Supreme Court: Air Force Group Insurance Society qualifies as ‘State’ under Article 12  ||  SC: Anganwadi Workers With Degrees Are Eligible For The 29% Quota For Supervisors in Kerala  ||  SC: Giving Accused the Option of Search Before a Police Officer Breaches Section 50 of the NDPS Act  ||  Gujarat HC: Person is Entitled to Compensation For Injury or Death Within Railway Station Premises  ||  Delhi HC: PMLA Can Apply Even if the Scheduled Offence Occurred Before the Law Came Into Force  ||  J&K&L HC: Accused Can Admit Evidence Recorded under Section 299 Crpc After Appearing in Court  ||  J&K&L HC: District Judge Serving as Reference Court under Land Acquisition Act Acts as a Civil Court  ||  Del HC: Subsequent Bail Pleas From Same FIR Should Usually Go Before the Judge Who Denied the First  ||  J&K&L HC: Vaishno Devi Shrine Board, Despite Statutory Status, is Not a ‘State’ under Article 12  ||  SC: Confirmation of an Auction Sale Does Not Bar Judicial Scrutiny of Reserve Price Valuation    

R.Narayanan Vs. The Government of Tamil Nadu and Ors. - (High Court of Madras) (05 Feb 2021)

Despite the stipulation of absolute performance casted upon the licensee, lockdown shall be treated as a force majeure event for performance of obligation under the contract.

MANU/TN/0330/2021

Contract

Petitioner a successful bidder and licensee of one of the shops of the respondent had paid one year advance license fee to the respondent. Following the outbreak of COVID-19, the petitioner has suffered considerable financial loss due to which the petitioner did not get his license renewed even though there was a clause providing for it. The petitioner filed a petition demanding waiver of the license fee for the lockdown period and partial waiver of subsequent period.

The issue in the instant case was whether notwithstanding the stipulation of absolute performance casted upon the licensee, this court would be justified in treating the lockdown as a force majeure event which will relieve the licensee from performing his obligations to the corresponding event.

The court observed that although the license agreement between the petitioner and the respondents did not have an express ‘force majeure’ clause, the COVID-19 pandemic has to be treated as a force majeure event. Since, the local body itself directed the shutting down of the bus stand and the shops, it cannot demand license fee during the period when the shop remained close.

The court criticized the order on the recommendation of Commissioner of Municipal Administration to grant two months waiver of license fee on account of lockdown as it would have been made without considering the fact that the lockdown was further extended.Hence, the court while allowing the writ petition directed the complete waiver of license fee from March 24 to September 6, 2020.

Tags : FORCE MAJEURE   LOCKDOWN  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved