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As enacted
Contents

Part VI

87. Bankruptcy Petition: court powers of withdrawal, stay and dismissal

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

(1)

A Bankruptcy Petition shall not be withdrawn without the leave of the court.

(2)

When a Bankruptcy Petition is presented to the court, the court shall have power, if it appears appropriate to the court to do so on the grounds that there has been a procedural irregularity or for any other reason, the court may —

(a)

dismiss a Bankruptcy Petition; or

(b)

stay proceedings on a Bankruptcy Petition, on such terms and conditions as necessary.

(3)

When a Bankruptcy Petition is presented to the court, and the court considers that it would be appropriate to allow the debtor to make a proposal for a Debt Restructuring

Arrangement, the court may —

(a)

stay proceedings on the Bankruptcy Petition; and

(b)

invite the debtor to present an application for a Debt Protection Moratorium Order under

Part III.

Rescue, Rehabilitation and Insolvency

(4)

At any time after the presentation of a petition and before the making of a Bankruptcy Order —

(a)

the court may stay any action, execution or other legal process against the property or person of the debtor; and

(b)

any court in which proceedings are pending against a debtor may, on proof that a petition has been presented against the debtor, either stay the proceedings or allow them to continue on such terms as it considers necessary.

(5)

Where there is more than one petition for a Bankruptcy

Order, and one petition has been stayed or adjourned by the court, the court may, if there is a good reason —

(a)

make a Bankruptcy Order on the petition that has not been stayed or adjourned; and

(b)

dismiss the petition that has been stayed or adjourned on terms that the court considers necessary.

(6)

Where a creditor’s petition for a Bankruptcy Order relates to more than one debtor, the court may refuse to make an order in relation to one or more of the debtors without affecting the petition in relation to the remaining debtor or debtors.

Read on from s 88

Part VII

Personal Insolvency Register

Read on from Part VII

Part VIII

Read on from Part VIII

Part IX

Read on from Part IX

Part X

Compromises

Read on from Part X

Part XI

Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

Read on from Part XI

Part XII

Read on from Part XII

Part XIII

Read on from Part XIII

Part XIV

Cross - Border Insolvency

Read on from Part XIV

Part XV

Read on from Part XV

Part XVI

Read on from Part XVI

Part XVII

Read on from Part XVII

Schedules