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Jonathan Abela FiorentinoLegal Update

Bona fide disputes and defining a creditor for the purposes of liquidation proceedings

In a decision delivered on the 13th March 2022, case no. 246/2018 ISB, the Civil Court (Commercial Section) placed the defendant company into liquidation on the ground that it was unable to pay its debts, after considering and concluding that the circumstances that had previously led the Court in the same case to determine the existence of a bona fide dispute and consequently suspend the hearing of the liquidation proceedings, no longer existed. The circumstances referred to consisted of proceedings instituted by defendant company in The Netherlands against the company demanding its liquidation in Malta ('the applicant company') as well…
Litigation & Dispute Resolution

Court of Appeal Confirms that in pre-1995 Commercial Leases, if the Parties Agreed on Periodic Rent Increases, Such Increases are to Prevail over the Increases Contemplated in Article 1531D (1) and (2) of the Civil Code.

​On the 5th November 2021, the Court of Appeal (Inferior Jurisdiction) delivered a judgment confirming a decision of the Rent Regulation Board in the case bearing reference number 29/2019/1 LM.The appellant is the owner of a commercial premises which is leased to the appealed party. The appellant acquired the premises in 2017 together with the lease which was already in place in favour of the appealed party. The appealed party had acquired the lease in 2004 by means of an agreement which established that the rent due amounted to LM 600 per year, which amount was to be paid every…
Jonathan Abela Fiorentino
19th November 2021
Litigation & Dispute Resolution

Business Mediation – Why Opt for Mediation in Business

Business owners cannot afford continued contention, especially in highly competitive markets where effective communication is key.Whilst conflict cannot be avoided, it is an acknowledged fact that litigation provokes hostility. On the other hand, mediation fosters cooperation and respect. Traditionally, the process commonly resorted to for resolving conflict and disputes is litigation, which diverts attention and resources from achieving targeted commercial goals towards a lengthy and costly litigation process. Mediation provides a voluntary solution to this conundrum with the trend shifting away from court litigation to alternative methods of dispute resolution, including mediation, due to its clear advantages.Mediation can be resorted…
Litigation & Dispute Resolution

Sub-Letting of commercial tenements after 31st May 2018 – let it be! – (2)

Reference is made to our previous article entitled 'Sub-Letting of Commercial Tenements After 31st May 2018 – Let it Be!', which dealt with the (then) proposed amendments to article 1613 of the Civil Code. In that article, we gave an overview of the salient provisions contained in the Bill which was being discussed in Parliament. Following the debate in Parliament on the Bill presented by the Government and following various interventions in the debate, the Bill remained unchanged and the amendments were subsequently introduced by means of Act VIII of 2018. The salient amendments introduced can be reviewed in the…
Litigation & Dispute Resolution

Sub-Letting of commercial tenements after 31st May 2018 – let it be! – (2)

Reference is made to our previous article entitled 'Sub-Letting of Commercial Tenements After 31st May 2018 – Let it Be!', which dealt with the (then) proposed amendments to article 1613 of the Civil Code. In that article, we gave an overview of the salient provisions contained in the Bill which was being discussed in Parliament. Following the debate in Parliament on the Bill presented by the Government and following various interventions in the debate, the Bill remained unchanged and the amendments were subsequently introduced by means of Act VIII of 2018. The salient amendments introduced can be reviewed in the…
Litigation & Dispute Resolution

Sub-Letting of Commercial Tenements After 31st May 2018 – Let it Be!

In terms of article 1531I of the Civil Code, as introduced by the amendments to the rent laws in 2009, a lease of commercial premises made before the 1st June 1995 shall terminate on 31st May 2028, unless a specific period has been stipulated in a contract and subject to the other specific provisions contained in this provision as may be applicable in a given case.In the case of sub-letting of commercial tenements made before the 1st June 1995, these shall terminate on 31st May 2018. This cut-off date does not apply if the sub-lease was made by agreement with…