Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part XVI
432. Application of unclaimed and surplus proceeds
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 –
“entitled person”, with respect to a distribution of proceeds of realisation of property, means a person entitled to those proceeds; and
“established claim”
means a claim established to the reasonable satisfaction of the Official Receiver.
Where a distribution of proceeds of realisation of property is made in a bankruptcy, liquidation or receivership and any such proceeds remain unclaimed –
for more than twelve months from the date on which the distribution is made; or
if earlier, at the time at which an order of discharge is made under section 138 in respect of the bankruptcy, or the liquidation or receivership ends,
Rescue, Rehabilitation and Insolvency the Bankruptcy Trustee, liquidator or receiver, as the case may be, shall surrender those proceeds to the Official
Receiver.
A Bankruptcy Trustee, liquidator or receiver shall be entitled to a certificate issued by the Official Receiver in respect of a surrender under subsection (2), which shall be an effectual discharge to the Bankruptcy Trustee, liquidator or receiver.
The Official Receiver shall place all proceeds received under subsection (2) into the account of the Official Receiver called the “Insolvency Holding Account”, to be applied as soon as practicable in or towards the satisfaction of any established claim of an entitled person.
At the expiry of twelve months from the date on which proceeds are received by the Official Receiver under subsection (2), the Official Receiver shall transfer the balance (after any application under subsection (4)) of such proceeds into the account of the Official Receiver called the
“Insolvency Surplus Account”.
If and to the extent that any amount is lying to the credit of the Insolvency Surplus Account, such amount shall –
where proceeds of realisation were transferred under subsection (5), be applied as soon as practicable in or towards satisfaction of any established claim of any entitled person;
be available to meet the costs of administration of personal insolvency proceedings in which the debtor’s estate is insufficient to cover such costs.
Any amount lying to the credit of the Insolvency
Surplus Account may, if prescribed, be invested in
Rescue, Rehabilitation and Insolvency compliance with such requirements as may be prescribed, and the income received on any such investments shall be paid promptly into the Insolvency Surplus Account.
Where any sum is paid from the Insolvency Holding
Account or Insolvency Surplus Account to an entitled person under subsection (4) or paragraph (a) of subsection (6), any other person who subsequently claims that sum shall not have any right of recourse to the Insolvency Holding
Account or Insolvency Surplus Account in respect of that sum.
The Official Receiver shall send reports on the
Insolvency Holding Account and Insolvency Surplus
Account to such persons, with such information, in such manner, and at such times or on such occasions as may be prescribed.