Comparison View

Formal Consolidation |  Amended Act 29 of 2020
Temporary relief from actions for inability to perform scheduled contract
5.—(1)  This section applies to a case where —
(a)a party to a scheduled contract (called in this Division A) is or will be unable to perform an obligation in the contract (called in this Division the subject inability), being an obligation that is to be performed on or after 1 February 2020;
[Act 29 of 2020 wef 20/06/2020]
(b)the inability is to a material extent caused by a COVID‑19 event; and
[Act 29 of 2020 wef 20/06/2020]
(c)A has served a notification for relief in accordance with section 9(1) on —
(i)the other party or parties to the contract;
(ii)any guarantor or surety for A’s obligation in the contract; and
(iii)such other person as may be prescribed.
(1A)  In subsection (1)(a), where the scheduled contract is an event contract or a tourism-related contract, A’s inability to hold the event in question, or to accept the goods or services in question, on the date agreed in the contract is treated as an inability to perform an obligation in the contract.
[Act 29 of 2020 wef 20/06/2020]
(2)  Despite any law or anything in the contract, another party to the contract (called in this Division B) may not take any action described in subsection (3) in relation to the subject inability until after the earliest of the following:
(a)the expiry of the prescribed period;
(b)the withdrawal by A of A’s notification for relief;
(c)on an application under section 9(2), the assessor makes a determination that the case in question is not one to which this section applies.
(3)  The actions mentioned in subsection (2) are —
(a)the commencement or continuation of an action in a court against A or A’s guarantor or surety;
(b)the commencement or continuation of arbitral proceedings under the Arbitration Act (Cap. 10) against A or A’s guarantor or surety;
(c)the enforcement of any security over any immovable property;
(d)the enforcement of any security over any movable property used for the purpose of a trade, business or profession;
 
Example
 
Plant and machinery.
(e)the making of an application under section 210(1) of the Companies Act (Cap. 50) for a meeting of creditors to be summoned to approve a compromise or an arrangement in relation to A or A’s guarantor or surety;
(f)the making of an application for a judicial management order in relation to A or A’s guarantor or surety;
(g)the making of an application for the winding up of A or A’s guarantor or surety;
(h)the making of a bankruptcy application against A or A’s guarantor or surety;
(i)the appointment of a receiver or manager over any property or undertaking of A or A’s guarantor or surety;
(j)the commencement or levying of execution, distress or other legal process against any property of A or A’s guarantor or surety, except with the leave of the court and subject to such terms as the court imposes;
(k)the repossession of any goods under any chattels leasing agreement, hire‑purchase agreement or retention of title agreement, being goods used for the purpose of a trade, business or profession;
 
