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Contents

Part V · Debt Rehabilitation Orders

76. Termination of Debt Rehabilitaion Order

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

(1)

The Official Receiver may, while the Debt

Rehabilitation Order remains in effect, apply to the court to request for the termination of the Debt Rehabilitation Order.

(2)

An application to terminate an order under subsection (1) shall —

(a)

be made at least forty-five days before the date of discharge which would otherwise occur under section 72, but for this application;

(b)

be made by the Official Receiver in lodging of a request for termination with the court, on written notice to the debtor and to all known creditors;

and

(c)

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

(3)

The grounds on which an application to terminate an

Order shall be limited to the following:-

(a)

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

Rehabilitation Order application;

(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; or

(c)

the debtor has not complied, with the duties of debtor's set out in sections 32 and 71 to the satisfaction of the Official Receiver.

Rescue, Rehabilitation and Insolvency

(4)

On receiving an application to terminate the order, the court shall fix a date for a hearing of the application, to take place within fourteen days after the receipt of the application, or such other period as may be prescribed.

(5)

The court shall provide written notice to the debtor, creditors and the Official Receiver of the hearing of the application to terminate the Order.

(6)

On receiving an application to terminate 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 terminate the order, the court may extend the duration of the order for the limited 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)

the need for appropriate investigation of an objection where a creditor or creditors may otherwise suffer unfair prejudice;

(ii)

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

and

(iii)

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

Rescue, Rehabilitation and Insolvency

(8)

On the hearing of an application to terminate the order, the court shall dismiss the application to terminate the orders if it finds that the grounds referred to in subsection (3) have not been established.

(9)

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

(a)

terminate the Debt Rehabilitation Order;

(b)

provide for the termination of the Debt

Rehabilitation Order to take effect on such terms and at such time the court may specify;

(c)

convert the Debt Rehabilitation Order into a

Bankruptcy Order under section 77; or

(d)

make an order for enforcement of an obligation of the debtor as specified in sections 32 and 71.

(10)

On terminating of the Debt Rehabilitation Order under subsection (9) —

(a)

the debts that became unenforceable under section 71 on the making of the order become enforceable; and

(b)

the debtor becomes liable to pay any interest, fees or charges that may have accrued.

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