Settlement Of Debts Law (No. 27 of 1975)

Sri Lanka Consolidated Acts

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Settlement Of Debts Law (No. 27 of 1975) - Sect 5

Duties of Conciliation Board in dealing with applications

(1) Where any application is referred for settlement or determination to a Conciliation Board under this Law it shall, be the duty of the Board to summon the parties named in the application to appear before the Board and after a preliminary inquiry to make every effort to induce the parties to come to an amicable settlement.

(2) Where the parties fail to come to an amicable settlement, the Board shall after receiving such evidence, both written and oral, as may be adduced by the parties, and such other evidence as the Board thinks necessary, make a determination on such application.

(3) For the purpose of making a. determination under subsection (2), the Board shall take into consideration ail or any of the following matters, as may be applicable, that Is to say-

	(a) the original amount due to the creditor ;

	(b) the period of time during which such amount, or, where par; of such amount has been paid, the balance due, has remained unpaid ;

	(c) the reasonableness of the rate of interest charged ;

	(d) the amount already paid as or by way of interest and other charges ;

	(e) the capacity of the debtor to pay the amount due from him ;

	(f) the financial position of the creditor ; and

	(g) such other matters which the Board thinks it desirable to take into account.

(4) The terms of settlement between the parties or the determination of the Board on any application, as the case may be, shall-

	(a) specify the amount or amounts, if any, payable to the creditor by the debtor or debtors in full settlement of his or their obligation and the date on which such amount or amounts are payable ;

	(b) where the debtor or debtors is or are permitted to pay such amount in instalments, specify the amount of such, instalments and the dates on which such instalments are payable ; and

	(c) be set out in a certificate signed by the President of the Board, and a certified copy of such certificate shall be issued to each such party named in such application.

(5) Where default is made in the payment of any instalment payable in accordance with the settlement or the determination of the Board, default shall be deemed to have been made in respect of the whole of the unpaid amount due on such settlement or determination.

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