Executive Summary Do force majeure events, like the current lockdown and Covid-19 pandemic, legally excuse performance of contractual obligations in India? Based on past decisions of the Indian Supreme Court, the law in India can be summarised as follows. • Under the Indian Contract Act, 1872 if a contract expressly or impliedly contains a force […]
Introduction: As we continue to witness the impact of the COVID-19 outbreak on Indian as well as international trade and commerce, particularly in light of the uncertainty surrounding the ability of businesses to a) raise fresh debt in the wake of cautious institutional lending sentiment; and b) service existing debt obligations due to temporary suspension […]
Frustration of Contracts A frustrated contract is a contract that, subsequent to its formation, and without fault of either party, becomes impossible to perform in the manner that was contemplated by the parties to the contract. In other words, ‘frustration of contract’ occurs whenever, without default of either party, a contractual obligation becomes incapable of being performed because the circumstances in which performance is […]
Authors Siddhartha Das, Managing Associate and Akshit Kapoor, Managing Associate The unprecedented outbreak of the Novel Coronavirus Disease (COVID-19) across the globe has made compliance and performance of contracts impracticable and in many situations impossible. 1. General The term ‘Force Majeure’ means an event or effect that can be neither anticipated nor controlled and in common parlance […]
Judgment: Power Mech Projects Limited Vs. SEPCO Electric Power Construction Corporation [O.M.P. (I) (COMM.) 523/2017], Forum: Hon’ble High Court of Delhi (“Court”) Judgment delivered on: February 17, 2020 Act/Law: Arbitration and Conciliation Act, 1996 (“Act”). Ratio: In appropriate circumstances, the Court can direct the deposit of the entire sum awarded under the arbitral award before […]
Corona Virus (COVID 19) has engulfed the world into an unprecedented crisis forcing most of the countries to enforce a lockdown on the movement of persons which appears to be the only option to control and contain spread of this dreaded virus. Around 211 countries and areas are experiencing the cases of COVID-19, with around […]
On account of COVID – 19 being declared a worldwide pandemic by the World Health Organization, several countries have taken a slew of drastic measures to combat the spread of the virus. The alarming rise in the number of cases in India actioned the Central Government into implementing a nationwide lock-down. Further, taking cognizance of […]
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To ease the impact of disruption caused by the Coronavirus/COVID-19 pandemic, the Reserve Bank of India (“RBI”) has provided extension of the period for realisation of the export proceeds as prescribed under the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015 (“FEM Export Regulations”) read with the RBI Master Direction on Export of […]
RBI introduces ‘Fully Accessible Route’ for Investment by non-residents in Government Securities On 30 March 2020, RBI issued two circulars, viz. (i) circular bearing number RBI/2019-2020/199 A.P.(DIR Series) Circular No. 24 (“Circular 24/2020”) which has revised the limit for FPI investments in corporate bonds and clarified on the applicability of investment limits in Central Government […]
As the Covid-19 pandemic spreads, countries have moved rapidly to manage its impact. On March 24, 2020, India announced a nation-wide, 21-day lockdown to deal with the crisis. The lockdown, which went into effect from 12:00 am on March 25, was authorized under India’s Disaster Management Act, 2005 (DMA). 1 The lockdown closed all private […]
In furtherance of its previous corporate governance reliefs, the Ministry of Corporate Affairs (“MCA”) has introduced the Companies Fresh Start Scheme, 2020 (“CFS Scheme”) and amended the LLP Settlement Scheme, 2020 vide its circular dated March 30, 2020 (“LLP Modified Scheme”) to allow defaulting companies and limited liability partnerships (“LLPs”) an opportunity to file belated […]