Sri Lanka Electricity Act 2009 · As enacted · Part III · Modification and Enforcement of Licences
38. Power of Commission to vest management and control of undertaking of licensee in another authority or person
Official English translation. The Sinhala text prevails.
Official translationFrom Department of Government Printing, unchanged
Where the Commission is satisfied that a licensee who is –
subject to an enforcement order made by the
Commission; or
subject to an insolvency event, is not carrying on the activities that such licensee is authorized to carry on under the licence properly, and that the supply of electricity to consumers is not being or is likely to be given in an efficient, secure and a safe manner, the Commission may with the concurrence of the Minister, by Order published in the Gazette, vest the management and control of the whole or a part of the undertaking of the licensee in any other authority or person specified in the Order and such authority or person shall have all the powers necessary, for carrying on such undertaking:
Provided however where the licensee is subject to an enforcement order and is a person established by law and the provisions of that law does not pemit compliance with the said enforcement order, the Commission shall instead of exercising its powers under this subsection, make such recommendations as to it may deem appropriate to the
Minister to whom the activities of such person is assigned, in order to secure compliance with such enforcement order.
Any person or authority in whom the management and control of an undertaking is vested under subsection (1), shall not be held liable for conduct amounting to a fraudulent preference under the Company Act, No. 7 of 2007, on the ground that it is continuing to carry on the management and control of the licensee’s undertaking.
No Order shall be made under this section without giving the relevant licensee written notice of the proposed
Order and affording the licensee a reasonable opportunity of being heard.
During such period as an Order under this section is in force—
the licensee shall not be or continue to be (as the case may be) voluntarily or compulsorily wound up without the consent of the Commission;
no steps shall be taken by any person to enforce or execute a judgment or security over that licensee’s property, without ten days prior notice in writing to the Commission ; and
the licensee shall not exercise any of his rights under the licence in relation to the undertaking or part thereof.
In this section, “insolvency event” means—
the passing of a resolution for the winding up of a licensee, other than for the purposes of amalgamation or reconstruction;
a licensee entering into a compromise with the licensee’s creditors;
the suspension by the licensee, of payment of debts or the inability of the licensee to pay the licensee’s debts or the declaration of the licensee as bankrupt or insolvent; or
the filing of a petition for the winding up of the licensee.