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An Act To Amend The Code Of Organization And Civil Procedure, Civil Code And Various Laws Relating To The Lease Of Immovable Property (Bill No. 36)

A Bill entitled

An Act to amend the Code of Organization and Civil Procedure, Civil Code and various laws relating to the lease of immovable property

BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same as follows:-

1. (1) The short title of this Act is the Various Laws (Civil

Matters) (Amendment No.2) Act, 2009.
(2) The provisions of this Act shall come into force on such a date as the Minister responsible for justice may by notice in the Gazette establish, and different dates may be so established for different provisions or different purposes of this Act.

PART I

Short title.

2. This Part of this Act amends the Code of Organization and Civil Procedure and it shall be read and construed as one with the Code of Organization and Civil Procedure, hereinafter in this Part referred as "the Code".

3. Immediately after the proviso to article 285(1) there shall be added the following new proviso:

Amends the Code of Organization and Civil Procedure. Cap. 12.

Amends article

285 of the Code.

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Cap. 345.

Cap. 204.

"Provided further that, in respect of any shares or securities registered at a central securities depository, as defined in terms of article 2 of the Financial Markets Act, a warrant of seizure shall also be served on such central securities depository and shall take effect only if no transfer order or netting affecting the said shares or securities shall have been entered in a securities settlement system, authorized in terms of article 34 of the Central Bank of Malta Act, prior to the service of the warrant to the depository.".

Amends article

420 of the Code.

4. Immediately after subarticle (2) of article 420 of the Code there shall be added the following new subarticle:

Cap. 452.

"(3) The competing creditors shall be ranked as follows:
(a) judicial costs incurred in the sale of any immovable and judicial costs incurred in the distribution of the proceeds;
(b) any claims by any employees in respect of the maximum as established by law of the current wage payable by the employer to such employees in terms of article 20 of the Employment and Industrial Relations Act;

Cap. 318.

(c) the claim of the Director General (Social Security) of the Commissioner of Inland Revenue of any amount due by way of any Class One or Class Two contribution under article 116(3) of the Social Security Act;

Cap. 372.

(d) the claim of the Commissioner of Inland Revenue of any amount by way of tax deducted from income (P.A.Y.E.) in terms of article 23(11) of the Income Tax Management Act;
C 1295

Cap. 406.

(e) the claim of the Commissioner of Value Added Tax in terms of article 59(2) of the Value Added Tax Act;
(f) any other fiscal claim where the law provides that such claims shall rank in preference to all other claims notwithstanding the provision of any other law;
(e) any privileges and hypothecs registered in the Public Registry or the Land Registry as the case may be;
(f) any other claim:
Provided that where the assets of the bankrupt include objects over which taxes on importation have not been paid, the Comptroller of Customs shall be notified and any claim made by him for such taxes on importation shall rank prior to the other creditors.".

PART II

5. This Part of this Act amends the Civil Code and it shall be read and construed as one with the Civil Code, hereinafter in this Part referred to as "the Code".

6. Immediately after article 1359 of the Code there shall be inserted the following new proviso:

"Provided that in the case where an earnest has been paid on a promise of sale on immovable property, the party claiming the payment in accordance with this article, as the case may be, shall, without the need of any other action or any other formality, before the expiration of the stipulated period of the promise of sale, notify the other party for the payment of the relative earnest.".

7. In article 1531B of the Code for the words ", 1531L of this Code shall apply" there shall be substituted the words "of this Code shall apply".

8. Article 1531C of the Code shall be amended as follows:

(a) in sub-article (1) thereof, for the words "the rate of

Amends the Civil Code. Cap. 16.

Amends article

1359 of the

Code.

Amends article

1531B of the

Code.

Amends article

1531C of the

Code.

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the rent from 1st January, 2010" there shall be substituted the words "the rate of the rent as from the first payment of rent due after the 1st January, 2010"; and

Amends article

1531D of the

Code.

Amends article

1531E of the

Code.

Amends article

1531M of the

Code.

Amends article

1540 of the

Code.

(b) in sub-article (2) thereof for the words "on the 1st January 2013" there shall be substituted the words "on the date of the first payment of rent due after the 1st January, 2013".

