Singapore legislation
Schedule 5
Schedule 5
MORATORIUM
FIFTH SCHEDULESections 44, 78(1) and 79MORATORIUMPart 1PERIOD OF MORATORIUM1. The period of moratorium applicable to any person served with a notice of negotiation —
begins on the day on which the notice of negotiation is served on the person in accordance with section 45; and
ends, subject to paragraph 2, on the earliest of the following:
where only the notice of negotiation, and no other notice under Division 2 or 3 of Part 10, is served and lodged under that Division — the expiry of 8 weeks after the notice of negotiation is served on the person in accordance with section 45;
after the expiry of the period mentioned in sub‑paragraph (i) —
the day on which the notice of negotiation is withdrawn in accordance with section 48;
where a notice of objection served and lodged under section 46 is withdrawn under section 48(3), and the adjustment relief Registrar determines that no adjustment relief assessor needs to be appointed under section 65(2) — the day on which the adjustment relief Registrar makes the determination;
where the adjustment relief Registrar refuses to accept any notice of objection for lodgment pursuant to section 46(3) and determines that no adjustment relief assessor needs to be appointed under section 65(2) — the day on which the adjustment relief Registrar makes the determination;
where only one notice for adjustment is served and lodged under section 47, and that notice is withdrawn under section 48(4) — the day on which that notice is withdrawn;
where more than one notice for adjustment is served and lodged under section 47, and every such notice is withdrawn under section 48(4) — the day on which the last subsisting notice for adjustment is withdrawn;
where a notice for compensation served and lodged under section 51 is withdrawn under section 52, and no notice of objection and no notice for adjustment have been served and lodged under Division 2 of Part 10 — the day on which the notice for compensation is withdrawn;
the day on which an adjustment relief assessor has made all the determinations required to be made in relation to the notice of negotiation.
2. Despite paragraph 1(b), the period of moratorium applicable to any person served with the notice of negotiation, in relation to a specified contract, ends on the day on which a certificate certifying that the specified contract is a contract of national interest is issued under section 60.
3. The period of moratorium applicable to any person served with a notice of revision —
begins on the day on which the notice of revision is served on the person in accordance with section 53; and
ends on the earliest of the following:
where no notice of objection is served and lodged under section 54 — the expiry of 6 weeks after the notice of revision is served on the person in accordance with section 53;
where a notice of objection served and lodged under section 54 is withdrawn under section 55 after the expiry of the period mentioned in sub‑paragraph (i) — the day on which the notice is withdrawn;
the day on which an adjustment relief assessor has made all the determinations required to be made in relation to the notice of revision.Part 2ACTIONS AND PROCEEDINGS THAT MUST NOT BE TAKEN, ETC.
1. Despite any law or anything in the contract, a person must not, during the applicable moratorium period mentioned in Part 1, take any of the actions described in paragraph 2 in relation to —
if the person is served with a notice of negotiation in relation to a specified contract —
any failure to perform any obligation under the specified contract by any other party during the applicable moratorium period mentioned in Part 1 (called in this Part the subsequent failure); and
if the specified contract is terminated under any other written law or rule of law mentioned in section 43(6) — any expense or loss incurred or suffered by the person, in relation to the period of the specified contract after the date of termination, as a consequence of any breach of the specified contract by any other party to the specified contract (called in this Part the future loss); and
if the person is served with a notice of revision in relation to a specified contract (being a contract mentioned in paragraph 1(b) of Part 1 of the Second Schedule) — the non-payment of any amount mentioned in section 53(4)(a) or any interest or other charge (however described) on that amount (called in this Part the accrued arrears).
2. The actions mentioned in paragraph 1 are —
the commencement or continuation of an action in a court against the other party or the other party’s guarantor or surety (including by amending the pleadings for any such action already commenced to include the subsequent failure in the action or claim for the future loss or accrued arrears);
the commencement or continuation of any arbitral proceedings under the Arbitration Act (Cap. 10) against the other party or the other party’s guarantor or surety (including by amending the pleadings for any such proceedings already commenced to include the subsequent failure in the proceedings or claim for the future loss or accrued arrears);
the enforcement of any security over any immovable property;
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 a call on a performance bond or equivalent given pursuant to the specified contract at any time earlier than 7 days before —
the date of expiry of the performance bond or equivalent as stated in the performance bond or equivalent; or
where the term of the performance bond or equivalent is extended under paragraph 4 or otherwise — the date of expiry of the performance bond or equivalent following such extension;
the making of an application under section 210(1) of the Companies Act for a meeting of creditors to be summoned to approve a compromise or an arrangement in relation to the other party or the other party’s guarantor or surety;
the making of an application for a judicial management order in relation to the other party or the other party’s guarantor or surety;
the making of an application for the winding up of the other party or the other party’s guarantor or surety;
the making of a bankruptcy application against the other party or the other party’s guarantor or surety;
the appointment of a receiver or manager over any property or undertaking of the other party or the other party’s guarantor or surety;
the commencement or levying of execution, distress or other legal process against any property of the other party or the other party’s guarantor or surety, except with the leave of the court and subject to such terms as the court imposes;
the repossession of any goods used for the purpose of a trade, business or profession, under the specified contract (being a contract mentioned in paragraph 1(b) of Part 1 of the Second Schedule); Example A motor car used as a private hire car, that is the subject of a hire‑purchase agreement.(m)in relation to a subsequent failure or any accrued arrears —
the termination of the specified contract; or
the exercise of a right of re‑entry or forfeiture under the specified contract (being a contract mentioned in paragraph 1(a) of Part 1 of the Second Schedule), or the exercise of any other right that has a similar outcome; (n)the enforcement against the other party or the other party’s guarantor or surety of a judgment of a court, or an award made by an arbitral tribunal in arbitral proceedings conducted under the Arbitration Act; and
such other action as may be prescribed.
