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PUBLIC RECORD OFFICE

Reference:

TULUI

أسلينا

LC.Q885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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(h) To prove rank and claim in the insolvency, winding up, or liquidation,

(2)

of any person under any liability to the firm;

To do all such other things as may be necessary for winding up the

business of the firm.

(2) In addition to the above powers, every liquidator in the case of a firm which is a company shall have all the powers of an official liquidator under “The Joint Stock Companies Ordinance, 1861," and in the case of any other firm all the powers of an assignee in insolvency under Ordinance No. 7 of 1853, in so far as such powers are not herein enumerated or implied and in so far as the same are not inconsistent with this Ordinance.

6. Application of assets.--(1) The assets of the firm shall be applied in the payment of the following liabilities and in the following order of priority :-

(a) All expenses of and incidental to the winding up (including the

remuneration of the liquidator);

(b) All rates and taxes due from the firm;

(c) All wages and salaries of any clerk or servant in respect of services

rendered to the firm;

All sums of money due to the Crown;

(e) All sums due to persons other than enemies, and, in the case of an enemy

firm which is a partnership, other than a partner

(f) All sums due in respect of any other debt, or class of debt, the discharge

of which may be specially ordered by the Governor.

(2) In any case in which it appears to the liquidator that there is reasonable cause to believe that the assets of the company are not sufficient to discharge in full the liabilities above enumerated, the liabilities referred to in paragraph (e) (subject to the rights of secured creditors) shall be discharged rateably pari passu. (3) In any case in which the net assets of an enemy firm, after deducting the value of all securities held by secured creditors, shall be or become insufficient to discharge the expenses incidents to the winding up, the liquidator may require any secured creditor to make such contribution towards the said expenses as may be equitable, and the amount of such contribution, if not settled by agreement, shall be determined by the Custodian of Enemy Property hereinafter provided for. 7. Payment of surplus proceeds to Custodian of Enemy Property.-Upon the completion of the liquidation the liquidator shall pay all the surplus proceeds realized thereby to the Custodian of Enemy Property, and all sums so paid to such custodian shall be held by him at the disposal of the Governor.

CHAPTER II.

Messrs. Freudenberg & Company.

8. Conversion of the control of the firm of Messrs. Freudenberg & Company into a liquidation.-(1) The controllers of the firm of Messrs. Freudenberg & Com- pany, appointed under the Order of the District Court of Colombo of the 24th October, 1914, shall, in addition to the powers conferred upon them by the said Order (as amended by the Order of the said Court of the 22nd March, 1915), have all the powers conferred upon a liquidator under this Ordinance in so far as the same are not already conferred upon them by the said Order.

(2) The said firm shall be deemed to be a partnership declared an enemy firm under this Ordinance, and the controllers shall be deemed to be liquidators appointed under this Ordinance at the date of the commencement thereof, and all the pro- visions of this Ordinance with reference to liquidators so appointed (including the provisions of Section 3) shall apply to the said controllers as from the said date.

(3) In the application of the said Order, so amended, to the winding up of the said business, such Order shall be construed as if all reference to a committee of management to be appointed by the Court were references to the Custodian of Enemy Property, and the Custodian of Enemy Property shall have all the powers of a committee of management under the said Order, together with such other powers as are vested in him under this Ordinance.

(4) The Court may give all such directions with regard to any scheme or matter pending or in operation, in pursuance of an Order made in the course of the control, as may be necessary or expedient in the circumstances, and may make all necessary orders with reference to any question that may arise for the purpose of the conversion of the control into a liquidation and for the winding up of the business of the firm.

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(5) All contracts made by or with the said controllers, all obligations under- taken to or by them, and all powers and authorities conferred by or upon them or any of them for the purposes of the control, and in particular the power of attorney dated 30th day of March; 1915, executed by James Ford, Arthur John Rhodes, Charles Jermyn Ford, and Arthur Pelham Ford in favour of Harold Douglas Thornton, Patrick Haggard Fraser, and Maurice John Harding, shall continue in force for the purposes of the liquidation and all matters incidental thereto.

CHAPTER III.

Custodian of Enemy Property.

9. Custodian of Enemy Property.-(1) For the purpose of this Ordinance the Governor may appoint any person to be Custodian of Enemy Property, or may order that any person for the time being from time to time discharging the duties

office shall be the Custodian of Enemy Property.

of

any

(2) Duty of Custodian.-It shall be the duty of the Custodian of Enemy Property:

10.

(a) To exercise a general control over all liquidations proceeding under this Ordinance, with a view to facilitating and expediting the procedure of the same and to the carrying out of the objects of this Ordinance; (b) On the completion of any liquidation under this Ordinance to receive the proceeds of the said liquidation and to hold and deal with the same in accordance with the orders of the Governor;

(c) To discharge any other duty imposed upon him under this Ordinance.

Power of liquidator to apply for directions of liquidator.-Any liqui- dator appointed under this Ordinance may at any time apply to the Custodian of Enemy Property for directions either as to the general course of the liquidation or as to any matter arising therein, or for the sanction of any payment made or to be made, or of any action taken or to be taken by such liquidator.

11.

Powers of Custodian.—(1) The Custodian of Enemy Property shall have the following powers:—

(a) To call upon any liquidator to furnish him with any information he may require, in such form as he shall specify, as to the general course of the liquidation, or as to any matter arising therein, and to lay before him all books, papers, and documents that he may require to be produced for his inspection;

(6) To require any liquidator to conform to any general or special direction which the Custodian may give for the purpose of the liquidation;

(c) To require any person whom he has reasonable cause to believe to be possessed of information as to any property belonging to, or supposed to belong to, or any debt due, or supposed to be due, to any enemy firm, or otherwise relating to matters comprised in any liquidation, to attend before him and be examined on oath or affirmation with reference thereto, and to answer truly any question put to him in the course of such examination, and (if necessary) to enforce the attendance of any such person for the purpose of such examination, in the same manner as if such Custodian were a Police Magistrate and such person were a witness summoned to give evidence before him;

(d) To require any person who shall have in his possession or control any book or document relating to the business or to the property of an enemy firm to produce or to deliver to him or to the liquidator such book or document for inspection or consideration, or, if such book or document is the property of the firm, to deliver such book or document into his possession or into the possession of the liquidator.

(2) Any person who without reasonable excuse, the proof whereof shall lie on him, shall make default in complying with a requirement of the Custodian of Enemy Property under paragraphs (c) and (d) of the last preceding sub-section, shall be guilty of an offence, and liable on summary conviction to a fine not exceed- ing one thousand rupees or to simple imprisonment for a period not exceeding six months.