Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part IV · Debt Restructuring Arrangements
57. Challenge of Debt Restructuring Arrangement
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
A creditor who is bound by a Debt Restructuring
Arrangement may apply to the court to object to a court order confirming the coming into effect of the Arrangement.
A creditor’s application to object to a Debt
Restructuring Arrangement under subsection (1), shall be based on one or more of the following grounds, namely that-
the debtor does not meet the eligibility criteria in section 46;
Rescue, Rehabilitation and Insolvency
the Debt Restructuring Arrangement does not comply with the mandatory provisions specified in section 47;
the making and confirmation of the Debt
Restructuring Arrangement has not complied with the procedural requirements of this Part;
a debt to be covered by the Debt Restructuring
Arrangement is not an included debt for the purposes of section 37;
the debtor has made any material false representation or omission in making the statement of financial affairs, or on supplying any accompanying information; or
the Debt Restructuring Arrangement causes unfair prejudice to the interests of the creditor.
A creditor’s application to court to object to a Debt
Restructuring Arrangement must be made within the period of twenty eight days from the day on which the Debt
Restructuring Arrangement comes into effect.
A creditor must provide written notice to the debtor, and the personal insolvency administrator, of an application to object to a Debt Restructuring Arrangement, including the grounds on which the application is based.
Where on an application under this section, the court is satisfied as to any of the grounds specified in subsection (2), the court may do any of the following, namely-
make an order directing that the Debt
Restructuring Arrangement shall not apply in whole or in part to the creditor who made the application to court, where to do so would not unfairly prejudice any other creditor;
Rescue, Rehabilitation and Insolvency
direct the personal insolvency administrator to use the variation procedure under section 58, to seek a decision from creditors as to whether they approve a revised proposal; or
make an order cancelling the Debt Restructuring
Arrangement in respect of any other included debt or creditor.
Where a court has made an order under subsection (5), the court may require the debtor to pay any interest, fees or charges that accrued in respect of an included debt during the period in which the Debt Restructuring Arrangement was in effect.
Where a court has made an order under paragraph (c) of subsection (5), with the effect of cancelling the
Debt Restructuring Arrangement in respect of all included debts and all creditors, the court shall also make an order establishing a temporary Moratorium on creditor remedies, which shall endure for a period of twenty one days and shall have the same effect as a Debt Protection Moratorium under section 40.
In any case where a court makes an order under subsections (5) or (6), the court shall give written notice to —
the debtor;
the personal insolvency administrator;
the Official Receiver; and
any creditors to whom the order under subsection (5) or (6) applies.
Where a court gives notice to the Official Receiver under subsection (8), the Official Receiver shall, within a period of fourteen days—
Rescue, Rehabilitation and Insolvency
cause an entry to be made in the Personal
Insolvency Register, in such manner as may be prescribed; and
give written notice of the court order made under subsection (5), and any requirements made under subsection (6), to any affected creditor.
Part V
Debt Rehabilitation Orders
Part VI
Part VII
Personal Insolvency Register
Part VIII
Part IX
Part X
Compromises
Part XI
Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements
Part XII
Part XIII
Part XIV