5. Section 39 of the principal enactment is hereby amended as follows: -
| (1) by the renumbering of that section as subsection (1) of that section; and |
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| (2) by the addition, after the renumbered subsection (1) of that section, of the following new subsection: -
| | " (2) Where a certificate has been granted under this Ordinance in respect of a debt secured by a conditional transfer of immovable property and subsequent to the granting of that certificate an action is instituted in any court for the recovery of that property, the court-
| | | (a) may, notwithstanding that the title to that property has vested in the creditor in relation to that debt, make such appropriate orders as are necessary to reconvey title to, and possession of, that property to the debtor, in relation to that debt, on the payment by the debtor of the debt together with the interest thereon in such instalments and within such period not exceeding ten years, as the court thinks fit; and |
| (b) where the action is instituted by the creditor or any person claming title to the property through the creditor, shall not allow the creditor or that person any costs in such action, and shall not allow in respect of any period subsequent to the receipt by the Board of the application for the settlement of that debt, any interest on the amount of the debt in excess of simple interest at a rate not higher than the prescribed rate". |
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Sri Lanka Consolidated Acts