CO885-(25-26) — Page 298

283

PUBLIC RECORD OFFICE

Reference :-

CO.885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH—NOT TO

56

CHAPTER IV.

Legal Proceedings.

12. Special rules as to legal proceedings. The following provisions shall take effect with reference to enemy firms under this Ordinance:-

(a) In the case of a firm which is not a company no proceeding in insolvency under Ordinance No. 7 of 1853 shall be instituted against such firm, and in the case of a firm which is a company no proceeding for the winding up thereof shall be instituted under panies Ordinance, 1861 ";

(6) Except in the following cases, that is to say :-

The Joint Stock Com-

(1) In the case of "insolvency proceedings under Ordinance No. 7

of 1853;

(2) In the case of proceedings for the winding up of a company under

"The Joint Stock Companies Ordinance, 1861 ";

(3) In the case of proceedings under "The Land Acquisition Ordinance, 1876," or the Order of the Queen in Council of 26th October, 1916 [1896];

no other action or other civil proceeding with reference to any matter relating to the business of the firm shall be instituted by or against such firm or any partner thereof or the liquidator thereof, save in accordance with the procedure prescribed by this chapter;

(c) With respect to all actions or other legal proceedings already instituted, any Court of the Colony before which such action or proceeding is pending may, on application by or on behalf of either party, give such direc- tions as may best conduce to the expeditious determination thereof according to such procedure as it may prescribe, and shall in all cases where such a course is feasible adapt the procedure to be followed in such action or proceeding as nearly as possible to the procedure pre- scribed by this chapter;

(d) With respect to all actions or other legal proceedings already insti- tuted by or on behalf of any enemy firm which have been stayed, struck out, or otherwise dealt with by reason of any disability of the said firm, the Court before which any such action or proceeding was originally instituted may in its discretion order that, for the purposes of the liquidation, such action or proceeding shall revive or continue, subject to the directions of the Court under the last preceding para- graph, or that fresh proceedings be instituted by or against the liquidator under this Ordinance in respect of the same cause or matter, and may otherwise give such directions with reference to the matter in question as it shall deem just and expedient.

13. Special procedure for the expeditious determination of claims.—(1) The liquidator of any enemy firm for the purpose of any claim against any person, and any person other an an enemy or a partner in an enemy firm, for the purpose of any claim against an enemy firm or the liquidator thereof, may make application to the District Court of Colombo for the issue of a summons calling upon such person, or the liquidator of such firm, to show cause on a date fixed in the summons why such claim should not be satisfied, and the Court shall issue such summons accordingly.

(2) Upon the hearing the Court shall determine the matter in a summary manner, according to such procedure as it may direct, for the purpose of the most expeditious decision of the issue between the parties, and may enter up judgment in accordance with its determination, and all the relevant provisions of the Civil Procedure Code shall apply for the purpose of the enforcement of such judgment.

14. Court may determine any question arising in the liquidation. The liquidator, or any person interested in the liquidation of any enemy firm other than, an enemy or a partner in the firm, may, in any case which cannot conveniently be dealt with under the last preceding section, apply to the District Court of Colombo for the determination of any question or matter arising in the course of the liquidation, and the Court shall, subject to such notices and such other procedure as it may direct, determine such question or matter accordingly, and may enter up judgment in accordance with its determination, and all the relevant provisions of the Civil Procedure Code shall apply for the purpose of the enforcement of such judgment.

57

15. Proceedings under this chapter to have precedence.-All proceedings under this chapter shall take precedence of all other business of the Court of every description, and shall be heard either in Court or Chambers as the Court may direct,

16. Appeals. (1) An appeal shall lie at the suit of any party aggrieved by any final order under this chapter to the Supreme Court.

(2) Every such appeal shall be presented within the same time, and shall be dealt with in the same manner and shall be entitled to the same precedence, as appeals from interlocutory orders of District Courts.

17. No execution against property of enemy firm without consent of Custodian.-No execution, or proceeding in the nature of execution, shall be issued or taken in pursuance of any order or judgment made or given (whether before or after the commencement of this Ordinance) against any enemy firm or any partners thereof without the written consent of the Custodian of Enemy Property.

18. Orders and judgments binding against enemy firm.-Every order or judgment made or given in any proceeding instituted or continued under the pro- visions of this chapter, or otherwise instituted or continued by or against a liquidator in pursuance of the provisions of this Ordinance, shall for all purposes and in all respects be binding upon the enemy firm in respect of which the order or judgment is made or given, and all persons entitled to the profits of the business of the said firm, and upon all persons claiming through or against the same, as if such proceeding had been instituted by or against, or the order or judgment had been made or given for or against, such enemy firm in ordinary course of law.

CHAPTER V.

General Provisions.

19. Power to disclaim contract, etc.-A liquidator may disclaim any con- tract made between an enemy firm and any other person, or any property of the firm or any interest therein, which is burdened with any onerous obligation; pro- vided that if any person (other than an enemy or a partner in an enemy firm) shall allege that he has suffered damage or is otherwise entitled to relief by reason of such disclaimer he may (in default of the settlement of the matter by agreement) apply to the Court under Chapter IV. hereof, and the Court on such application

make such order as may be just.

may

20. Where enemy firm insolvent. In any case in which the assets of an enemy firm are not sufficient to discharge the liabilities for which provision is made under this Ordinance, it'shall be the duty of the liquidator (subject to any special pro- vision of this Ordinance) to deal with all claims against such firm as nearly as possible in the same manner as such claims would have been dealt with under the Order of the competent Court if the estate of the firm was being administered, or if the firm was being wound up under Ordinance No. 7 of 1853 or under "The Joint Stock Companies Ordinance, 1861," respectively.

21. Land Acquisition proceedings.-(1) In any case in which any proceedings under "The Land Acquisition Ordinance, 1876," or under the Order of the Queen in Council of 28th October, 1896, are instituted, or have been instituted, with reference to any property of any enemy firm which is vested in any liquidator under this Ordinance, or with reference to any property in which any enemy firm is interested, the liquidator shall be deemed to be the only person entitled to repre- sent the interest of the enemy firm (or in the case of a partnership of any partner thereof) under the said Ordinance or Order, and any sum paid to or received by the liquidator as compensation under the said Ordinance or Order shall be deemed to be proceeds of the liquidation.

(2) In the case of any such proceedings under "The land Acquisition Ordinance, 1876," if any claim is made on behalf of any enemy, or when the enemy firm is a partnership on behalf of any partner in the firm as being a person interested, or if the Government Agent has reason to think that any enemy or any partner in an enemy firm is a person interested, no account shall be taken of any such claim or of the interests of any such person in the acquisition proceedings either by the Government Agent or the District Court, but in any such case it shall be the duty of the liquidator to pay any sum received by him as compensation under the said Ordinance to the Custodian of Enemy Property, and any sum so paid shall be held by the Custodian in a separate account subject to the orders of the Governor. (3) In the case of any such proceedings under the said Ordinance the notice issued by the Government Agent under Section 7 of the said Ordinance may include