Parliament passes Coronavirus Disease 2019 (COVID-19) (Temporary Provisions) Bill

Parliament yesterday approved the Coronavirus Disease 2019 (COVID -19) (Temporary Provisions) Bill with amendments made in keeping with the opinion of the Supreme Court.

The bill provides relief to those affected by disruption caused by the pandemic such as inability to perform contractual obligations or exercise contractual rights as well as to conduct Court proceedings using remote communication technology. Under the provisions of the bill, which will be valid for a period of two years, the relief will cover those who have obtained loans from licensed banks or finance companies, where such facility is secured, wholly or partially, against any commercial or industrial immovable property or against any plant, machinery, or fixed asset used for manufacturing, production, or other business purposes. The relief provided by the bill will also apply to those who are in hire-purchase or lease agreements entered into to hire plant, machinery or fixed asset or commercial vehicles and to agreements between housing developers and a purchaser for the sale and purchase of one or more units of housing.

It also enables the Judicial Service Commission to designate the nearest court of concurrent jurisdiction as the alternative court in place of such court, for the period during which such COVID-19 situation exists.

The Bill was challenged in the Supreme Court on grounds that some of its provisions were inconsistent with the Constitution.

The SC in its determination held that clauses 2, 3, 4, 6, 7 and 10 together with the definition of “COVID-19 circumstance” in the clause 12 of the bill are inconsistent with Article 3 and 4(c) of the Constitution, and said the inconsistencies in the bill would cease if it were amended as opined by the Court and may then be passed with a simple majority in Parliament.