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Contents

Part VI

96. Public Examination of bankrupt in exceptional cases

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

(1)

Where a Bankruptcy Order has been made, the

Official Receiver or Bankruptcy Trustee may at any time before the discharge of the bankrupt debtor apply to the court for the public examination of the bankrupt debtor, where the Official Receiver or Bankruptcy Trustee considers it necessary due to the exceptionally high value of assets potentially available for distribution to creditors in the case, and —

(a)

there is a material inaccuracy in the statement of the debtor’s financial affairs, which ought to be questioned in public; or

(b)

the bankrupt debtor has failed to comply with the responsibilities of debtors under sections 32, 94,

112, 113, 114 or any other relevant provision of this Act.

(2)

On an application under subsection (1), the court shall direct that a public examination of the bankrupt debtor shall be held on a day appointed by the court. The bankrupt debtor shall attend court on that day and be publicly examined as to his affairs, dealings and property.

(3)

The following may take part in the public examination of the bankrupt debtor and may ask questions concerning any affairs, dealings and property, namely—

(a)

the Official Receiver;

(b)

the Bankruptcy Trustee, if such Trustee’s appointment has taken effect; and

(c)

any creditor of the bankrupt who has submitted a proof in the bankruptcy.

(4)

If a bankrupt debtor without reasonable excuse fails at any time to attend a public examination under this section, the court may, for the purpose of bringing that person and

Rescue, Rehabilitation and Insolvency anything in such person’s possession before the court, cause a warrant to be issued —

(a)

for the arrest of the bankrupt debtor; and

(b)

for the seizure of any books, papers, records, money or goods in the bankrupt debtor’s possession.

(5)

The court may authorise a bankrupt debtor arrested under a warrant issued under subsection (4) to be kept in custody, and anything seized under such a warrant to be held, until the bankrupt debtor is brought before the court under the warrant which shall occur as soon as practicable.

(6)

Under this section, the court may also, on the application of the

Official

Receiver or the Bankruptcy Trustee, summon to appear before it —

(a)

the spouse or former spouse of the bankrupt debtor;

(b)

any person known or believed to have any property comprised in the Bankruptcy Estate in ones possession;

(c)

any person known or believed to be indebted to the bankrupt debtor; and

(d)

any person appearing to the court to be able to give information concerning the bankrupt debtor or the dealings, affairs or property of the bankrupt debtor but subject to legal advice privilege or litigation privilege.

(7)

Where the court has summoned a person to appear before it under subsection (6), the provisions of this section shall apply to such person as if the person is a bankruptcy debtor.

Rescue, Rehabilitation and Insolvency

(8)

Where it appears to the court, on consideration of any evidence obtained under this section, that any person has in his possession any property comprised in the Bankruptcy

Estate, the court may, on the application of the Official

Receiver or the Bankruptcy Trustee, order that person to deliver such property to the Official Receiver or the

Bankruptcy Trustee at such time, in such manner, and on such conditions as the court considers fit.

(9)

Where it appears to the court, on consideration of any evidence obtained under this section, that any person is indebted to the bankrupt debtor, the court may, on the application of the Official Receiver or the Bankruptcy

Trustee, order that person to pay to the Official Receiver or the Bankruptcy Trustee at such time, in such manner, and on such conditions as the court considers fit, the whole or part of the amount due.

CHAPTER 3

Appointment of Official Receiver and

Bankruptcy Trustee

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