(1)  Where a worker has accepted the payment of compensation in respect of an injury, the employer may, not sooner than 12 months after the date on which the worker first received payment of compensation in respect of that injury, serve on the worker a notice in writing requiring the worker, not later than 42 days after service of the notice, to commence proceedings against the employer to recover damages in respect of that injury and, if the worker within that period does not commence those proceedings, the employer may apply to the Supreme Court or a judge in chambers for an order that the worker commence proceedings within whatever period that the Court or judge may direct.

(2)  Upon hearing an application under subsection (1) , the Supreme Court or judge in chambers may make an order –

(a) fixing a time within which proceedings to recover damages shall be commenced by the worker; or

(b) adjourning the application –

(i) for a fixed period, or indefinitely (with liberty to the employer to apply); and

(ii) on such terms and conditions as the Court or judge thinks fit –

and may make any other order and give other directions.

(3)  Where, before the end of the time fixed by the Supreme Court or a judge in chambers in accordance with subsection (2) (a) , the worker files an application for an extension of that time, the Supreme Court or judge may order an extension.

(4)  Upon the hearing of an application adjourned pursuant to subsection (2) (b) , the Supreme Court or a judge in chambers may make any order under subsection (2) in relation to that application.

(5)  Where a worker does not commence proceedings against an employer to recover damages in respect of an injury, within –

(a) a time fixed by the Supreme Court or a judge in chambers in accordance with subsection (2) (a) ; or

(b) any extension of that time granted under subsection (3) –

any right of action of the worker to recover damages in respect of that injury is, without affecting his right to compensation under this Act, forever barred and extinguished.