9. Article 1531D of the Code shall be amended as follows: (1) in sub-article (1) thereof:

(a) for the words "shall on the 1st January,
2010 be increased" there shall be substituted the words "shall as from the date of the first payment of rent due after the 1st January, 2010 be increased"; and
(b) for the words "on the 1st June of each year" there shall be substituted the words "as from the date of the first payment of rent due after the 1st January of each year".
(2) in sub-article (2) thereof:
(a) for the words "The rent as at 1st January,
2014" there shall be substituted the words "The rent as from the first payment of rent due after the 1st January,
2014"; and
(b) the words "1st June, 2013" shall be substituted by the words "the first payment of rent due after the 1st January, 2014".

10. In article 1531E of the Code the words "of the lease which would have taken place prior to 1st January, 2010" shall be substituted by the words "of a tenement leased prior to 1st January,

2010".

11. In article 1531M of the Code immediately after the words "relating to clubs" there shall be inserted the words "and subject to the provisions of article 1531H with regard to garages and summer residences".

12. In the English version only of sub-article (2) of article

1540 of the Code for the words "excluding building" there shall be substituted the words "excluding, in the case of buildings,".
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PART III

13. This Part of this Act amends the Housing (Decontrol) Ordinance and it shall be read and construed as one with the Housing (Decontrol) Ordinance, hereinafter in this Part referred to as "the Ordinance".

14. Article 11 of the Ordinance shall be repealed: provided that the said repeal shall not affect anything done or any proceedings pending in respect of anything done prior to the said repeal.

15. Immediately after sub-paragraph (i) of sub-article (2) of article 12 of the Ordinance there shall be added the following new sub-paragraph:

"(ia) subject to the conditions laid down in sub-article
5(3)(b); and".

16. In sub-article (2) of article 12A of the Ordinance the words "according to article 12(2)(i) and (ii)" shall be substituted with the words "according to article 12(2) (i), (ia) and (ii)".

PART IV

Amends the Housing (Decontrol) Ordinance. Cap. 158

Deletes article

11 of the

Ordinance.

Amends article

12 of the

Ordinance.

Amends article

12A of the

Ordinance.

17. This Part of this Act amends the Civil Code (Amendment) Act, 2009 and it shall be read and construed as one with the said Act, hereinafter in this Part referred to as "the amending Act".

18. Article 39 of the amending Act shall be amended as follows:

(l) immediately after sub-article (4) thereof shall be added the following new sub-article:

Amends

Act X of 2009.

Amends article

39 the amending

Act.

Cap. 158

Cap. 16

"(4A) As from the first payment of rent due after the 1st January, 2010 the increase in rent on the ground of inflation of dwelling houses which are subject to a lease created by article 5,
12 or 12A of the Housing (Decontrol)
Ordinance shall, notwithstanding the provisions of articles 5(3)(c) and
12(2)(i) of the said Ordinance be
regulated exclusively by article 1531C
of the Civil Code".
(2) In sub-article (7) thereof the words "the renewal of a lease after the 1st June, 1995 or after that date" shall be
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substituted with the words "the renewal of a lease after the 1st June, 1995" and the words "shall not be considered as a lease agreed on the 1st January, 2010 or after that date." shall be substituted with the words "shall not be considered as a lease agreed on the 1st January, 2010 or after that date:" And immediately thereafter shall be added the following new proviso:

Cap. 158.

"Provided that for the avoidance of doubt, in this sub-article and in article 16 of the Housing (Decontrol) Ordinance, as the case may be, the words "the renewal of a lease after the 1st June, 1995" shall be construed as referring only to a lease commenced before the 1st June, 1995, and renewed after the said date, and the words “the renewal of a lease on the 1st January,
2010 or after that date" shall be construed as referring only to a lease commenced before the 1st January, 2010 and renewed after that date".

PART V

Amendment to the Reletting of Urban Property (Regulation) Ordinance.

Cap. 69

19. This Part of this Act amends the Reletting of Urban Property (Regulation) Ordinance and shall be read and construed as one with the Reletting of Urban Property (Regulation) Ordinance, hereinafter in this Part referred to as "the Ordinance".

20. In the definition of the expression "the Board" in article 2 of the Ordinance the words " "the Board" means" shall be substituted by the words " "the Board" and "the Rent Board mean" ".

Objects and Reasons

The main object and reason of this Bill is the clarification and further reform of the laws relating to the lease of immovable property.