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srilawsby aturio
As enacted
Contents

Part XV

429. Distributions

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

(1)

In this section, “distributing office holder”

means –

(a)

in a bankruptcy, the Bankruptcy Trustee;

(b)

in a liquidation, the liquidator; and

(c)

in a receivership, the receiver.

(2)

Where a distributing office holder proposes to make a distribution, the distributing office holder –

(a)

shall give –

(i)

public notice; and

(ii)

notice to individual creditors,

Rescue, Rehabilitation and Insolvency of the proposed distribution in compliance with such requirements as may be prescribed;

(b)

may, in such circumstances as may be prescribed, postpone or cancel a proposed distribution of which notice has been given;

(c)

may make such provision as the distributing office holder sees fit for –

(i)

proofs of debt that have not been submitted or whose amounts have not been determined;

and

(ii)

expenses likely to be associated with the admission, or determination of the amounts of, such proofs of debt.

(3)

Where a creditor’s proof of debt is submitted or increased after the making of a distribution –

(a)

any distribution that has already been made shall not be disturbed on that ground;

(b)

if and to the extent that the proceeds of realisation of property are sufficient, any further distributions shall be made such that the proportion of the creditor’s debt satisfied in those distributions is equal to the proportion previously satisfied of the debts of all other creditors with equally ranked claims.

(4)

A distributing office holder shall not be liable in damages for failing to make a distribution, but where a distributing office holder refuses to make a distribution and on an application to the court by an interested person, the court may order that the distributing office holder shall –

(a)

make the distribution; and

Rescue, Rehabilitation and Insolvency

(b)

pay out of the distributing office holder’s own money –

(i)

interest on the amount or value of the distribution at such rate as may be prescribed; and

(ii)

the reasonable costs of the applicant incurred in making the application.

D - SENDING OF DOCUMENTS TO CREDITORS AND

OPTING OUT

Read on from s 430

Part XVI

Read on from Part XVI

Part XVII

Read on from Part XVII

Schedules