SMALL CLAIMS TRIBUNALS (AMENDMENT) BILL

Column No : 1829

SMALL CLAIMS TRIBUNALS (AMENDMENT) BILL: Order for Second Reading read.

3.18 pm

The Deputy Prime Minister and Minister for Law (Prof. S Jayakumar): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, this Bill amends the Small Claims Tribunals Act to expand the jurisdiction of the Small Claims Tribunal (SCT)and to require leave of court before an appeal can be made against an SCT order.

If I may explain, Sir, the SCT was established almost 20 years ago to provide a quick and inexpensive forum to resolve small claims between consumers and suppliers. We have been gradually expanding the jurisdiction of the SCT over the years. At present, the SCT deals with claims arising from contracts for the sale of goods or provision of services and claims for damage to property, excluding damage arising in connection with motor vehicle accidents. The claim limit is $10,000, but itcan be raised to $20,000 with the consent ofboth parties.

This Bill seeks to expand the jurisdiction of the SCT, to allow it to determine claims arising from short-term residential tenancy agreements not exceeding two years, which are normally straightforward and not complicated. This amendment will benefit both landlords and tenants, as it provides them with a speedy and cost effective means of resolving some of their disputes. Landlords seeking to recover unpaid rent within the small claims limit, as well astenants who have either rented an entire property or a single room in disputes over rent deposits, will now have aquicker and cheaper avenue to press these claims.The expanded jurisdiction only applies to residential properties. The SCT will not have the jurisdiction to hear disputes arising from leases of commercial properties, as such leases are likely to be quite technical and far more complicated.

Sir, with the expanded jurisdiction, the SCT will be empowered to deal with a wider range of disputes that consumers are likely to be involved in.

This Bill also amends the Small Claims Tribunals Act to require leave of court to proceed with an appeal against an order made by the SCT.

Sir, let me explain. At present, appeals against an SCT order can be made as of right to the High Court, but only on a question of law or on the ground that the claim was outside the jurisdiction of the SCT. The scope for an appeal is deliberately narrow, in order to promote finality, and to avoid highcosts in appealing that may exceed in fact the sums in dispute.

The Bill amends the Act to require the leave of the District Court before an appeal can be made against an SCT order. With this amendment, the position of appeals against SCT orders will be brought into alignment with appeals against decisions of a District Court or a Magistrate’s Court. The grounds for appeal will not be affected or further limited by this amendment, whose main effect is to ensure that the parties will not be put to unnecessary expense, for example, in cases where there is no prospect of an appeal succeeding.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Prof. S Jayakumar].

Bill considered in Committee; reported without amendment; read a Third time and passed.