3.
| (1) Where an inland trust receipt has been executed by any person in conformity with the provisions of section 2 and the inland trust receipt is registered under the Registration of Documents Ordinance as a bill of sale affecting the goods to which it relates, the following provisions shall apply during such time as any money stated in the inland trust receipt to be due or to become payable thereunder to the agency remain due and unpaid-
| | (a) the agency shall, in the event of the seizure of the goods by any other person in execution of any decree of any court, be entitled, upon application made to that court in the action in the course of which the seizure was effected, to an order directing that the goods shall be sold, either by public auction by an auctioneer, selected by the agency and approved, by the court, or in such manner as the court may direct, and in accordance with such direction as may be issued by the court. Upon the sale of such goods the agency shall be entitled to retain out of the proceeds of sale the amount due under the inland trust receipt, and the balance, if any, of the proceeds of sale shall be paid into court and be deemed to be proceed of the sale of the goods in execution of the decree under which they were seized; | | |
| | (b) the agency shall, in the event of the insolvency of the person by whom the inland trust receipt is executed, be entitled to obtain from the court in which the proceedings upon such insolvency are pending, an order directing that the goods to which the inland trust receipt relates shall be delivered to the agency and shall be sold either by public auction by an auctioneer selected by the agency and approved by the court, or in such other manner as the court may direct, and in accordance with such directions as may be issued by the court. Upon the sale of such goods, the agency shall be entitled to retain out of the proceeds of sale the amount due under the inland trust receipt and the balance if any, of the proceeds of sale shall be paid into court to the credit of the assigner of the estate of the insolvent; | | |
| | (c) where any goods are delivered to the agency in compliance with any undertaking referred to in. paragraph (e) of subsection (2) of section 2, the agency may sell the goods so delivered, whether after removal thereof, or at the premises in which the goods are kept if the person executing the inland trust receipt consents to a sale at such premises. The agency shall be entitled to retain, out of the proceeds of Rate of the goods, the amount due to it under the inland trust receipt, and the balance, if any, shall be paid to the person by whom the inland trust receipt was executed; and | | |
| | (d) the person by whom the inland trust receipt was executed shall, if he commits a breach or fails to comply with any undertaking referred to in subsection (2) of section 2, being an undertaking contained in the inland trust receipt, be guilty of an offence and shall on conviction after summary trial by a Magistrate be liable to imprisonment of either description for a term not exceeding three years or to a fine of an amount not less than the amount of the money stated in the inland trust receipt to be due or to become payable thereunder to the agency, and not exceeding three times that amount. | | |
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| (2) The provisions of this act relating to the payment to, or the recovery by, an approved credit agency, of the amount due under an inland trust receipt shall be in addition, to, and not in substitution or derogation of, the provisions of any written or other law under which any right or remedy is available to the agency for the purpose of the recovery of that amount, or where any part of that amount has already been paid or recovered, of the balance remaining due. |
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Sri Lanka Consolidated Acts