3. For the purposes of paragraph 2(a) or (b), where the action or proceedings relate to the subsequent failure, future loss or accrued arrears and any other matter, that provision does not apply to the part of the action or proceedings relating to that other matter.
4. For the purposes of paragraph 2(e) and despite anything in a performance bond or equivalent given pursuant to the specified contract, where —
the other party makes an application to the issuer of the performance bond or equivalent not less than 7 days before the date of expiry of the performance bond or equivalent, to extend the term of the performance bond or equivalent; and
the other party serves a notice of the application on the person mentioned in paragraph 1 at the same time,then the term of the performance bond or equivalent is extended to a date that is 7 days after the end of the applicable moratorium period mentioned in Part 1, or such other date as may be agreed between the other party, the person mentioned in paragraph 1 and the issuer, and that date or other date (as the case may be) is treated as the date of expiry of the performance bond or equivalent.
5. Any period of limitation prescribed by any law or in any contract for the taking of any action or proceedings in relation to the subsequent failure, future loss or accrued arrears is extended by a period equal to the applicable moratorium period mentioned in Part 1.
6. Any of the following, namely:
proceedings before a court;
arbitral proceedings under the Arbitration Act;
such other proceedings as may be prescribed,in relation to the future loss that are pending on the first day of the applicable moratorium period mentioned in Part 1, must be stayed on the lodgment by the other party of a copy of the notice of negotiation with the court, arbitral tribunal, or other person or body before which the action or proceedings are brought, until the expiry of the applicable moratorium period mentioned in Part 1.
7. Any of the following, namely:
proceedings before a court;
arbitral proceedings under the Arbitration Act;
such other proceedings as may be prescribed,in relation to the accrued arrears that are pending on the first day of the applicable moratorium period mentioned in Part 1, must be stayed on the lodgment by the other party of a copy of the notice of revision with the court, arbitral tribunal, or other person or body before which the action or proceedings are brought, until the expiry of the applicable moratorium period mentioned in Part 1.
8. For the purposes of the winding up of the other party or the other party’s guarantor or surety, and despite anything in any law, each of the following periods is extended by a period equal to the applicable moratorium period mentioned in Part 1:
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);
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);
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).
9. For the purposes of a judicial management of the other party or the other party’s guarantor or surety, and despite anything in any law, each of the periods in the following provisions is extended by a period equal to the applicable moratorium period mentioned in Part 1: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.
10. For the purposes of the bankruptcy of the other party or the other party’s guarantor or surety, and despite anything in any law, each of the periods in the following provisions is extended by a period equal to the applicable moratorium period mentioned in Part 1:Sections 363(1)(a), (b) and (c) and 366(2) of the Insolvency, Restructuring and Dissolution Act 2018.
11. Regulations may be made under section 79 for any of the following:
to extend any period specified in any other written law governing any other entity or matter that corresponds to any provision mentioned in paragraph 8 or 9; (b)to prescribe the circumstances in which this Part does not apply.12.—
Without affecting section 44(2), any action or proceedings commenced in breach of paragraph 1 must, on the lodgment of a copy of the notice of negotiation or notice of revision (as the case may be) with the court, arbitral tribunal or other person or body before which the proceedings are brought, be dismissed to the extent of the breach.(2) Without affecting section 44(2), the enforcement of any security in breach of paragraph 1 is void except as against a bona fide purchaser for value without notice of the notice of negotiation or notice of revision, as the case may be.(3) Without affecting section 44(2), the following actions are void:
the appointment of a receiver or manager over any property or undertaking of a person made in breach of paragraph 1;
a call on a performance bond or equivalent made in breach of paragraph 1.(4) Each of the following actions taken in breach of paragraph 1 is invalid:
the repossession of any goods under a contract;
the termination of a contract;
the exercise of a right of re‑entry or forfeiture under a contract, or the exercise of any other right that has a similar outcome.”.