Parliament passes Bill to temporarily suspend parate action

The Recovery of Loans by Banks (Special Provisions) (Amendment) bill which was amended to facilitate legal provisions for the suspension of Parate Law till 15 December, 2024, passed in parliament without amendments.

The Bill endeavours to amend the Recovery of Loans by Banks (Special Provisions) Act No 4 of 1990.

The Supplement to the Act was dated 13 March 2024. The Bill aims to give legal effect to the following.

Clause 2: This clause amends the Recovery of Loans by Banks (Special Provisions) Act, No. 4 of 1990 by inserting immediately after section 4 of that Act, new section 4A and the legal effect as amended is to suspend, the selling of any property mortgaged to the bank as security for any loan in respect of which default has been made, by public auction during the period commencing on the date of commencement of section 4A and ending on 15 December, 2024.”