10.
| (1) The Controller-
| | (a) shall cancel the registration of an insurer, either wholly or in respect of any particular class of insurance business, as the case may be-
| | | (i) if the insurer is in liquidation or is adjudged an insolvent; |
| (ii) if the insurer makes default in complying with the provisions of section 12 or section 44 or if the whole of the deposit made under this Act has been returned to the company as hereinafter provided; |
| (iii) if the insurance business of the insurer has been transferred to any other person, or amalgamated with the business of, or wholly reinsured with, any other person; and |
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| | (b) may cancel the registration of an insurer-
| | | (i) if the insurer makes default in complying with, or acts in contravention of, any requirement of this Act or of any regulation or order made thereunder; or |
| (ii) if the insurer fails to comply with any requirement of section 38; or |
| (iii) if the Controller has reason to believe that any amount due by the insurer under a decree entered in an action in Ceylon arising out of any policy of insurance issued by the insurer has remained unpaid for three months after the date of the final adjudication in such action; or |
| (iv) if the insurer carries on any business other than insurance business; or |
| (v) in any other case in which he is authorized by this Act to cancel the registration. |
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| (2) Where in any case referred to in sub-paragraph (ii) or sub-paragraph (iii) of paragraph (a) of subsection (1), the default or the transfer or amalgamation or reinsurance of the business or the return of the deposit relates only to one or more, but not all, of the classes of insurance business carried on by the insurer, the Controller may, upon the cancellation of the registration of the insurer under that paragraph, register the insurer afresh in respect of any other class of insurance business and issue a fresh certificate in respect of that class of insurance business in accordance with the provisions of section 7. |
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| (3) In any case where a registered insurer ceases to carry on insurance business of any class or proposes to carry on insurance business of any other class not previously carried on by the insurer, the Controller may alter the registration of the insurer in such manner as may be necessary, and may alter the certificate of registration issued to that insurer or cancel such certificate and issue a fresh certificate of registration under section 7, as the circumstances of the case may require: |
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| (4) In any case where the Controller is satisfied,-
| | (a) that any insurer has contravened the provisions of section 19 or any order made thereunder; and | | |
| | (b) that for the reason aforesaid it is expedient in the interests of the policy holders that the insurer should be prevented from carrying on insurance business in Ceylon, | | |
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| (5) Notice of any order made under subsection (4) shall be served on the insurer, and the order shall take effect upon the expiration of a period of two months after the date of the service of the notice unless an appeal as hereinafter provided is preferred against the order. |
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| (6) The insurer in respect of whom or which an order is made under subsection (4) may, before the expiry of a period of two months after the date of the service of notice of the order on the insurer, appeal to the District Court against the order; and such Court may, if it is satisfied that the insurer has not contravened the provisions of section 19, revoke the order of the Controller. |
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| (7) The order of the District Court on any appeal under this section shall be subject to an appeal to the Supreme Court and such appeal shall be preferred in like manner as though it were an appeal against a final order of the District Court made in a civil action. |
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Sri Lanka Consolidated Acts