13.
| (1) The Board of Directors of the company may, with the prior approval of the Minister, repudiate in writing the liabilities of the company under any contract or agreement entered into by the company before the appointed date with any other person or persons on the ground that such liabilities were incurred mala fide, dishonestly or fraudulently, and thereupon such liabilities shall be deemed never to have been, or to be, the liabilities of the company. Notice of such repudiation shall be sent by such Board by registered letter through the post to such other person or persons. |
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| (2) No compensation shall, save as otherwise provided in subsection (3), be payable by the company to any person for any loss or damage suffered by him by reason of the repudiation of any liabilities under any contract or agreement under subsection (1), whether or not such person was a party to the contract or agreement. |
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| (3) Where the liabilities of the company under any contract or agreement have been repudiated under subsection (1), then, if at the time of such repudiation the other party or parties to the con tract or agreement had duly fulfilled his or their obligations under the contract or agreement, compensation shall be payable by the company to such other party or parties for any loss or damage suffered by him or them by reason of such repudiation. The amount of such compensation shall be determined on quantum meruit principle by agreement between the Board of Directors of the company and such other party or parties or, in the absence of such agreement, by an arbitrator appointed by the Minister. Such determination shall be final and conclusive, and shall not be called in question in any court or tribunal, whether by way of action, application in revision, appeal, writ or otherwise. |
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| (4) Any compensation payable by the company under this section shall be paid out of the funds of the company and accordingly such payment shall be deemed to be a purpose for which such funds may be lawfully expended. |
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Sri Lanka Consolidated Acts