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Part V · Debt Rehabilitation Orders

75. Creditor objection to Debt Rehabilitation Order

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

(1)

A creditor to whom an included debt is owed may apply to the court to object to —

(a)

the making of the Debt Rehabilitation Order; or

Rescue, Rehabilitation and Insolvency

(b)

the inclusion under the Debt Rehabilitation Order of the creditor’s debt.

(2)

An objection under subsection (1) shall -

(a)

be made not later than twenty one days from the date on which the Official Receiver informed creditors of their right to object to the order under subsection (6) of section 70;

(b)

be made by the lodging by the creditor of a written notice of objection with the court, and of a written notice to the debtor and the Official

Receiver; and

(c)

be based on grounds referred to in subsection (3).

(3)

The grounds for objection to an order shall be limited to the following:-

(a)

the debtor did not satisfy the eligibility criteria under section 66 at the time of the making of a

Debt Rehabilitation Order application; or

(b)

there is a material inaccuracy in the Debt

Rehabilitation Order application, or in any material provided by the debtor in support of the application, which has caused a material detriment to the applicant.

(4)

On receiving an application to object to the order, the court shall fix a date for a hearing of this application, to take place within ninety days after the receipt of the application.

(5)

The court shall provide written notice to the debtor, creditors and the Official Receiver of the hearing of the application to object to the order, in such manner as may be prescribed.

Rescue, Rehabilitation and Insolvency

(6)

On receiving an application to object to the order, the court may require the Official Receiver-

(a)

to provide information to the court which may assist the court in making a determination; or

(b)

to conduct an investigation into any matter that appears to the court to be relevant to the making of a determination.

(7)

On receiving an application to object to the order, the court may extend the duration of the order for the purposes of properly considering the matter, provided that-

(a)

such extension shall not exceed a period of ninety days beyond the initial duration of the order; and

(b)

the court has due regard to -

(i)

any unfairness to the debtor which might result from the extension of the order period;

and

(ii)

the extent to which an extension will further the goals of the Debt Rehabilitation Order procedure, including those specified in section 65.

(8)

On the hearing of an application to object to the order, if the court finds that the grounds referred to in subsection (3) have not been established, the court shall-

(a)

dismiss the objection; and

(b)

require the objecting creditor to pay incurred costs to the debtor, or such other amount as it finds necessary.

(9)

On the hearing of an application to object to the order, if the court finds that any of the grounds referred to in subsection (3) have been established, the court may-Rescue, Rehabilitation and Insolvency

(a)

terminate the Debt Rehabilitation Order; or

(b)

make an order amending the Debt Rehabilitation

Order, including the removal of the debt which was the subject of the objection under this section.

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

Cross - Border Insolvency

Part XV

Part XVI

Part XVII

Schedules