Example
 
A motor car used as a private hire car, that is the subject of a hire‑purchase agreement.
(l)the termination of a scheduled contract (being a lease or licence of immovable property) where the subject inability is the non‑payment of rent or other moneys;
(m)the exercise of a right of re-entry or forfeiture under a scheduled contract (being a lease or licence of immovable property), or the exercise of any other right that has a similar outcome;
(n)the enforcement against A or A’s guarantor or surety of a judgment of a court, an award made by an arbitral tribunal in arbitral proceedings conducted under the Arbitration Act, or a determination by an adjudicator under the Building and Construction Industry Security of Payment Act; and
(o)such other action as may be prescribed.
(4)  The Minister may by regulations made under section 19 provide that any paragraph (or a part of it) in subsection (3) —
(a)does not apply in relation to a description of scheduled contracts (or a part of such contract); or
(b)applies in relation to a description of scheduled contracts (or a part of such contract) subject to modifications set out in the regulations,
and this Part applies in relation to that description of scheduled contracts (or part) as if that paragraph (or part) were omitted or modified in the manner so set out.
(5)  For the purposes of paragraph (a) or (b) of subsection (3), where the proceedings relate to the subject inability and any other matter, that paragraph does not apply to the part of the proceedings relating to that other matter.
(6)  Where the scheduled contract is one mentioned in sub‑paragraph (a) or (b) of paragraph 1 of the Schedule, the actions in subsection (3) only apply in relation to a security mentioned in that sub‑paragraph or the part of the obligation that is secured by such security.
(7)  Any period of limitation prescribed by any law or in any contract for the taking of an action in relation to the subject inability is extended by a period equal to the period beginning on the date of service by A of the notification for relief in accordance with section 9(1) and ending on the earliest of the following:
(a)the expiry of the prescribed period;
(b)the withdrawal by A of A’s notification for relief;
(c)on an application under section 9(2), the making of a determination by the assessor that the case in question is not one to which this section applies.
(8)  Any of the following, namely:
(a)proceedings before a court;
(b)arbitral proceedings under the Arbitration Act;
(c)such other proceedings as may be prescribed,
in relation to the subject inability, that are pending at the time A serves the notification for relief in accordance with section 9(1), must be stayed on the lodgment by A of a copy of the notification for relief with the court, arbitral tribunal, or other person or body before which the proceedings are brought, until the earliest of the following:
(d)the expiry of the prescribed period;
(e)the withdrawal by A of A’s notification for relief;
(f)on an application under section 9(2), the assessor makes a determination that the case in question is not one to which this section applies.
(9)  For the purposes of the winding up of A or A’s guarantor or surety, and despite anything in any law, each of the following periods is extended by a period equal to the period mentioned in subsection (7):
(a)each period mentioned in sections 100(1)(a), (b) and (c) and 103(2) of the Bankruptcy Act (Cap. 20) (as applied by section 329 of the Companies Act, or section 329 of the Companies Act as applied by section 130 of the Variable Capital Companies Act 2018 (Act 44 of 2018));
(b)each period mentioned in sections 330, 331(1) and (2) and 341(2) of the Companies Act (including those provisions as applied by section 130 of the Variable Capital Companies Act 2018);
(c)each period mentioned in section 226(1)(a), (b) and (c) of the Insolvency, Restructuring and Dissolution Act 2018 (Act 40 of 2018) (including that provision as applied by section 130 of the Variable Capital Companies Act 2018);
