5 MPs propose reduction of rent by 60% for 6 months during economic crisis
KUWAIT, June 8 : MPS Ahmed al-Fadl, Safa al-Hashem, Nasser al-Dossari, Khalaf Dumither, and Khaled al-Shatti presented a proposal with a law for leasing during emergency conditions, and its articles stipulated the following:
First Article: The emergency conditions applied in the provisions of this law are defined as natural disasters, wars, epidemics or general economic crises with which the Council of Ministers takes measures that cause disruption in commercial or industrial activity or any economic or professional investment activities or any facilities affected by these decisions.
Second Article: The rent is reduced according to this law by 60% for the period of the following six months. As due to emergency conditions it has impacted the income from the day the emergency conditions has been implemented.
In all cases, the property owner may not obligate the tenant to vacate the leased property after the occurrence of emergency conditions and throughout the period of the year prescribed for exemption and the reduction of rent, as well as if the effect continued according to decisions issued by the Council of Ministers for a longer period that prevents the use of the leased property.
In the event that the rent is paid in advance or the investor is obliged to pay it during the emergency conditions, he will be compensated by a similar period without the payment due.
Article Three: The provision of this law applies to every investor with natural or legal persons or state property contracts, whether they are with the Ministry of Finance or any of the ministries, bodies or institutions of the independent or affiliated state or companies wholly owned by the state or in which the state owns more than 51% If the contracts are related to other tenants who represent a third party who benefit from the rented property and are covered by the provisions of this law and the contract permits them to lease to others, provided that the investor is not in default in paying the rental dues from the investment before the emergency circumstances.
Fourth Article: A department shall be established in the court that specializes in requests for reducing the rents due, due to the failure of the commercial activity and its impact on the consequences of the emergency conditions referred to in accordance with the first article of this law. Judgments may be appealed and challenged with discrimination, and this does not preclude the contractor’s obligation to pay the rents due until the process of judgment is final.
The court does not have jurisdiction over contracts concluded to benefit from state property.
Fifth Article: Any text in any other law shall have no effect on the obstruction of the enforcement of the provisions of this law.