(1) This section has effect subject to the next succeeding section.
(2) A person shall not:
(a) except with the leave of the court by which the judgment was given, commence, proceed with or put in force any execution, or any other process or proceeding, to enforce any judgment against a national serviceman or a female dependant of a national serviceman where the judgment is in respect of the liability of the national serviceman or female dependant under a contract or agreement made before the date that is the moratorium date in relation to the national serviceman or female dependant or under any contract or agreement modifying, superseding, or in substitution for, any such contract or agreement; or
(b) except with the leave of the appropriate court, exercise any legal remedy in consequence of any default in the payment of a debt or the performance of an obligation by a national serviceman or a female dependant of a national serviceman, where the debt or obligation arose or arises under any such contract or agreement.
(3) Where, before the date on which a national serviceman commenced to render national service, a person has commenced, proceeded with or put into force any execution, or any other process or proceeding, to enforce a judgment against that national serviceman or a female dependant of that national serviceman in respect of a liability of the kind referred to in paragraph (a) of the last preceding subsection, and the execution, process or proceeding to enforce the judgment has not been completed at that date, the execution, process or proceeding is, by force of this subsection, suspended, unless and until the court by which the judgment was given gives leave to proceed with the execution, process or proceeding.
(4) Where a person has given a guarantee in relation to a contract or agreement to which subsection (2) of this section applies, a person shall not, except with the leave of the appropriate court, take any action for the enforcement of the guarantee.
(5) An application for the leave of a court under this section shall be made with notice to such persons as the court considers entitled to the notice, or ex parte in any case in which by reason of special circumstances the court considers that procedure to be just and equitable, and may be disposed of in chambers.
(6) In determining whether leave is to be granted under this section, the court shall consider:
(a) whether the failure to satisfy the judgment, pay the debt or perform the obligation was due to circumstances directly or indirectly attributable to the national service rendered by the national serviceman;
(b) the conduct of the national serviceman or female dependant in respect of any breach of the terms of the contract or agreement;
(c) whether the grant of leave would cause hardship to the national serviceman or female dependant; and
(d) whether refusal to grant leave would cause hardship to the applicant, or to some person towards whom, with respect to the judgment, contract or agreement, the applicant stands in the position of a trustee.
(7) If, having regard to the considerations mentioned in the last preceding subsection, and to all other relevant considerations, the court is of opinion that it is equitable so to do, it may:
(a) grant leave, either unconditionally or subject to such restrictions and conditions as the court thinks fit;
(b) refuse to grant leave;
(c) readjust the amounts of any instalments payable under the contract or agreement;
(d) postpone the time for payment of all or any such instalments in such manner and for such time as the court thinks just in the circumstances of the case; or
(e) modify the terms of any guarantee given in relation to the contract or agreement in such manner as the court thinks just in the circumstances of the case.
(8) If the court orders that the time for payment of any instalments be postponed:
(a) the court may direct that interest on the instalments be paid at such rate as it considers reasonable in the circumstances of the case; and
(b) the court shall order that the time for payment of all subsequent instalments be postponed in such manner as the court thinks fit.
(9) The court may exercise any of the powers conferred by paragraphs (c), (d) and (e) of subsection (7) of this section upon application made by or on behalf of the national serviceman or female dependant in the manner prescribed by subsection (5) of this section.
(10) The costs of an application under this section are in the discretion of the court.
(11) A settlement or agreement entered into by the parties after the making of an application for leave under this section is not valid unless approved by the court.
(12) In this section:
guarantee includes any agreement or security included in or collateral to a contract or agreement referred to in subsection (2) of this section under which a third person undertakes to be answerable for the due performance of that contract or agreement or for the making of any payment falling due under that contract or agreement.
judgment means any judgment or order of a court (whether given or made before or after the commencement of this Division) for the payment or recovery of a sum of money.
legal remedy means any remedy by way of:
(a) the levying of distress on, or the taking of possession of, any property, other than goods the seizure or taking possession of which is prohibited by section 30 of this Act;
(b) re‑entry upon any land;
(c) the realization of any security or the forfeiture of any deposit; or
(d) the rescission of any agreement for the sale and purchase of land.
(13) Subject to the next succeeding subsection, nothing in the preceding provisions of this section affects:
(a) any power or remedy of a mortgagee or vendor of land:
(i) that arose or arises from any default in the payment of interest under or by virtue of a mortgage or agreement to which section 20 of this Act applies; or
(ii) that is not affected by that section;
(b) any power to enforce a charge for rates on land;
(c) any power of sale of a mortgagee in possession of property, other than land or some interest in land, belonging to a national serviceman or a female dependant of a national serviceman, where the power of sale arose before the date on which the national serviceman commenced to render national service;
(d) any right or power of a pawnbroker to deal with pledges; or
(e) any proceedings relating to goods being purchased by a national serviceman or a female dependant of a national serviceman under a hire‑purchase agreement where the national serviceman or female dependant has purported to sell or otherwise dispose of the goods or has parted with the possession of the goods.
(14) Notwithstanding paragraph (b) of the last preceding subsection, an action, suit or other proceeding shall not be brought or taken to enforce a charge for rates on land while the land is subject to a mortgage or agreement to which Division 2 of this Part applies.