The COVID-19 Act (Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020) which was tabled in the Parliament for first reading on 12th August 2020 has finally been gazetted on 23rd October 2020. For the purpose of this legal update, we shall highlight some of the key changes provided in the Act which are applicable in Sarawak.
1. Inability to perform contractual obligation (Section 7)
This Part is deemed to come into operation on 18th March 2020 and shall continue to remain in operation until 31st December 2020.
The inability of any party to perform any contractual obligations of the categories of contracts specified due to Covid-19 shall not give rise to the other party exercising their rights under the contract. The categories of contract include:
Construction work contract or construction consultancy contract and any other contract related to the supply of construction material, equipment or workers in connection with a construction contract
Performance bond or equivalent that is granted pursuant to a construction contract or supply contract
Professional services contract
Lease or tenancy of non-residential immovable property
Event Contract for the provisions of any venue, accommodation, amenity, transport, entertainment, catering or other goods or services including for any business meeting, incentive travel, conference, exhibition, sales event, concert, show, wedding, party or other social gathering or sporting event for the participants, attendees, guests, patrons of spectators of such gathering or event
Contract by a tourism enterprise as defined under the Tourism Industry Act 1992 and a contract for the promotion of tourism in Malaysia
Religious pilgrimage-related contract
Any dispute due to the inability to perform any contractual obligations stated above may be settled by way of a mediation
2. Limitation period extended
This Part is applicable to specific provisions contained in Limitation Act 1953, Sabah Limitation Ordinance and Sarawak Limitation Ordinance.
For Sarawak Limitation Ordinance – Paragraphs 1 to 4, 5(a), 8 to 29, 31, 32, 34 to 78, 82-94, 96, 98, 100, 106, 107, 111 and 113 in the Schedule which expires during the period from 18th March 2020 to 31st August 2020 shall be extended to 31st December 2020.
For Public Authorities Protection Act 1948 – the limitation period specified in Paragraph 2 (a) which expires during the period from 18th March 2020 to 31st August 2020 shall be extended to 31st December 2020.
3. Insolvency Act 1967
This Part comes into operation on 23rd October 2020 and shall continue to remain in operation until 31st August 2021.
The amount of indebtedness, i.e., the minimum debt threshold for a creditor to present a bankruptcy petition against a debtor is increased to RM100,000-00 from RM50,000-00 (under Sections 20 and 5).
This is not applicable to any proceedings, actions or other matters required to be done under the Insolvency Act 1967 which are still pending immediately before 23rd October 2020.
4. Hire-Purchase Act 1967
This Part is deemed to come into operation on 1st April 2020 and shall continue to remain in operation until 31st December 2020.
No owner shall exercise any power of taking possession of goods under section 16 of the Hire-Purchase Act 1967 for any default of payment of instalment during the period from 1st April 2020 to 30th September 2020.
This is not applicable to any owner who has exercised his power of taking possession of goods under section 16 of the Hire-Purchase Act 1967 before 23rd October 2020.
5. Consumer Protection Act 1999
This Part is deemed to come into operation on 18th March 2020 and shall continue to remain in operation until 31st December 2020.
In the event that the purchaser under a credit sale agreement defaults in payment of two consecutive instalments, the credit facility provider shall not issue a notice to the purchaser on the settlement of the overdue instalments provided that if the credit sale agreement was entered into before 18th March 2020 and if the purchaser has no overdue instalments before 18th March 2020.
Notwithstanding the failure of the purchaser to make the election under section 24V(2), the credit facility provider shall not commence any legal proceedings to recover the total outstanding amount payable by the purchaser under the credit sale agreement.
The period of limitation specified in section 99(2) which expires during the period from 18th March 2020 to 15th June 2020 shall be extended until 31st December 2020.
6. Distress Act 1951
This Part is deemed to come into operation on 18th March 2020 and shall continue to remain in operation until 31st December 2020.
For the purposes of the recovery of rent, a warrant of distress issued under s. 5(1) of the Distress Act 1951 shall not include the distrain for the arrears of rent for the period from 18th March 2020 to 31st August 2020.
This is not applicable to any execution of the warrant of distress for the recovery of rent before 23rd October 2020.
7. Industrial Relations Act 1967
This Part is deemed to come into operation on 18th March 2020.
The period from 18th March 2020 to 9th June 2020 shall be excluded from calculating the period in the following instances: -
For according recognition or notifying the trade union of workmen concerned in writing the grounds for not according recognition by an employer or a trade union of employers (section 9(3))
For the making of a report in writing to the Director General by a workman (section 9(4))
For the filing of representation of unfair dismissal to the Director General by a workman (section 20(1A))
8. Private Employment Agencies Act 1981
This Part is deemed to come into operation on 18th March 2020.
For an application to renew a licence under section 11 (1), the period from 18th March 2020 to 9th June 2020 shall be excluded from the calculation of the period.
9. Commercial Vehicles Licensing Board Act 1987
This Part is deemed to come into operation on 1st August 2020 and shall continue to remain in operation until 31st December 2021.
For “Temporary change of use of public service vehicle” under section 23 and “Temporary change of use of ‘C’ vehicle or ‘A’ vehicle” under section 24, the period has been extended from “not exceeding three months” to “not exceeding twelve months” to use the vehicle concerned, if authorized by the Board upon application made with additional information required for the application.
10. Courts of Judicature Act 1964 (CJA 1964) & Subordinate Courts Act 1948 (SCA 1948) & Subordinate Courts Rules Act 1955 (SCRA 1955)
This Part is deemed to come into operation on 18th March 2020 and shall continue to remain in operation until 23rd October 2020 and shall continue to remain in operation for a period of two years from 23rd October 2020
Under the new Section 16A of CJA 1964, the Chief Justice may issue any direction relating to the business of the High Court and Subordinate Courts if the Chief Justice is of the opinion that the circumstances warrant and it is necessary in the interest of the dispensation of justice, public safety, public security, public health or propriety or for other sufficient reason to do so.
Under the new Section 17(3A) of CJA 1964, the Chief Justice may, if the Chief Justice is of the opinion that any meeting is not possible to be convened, held or conducted, provide for alternative arrangements for such meeting.
Under the new Section 17(8) of CJA 1964, the Chief Justice may modify any provision of the rules of court or suspend the application of such rules of court to ensure that the administration of justice is carried out.
Under the new Section 3A of the SCA 1948, the Chief Justice may issue any direction relating to the business of the Subordinate Courts as may be necessary.
Under the new Section 3(7) of SCRA 1955, the Chief Justice may modify any provision of the rules of court or suspend the application of such rules of court as is necessary for doing complete justice in any cause or matter pending before the Courts and to ensure that the administration of justice is carried out.
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