be calculated in such manner as may be prescribed.
Where an interested person is dissatisfied with a decision to admit or reject a proof of debt, in whole or in part, that person may appeal against the decision in such manner, within such period and with such requirements for notice of intention to appeal as may be prescribed.
A proof of debt may be withdrawn or varied, subject to such conditions and in such manner as may be prescribed.
A creditor shall be required to produce documents supporting a proof of debt, subject to such conditions and in such manner as may be prescribed.
Inspection of proofs of debt shall be allowed, by such persons, in such manner and at such times and places as may be prescribed.
Unless the court orders otherwise, a creditor shall bear the costs of proving its debt.
Any person who –
makes, or authorises the making of, a proof of debt that is false or misleading in a material particular, knowing it to be false or misleading;
or
omits, or authorises an omission from, a proof of debt any fact or matter, knowing that the omission makes the proof of debt false or misleading in a material particular, commits an offence.
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B - SET-OFF