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Covid-19| Courts may be saddled with surge in force majeure disputes after lockdown

The backlog of cases and rise of new cases relating to force majeure may overwhelm the Indian Court system

April 23, 2020 / 04:05 PM IST

By Tejas Karia

As India enters the second phase of lockdown due to global outbreak of COVID-19, the performance on contracts amid this crisis have been seriously impacted. This has a potential of increase in contractual disputes due to invocation of Force Majeure provisions under the contract.

Force majeure suspends the performance of contractual obligations temporarily during the event as expressly provided that is beyond the reasonable control of the affected party.

To determine if COVID-19 would be covered as the force majeure event, language of the definition in the contract would play a vital role. If the definition is inclusive, it would include COVID -19 pandemic provided events similar to that are specified.