Asia Pacific

Can Every Breach or Non-Performance be Justified or Excused on Invocation of COVID-19 as a Force Majeure: Delhi High Court Verdict

COVID-19 has caused tremendous economic loss, delays in project completion, missing of targets and milestones and potential breaches and disputes among contracting parties. Recently, in the matter of Halliburton Offshore Services Inc. vs Vedanta Limited & Anr. [O.M.P (I) (COMM.) No. 88/2020 & I.As. 3696-3697/2020], a petition seeking inter alia restrain on invocation of the bank guarantees issued in favour of the Respondent, the Hon’ble High Court of Delhi considered the issue of invocation of COVID-19 as a Force Majeure condition and held that “Every breach or non-performance cannot be justified or excused merely on the invocation of COVID-19 as a Force Majeure condition”. The Court further observed that it would have to take into consideration various factors to assess whether a party is genuinely prevented or justified in its non-performance due to the epidemic/pandemic.

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Temporary Layoffs during the COVID-19 Crisis – Updated

Companies have asked “Can an employer do temporary layoffs?” and want the answer in a short, summary format – and the ILN has answered – 17 member jurisdictions have weighed in with concise responses to help guide your business in the current crisis.

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CAN SUSUPENSION OF RENT DUE TO LOCKDOWN BE CLAIMED BY A LESSEE?

Judgment: Ramanand & Ors. Vs. Dr. Girish Soni & Anr. [CM APPL. 10847/2020]

Forum: Hon’ble High Court of Delhi (“DHC”)

Judgment delivered on: May 21, 2020

Act/LawIndian Contract Act, 1872 (“ICA”) and Transfer of Property Act, 1882 (“TPA”)

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Temporary Layoffs during the COVID-19 Crisis

Companies have asked “Can an employer do temporary layoffs?” and want the answer in a short, summary format – and the ILN has answered – 14 member jurisdictions have weighed in with concise responses to help guide your business in the current crisis.

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Changes in MSME Act under Economic Package announced by Union FM

Prime Minister Shri Narendra Modi announced Rs 20 lakh crore fiscal stimulus equivalent to 10 per cent of India’s GDP to deal with COVID-19 situation in the country, the Union Finance Minister Nirmala Sitharaman announced the following changes in the MSME sector to promote the motto of Self Reliant India and boost the economic status of the Country.

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Key takeaways from the Economic Package announced by Union FM

Prime Minister Shri Narendra Modi announced Rs 20 lakh crore fiscal stimulus equivalent to 10 per cent of India’s GDP to deal with COVID-19 situation in the country, the Union Finance Minister Nirmala Sitharaman announced the following changes in the various other sectors to promote the motto of Self Reliant India and boost the economic status of the Country.

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Changes in IBC under Economic Package announced by Union FM

Prime Minister Shri Narendra Modi announced Rs 20 lakh crore fiscal stimulus equivalent to 10 per cent of India’s GDP to deal with COVID-19 situation in the country, the Union Finance Minister Nirmala Sitharaman announced the following changes in the Insolvency Bankruptcy Code (“IBC”) sector to promote the motto of Self Reliant India and boost the economic status of the Country.

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FDI changes in Defence Sector under Economic Package announced by Union FM

Prime Minister Shri Narendra Modi announced Rs 20 lakh crore fiscal stimulus equivalent to 10 per cent of India’s GDP to deal with COVID-19 situation in the country, the Union Finance Minister Nirmala Sitharaman announced the following changes in the Defence Sector to promote the motto of Self Reliant India and boost the economic status of the Country.

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Amendments under Companies Act in Economic Package announced by Union FM

Prime Minister Shri Narendra Modi announced Rs 20 lakh crore fiscal stimulus equivalent to 10 per cent of India’s GDP to deal with COVID-19 situation in the country, the Union Finance Minister Nirmala Sitharaman announced the following amendments in the Companies Act 2013, to promote the motto of Self Reliant India and boost the economic status of the Country.

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ECONOMIC RELIEF PACKAGE UPDATE

To uplift the economic gloom, the Government has laid out a detailed road map towards building a self-reliant India (Aatma Nirbhar Baharat Abhiyan), with five key pillars identified as Economy, Infrastructure, System, Vibrant Demography and Demand (refer our newsletter of May 14, 2020 at https://lexcounsel.in/wp-content/uploads/2020/05/Newsletter-May-14-2020.pdf). As part of the package, the Finance Minister of India unveiled the first tranche of the economic relief package on May 13, 2020. Under the first tranche of the economic relief package, the Ministry of Finance has focused on Micro, Small and Medium Enterprises (“MSME”), Non-Banking Financial Companies (“NBFC”), Housing Finance Companies (“HFC”) and Micro Finance Institutions (“MFI’), DISCOM’s and Real Estate.

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