(d)each period mentioned in sections 228(2), 229(2)(a) and (b) and 240(2) of the Insolvency, Restructuring and Dissolution Act 2018 (including those provisions as applied by section 130 of the Variable Capital Companies Act 2018);
(e)each period mentioned in paragraphs 79(1)(a), (b) and (c), 82(2), 84(1) and 85(1) and (2) of the Fifth Schedule to the Limited Liability Partnerships Act (Cap. 163A).
(10)  For the purposes of a judicial management of A or A’s guarantor or surety, and despite anything in any law, each of the following periods is extended by a period equal to the period mentioned in subsection (7):
(a)each period mentioned in sections 100(1)(a), (b) and (c) and 103(2) of the Bankruptcy Act (as applied by section 227T of the Companies Act);
(b)the period mentioned in section 341(2) of the Companies Act (as applied by section 227X(b) of the Companies Act);
(c)each period mentioned in sections 226(1)(a), (b) and (c), 228(2), 229(2)(a), (b) and (c) and 240(2) of the Insolvency, Restructuring and Dissolution Act 2018.
(11)  For the purposes of the bankruptcy of A or A’s guarantor or surety, and despite anything in any law, each of the following periods is extended by a period equal to the period mentioned in subsection (7):
(a)each period mentioned in sections 100(1)(a), (b) and (c) and 103(2) of the Bankruptcy Act;
(b)each period mentioned in sections 363(1)(a), (b) and (c) and 366(2) of the Insolvency, Restructuring and Dissolution Act 2018.
(12)  Regulations may be made under section 19 to extend any period specified in any other written law governing any other entity or matter that corresponds to any provision mentioned in subsection (9) or (10).
(13)  This section does not affect the taking of any other action in relation to the subject inability, including an action pursuant to the Frustrated Contracts Act (Cap. 115) or a force majeure clause in the contract where applicable.
(14)  This section does not apply in such circumstances as may be prescribed by regulations made under section 19.
Informal Consolidation | Amended S 476/2020
Temporary relief from actions for inability to perform scheduled contract
5.—(1)  This section applies to a case where —
(a)a party to a scheduled contract (called in this Division A) is or will be unable to perform an obligation in the contract (called in this Division the subject inability), being an obligation that is to be performed on or after 1 February 2020;
[Act 29 of 2020 wef 20/06/2020]
(b)the inability is to a material extent caused by a COVID‑19 event; and
[Act 29 of 2020 wef 20/06/2020]
(c)A has served a notification for relief in accordance with section 9(1) on —
(i)the other party or parties to the contract;
(ii)any guarantor or surety for A’s obligation in the contract; and
(iii)such other person as may be prescribed.
(1A)  In subsection (1)(a), where the scheduled contract is an event contract or a tourism-related contract, A’s inability to hold the event in question, or to accept the goods or services in question, on the date agreed in the contract is treated as an inability to perform an obligation in the contract.
[Act 29 of 2020 wef 20/06/2020]
(2)  Despite any law or anything in the contract, another party to the contract (called in this Division B) may not take any action described in subsection (3) in relation to the subject inability until after the earliest of the following:
(a)the expiry of the prescribed period;
(b)the withdrawal by A of A’s notification for relief;
(c)on an application under section 9(2), the assessor makes a determination that the case in question is not one to which this section applies.
(3)  The actions mentioned in subsection (2) are —
(a)the commencement or continuation of an action in a court against A or A’s guarantor or surety;
(b)the commencement or continuation of arbitral proceedings under the Arbitration Act (Cap. 10) against A or A’s guarantor or surety;
(c)the enforcement of any security over any immovable property;
(d)the enforcement of any security over any movable property used for the purpose of a trade, business or profession;
 
