349.
| (1) Where, in the case of a company wound up in Sri Lanka, anything made or done after the appointed date is void under the provisions of section 348 as a fraudulent preference of a person interested in property mortgaged or charged to secure the company's debt, then (without prejudice to any rights or liabilities arising apart from the provisions of this section) the person preferred shall be subject to the same liabilities, and shall have the same rights, as if he had undertaken to be personally liable as surety for the debt to the extent of the charge on the property or the value of his interest, whichever is the less. |
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| (2) The value of the interest of the person preferred shall be determined as at the date of the transaction constituting the fraudulent preference, and shall be determined as if the interest is free of all encumbrances other than those to which the charge for the debt of the company was then subject. |
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| (3) On any application made to the court with respect to any payment on the ground that the payment was a fraudulent preference of a surety or guarantor, the court shall have jurisdiction to determine any questions with respect to the payment arising between the person to whom the payment was made and the surety or guarantor and to grant relief in respect thereof, notwithstanding that it is not necessary so to do for the purposes of the winding up, and for that purpose may give leave to bring in the surety or guarantor as a third party as in the case of an. action for the recovery of the sum paid. |
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Sri Lanka Consolidated Acts