Example
 
Plant and machinery.
(e)the making of an application under section 210(1) of the Companies Act (Cap. 50) for a meeting of creditors to be summoned to approve a compromise or an arrangement in relation to A or A’s guarantor or surety;
(f)the making of an application for a judicial management order in relation to A or A’s guarantor or surety;
(g)the making of an application for the winding up of A or A’s guarantor or surety;
(h)the making of a bankruptcy application against A or A’s guarantor or surety;
(i)the appointment of a receiver or manager over any property or undertaking of A or A’s guarantor or surety;
(j)the commencement or levying of execution, distress or other legal process against any property of A or A’s guarantor or surety, except with the leave of the court and subject to such terms as the court imposes;
(k)the repossession of any goods under any chattels leasing agreement, hire‑purchase agreement or retention of title agreement, being goods used for the purpose of a trade, business or profession;
 
Example
 
A motor car used as a private hire car, that is the subject of a hire‑purchase agreement.
(l)the termination of a scheduled contract (being a lease or licence of immovable property) where the subject inability is the non‑payment of rent or other moneys;
(m)the exercise of a right of re-entry or forfeiture under a scheduled contract (being a lease or licence of immovable property), or the exercise of any other right that has a similar outcome;
(n)the enforcement against A or A’s guarantor or surety of a judgment of a court, an award made by an arbitral tribunal in arbitral proceedings conducted under the Arbitration Act, or a determination by an adjudicator under the Building and Construction Industry Security of Payment Act; and
(o)such other action as may be prescribed.
(4)  The Minister may by regulations made under section 19 provide that any paragraph (or a part of it) in subsection (3) —
(a)does not apply in relation to a description of scheduled contracts (or a part of such contract); or
(b)applies in relation to a description of scheduled contracts (or a part of such contract) subject to modifications set out in the regulations,
and this Part applies in relation to that description of scheduled contracts (or part) as if that paragraph (or part) were omitted or modified in the manner so set out.
(5)  For the purposes of paragraph (a) or (b) of subsection (3), where the proceedings relate to the subject inability and any other matter, that paragraph does not apply to the part of the proceedings relating to that other matter.
(6)  Where the scheduled contract is one mentioned in sub‑paragraph (a) or (b) of paragraph 1 of the Schedule, the actions in subsection (3) only apply in relation to a security mentioned in that sub‑paragraph or the part of the obligation that is secured by such security.
(7)  Any period of limitation prescribed by any law or in any contract for the taking of an action in relation to the subject inability is extended by a period equal to the period beginning on the date of service by A of the notification for relief in accordance with section 9(1) and ending on the earliest of the following:
(a)the expiry of the prescribed period;
(b)the withdrawal by A of A’s notification for relief;
(c)on an application under section 9(2), the making of a determination by the assessor that the case in question is not one to which this section applies.
(8)  Any of the following, namely:
(a)proceedings before a court;
(b)arbitral proceedings under the Arbitration Act;
(c)such other proceedings as may be prescribed,
in relation to the subject inability, that are pending at the time A serves the notification for relief in accordance with section 9(1), must be stayed on the lodgment by A of a copy of the notification for relief with the court, arbitral tribunal, or other person or body before which the proceedings are brought, until the earliest of the following:
(d)the expiry of the prescribed period;
(e)the withdrawal by A of A’s notification for relief;
(f)on an application under section 9(2), the assessor makes a determination that the case in question is not one to which this section applies.
(9)  For the purposes of the winding up of A or A’s guarantor or surety, and despite anything in any law, each of the following periods is extended by a period equal to the period mentioned in subsection (7):
(a)each period mentioned in sections 100(1)(a), (b) and (c) and 103(2) of the Bankruptcy Act (Cap. 20) (as applied by section 329 of the Companies Act, or section 329 of the Companies Act as applied by section 130 of the Variable Capital Companies Act 2018 (Act 44 of 2018));
(b)each period mentioned in sections 330, 331(1) and (2) and 341(2) of the Companies Act (including those provisions as applied by section 130 of the Variable Capital Companies Act 2018);
(c)each period mentioned in section 226(1)(a), (b) and (c) of the Insolvency, Restructuring and Dissolution Act 2018 (Act 40 of 2018) (including that provision as applied by section 130 of the Variable Capital Companies Act 2018);
(d)each period mentioned in sections 228(2), 229(2)(a) and (b) and 240(2) of the Insolvency, Restructuring and Dissolution Act 2018 (including those provisions as applied by section 130 of the Variable Capital Companies Act 2018);
(e)each period mentioned in paragraphs 79(1)(a), (b) and (c), 82(2), 84(1) and 85(1) and (2) of the Fifth Schedule to the Limited Liability Partnerships Act (Cap. 163A).
(10)  For the purposes of a judicial management of A or A’s guarantor or surety, and despite anything in any law, each of the following periods is extended by a period equal to the period mentioned in subsection (7):
(a)each period mentioned in sections 100(1)(a), (b) and (c) and 103(2) of the Bankruptcy Act (as applied by section 227T of the Companies Act);
(b)the period mentioned in section 341(2) of the Companies Act (as applied by section 227X(b) of the Companies Act);
(c)each period mentioned in sections 226(1)(a), (b) and (c), 228(2), 229(2)(a), (b) and (c) and 240(2) of the Insolvency, Restructuring and Dissolution Act 2018.
(11)  For the purposes of the bankruptcy of A or A’s guarantor or surety, and despite anything in any law, each of the following periods is extended by a period equal to the period mentioned in subsection (7):
(a)each period mentioned in sections 100(1)(a), (b) and (c) and 103(2) of the Bankruptcy Act;
(b)each period mentioned in sections 363(1)(a), (b) and (c) and 366(2) of the Insolvency, Restructuring and Dissolution Act 2018.
(12)  Regulations may be made under section 19 to extend any period specified in any other written law governing any other entity or matter that corresponds to any provision mentioned in subsection (9) or (10).
(13)  This section does not affect the taking of any other action in relation to the subject inability, including an action pursuant to the Frustrated Contracts Act (Cap. 115) or a force majeure clause in the contract where applicable.
(14)  This section does not apply in such circumstances as may be prescribed by regulations made under section 19.