During the bull market that followed the recovery from the 2008 financial crisis, we saw robust and sustained merger and acquisition (M&A) activity. Acquisitive companies pursued target businesses with strong balance sheets and bright growth prospects. Acquirers and targets became accustomed to broad rules of the road that guided M&A valuation, structure and process and informed transaction risk and reward. The coronavirus pandemic and its resulting economic dislocation will upend many of those rules. Read more…
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.
By Sydney Warshaw, from our Business Law Practice Group
June 4, 2020 — The Federal Department of Justice recently published the Time Limits and Other Periods Act (COVID-19) as a response to ongoing delays and complications in the wake of the COVID pandemic.
This draft legislation provides for automatic extensions to several federal deadlines. It also gives authorized ministers the powers to extend or suspend the time limits or periods in various federal acts and regulations.
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.
General considerations regarding Coronavirus (COVID-19) consequences on contracts under Mexican legislation.
Due to the crisis caused by COVID-19 and the different decrees and resolutions issued in connection thereto by the Mexican Federal Government, many doubts and questions have emerged regarding the effects this will have on contractual relationships among individuals.
Listed below are some relevant legal considerations regarding the enforceability of contractual obligations:
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.
The Federal Reserve has announced the creation of the Main Street Lending Program. The Program is intended to assist smaller and medium-sized businesses that were sound financially before the COVID-19 pandemic and that need financing alternatives. Businesses that were unable to access Payroll Protection Program (PPP) funding or require additional funding after receiving a PPP loan may also access the Program.
By Nicolas Pfister, from our Insurance Law Practice Group
A long-awaited moment has arrived, with the resumption of economic activity in certain sectors of activity considered non-essential. The Quebec Government’s policy is one of caution, and it is proposing a gradual opening plan that will be spread out over the summer. We wish to mention at the outset that this plan is subject to revision if the sanitary situation in Quebec is no longer under control.
Judgment: M/s Halliburton Offshore Services Inc. Vs. Vedanta Limited & Anr. [O.M.P. (I) (COMM) 88/2020 & I.A. 3697/2020]
Forum: Hon’ble High Court of Delhi (“Court”)
Judgment delivered on: April 20, 2020
Act/Law: Arbitration and Conciliation Act, 1996 (“Act”).
Ratio: Special equities in order to prevent irretrievable harm or injustice is a ground for injuncting invocation/encashment of bank guarantee.
By Sharon G. Druker, from our Business Law Practice Group
April 30, 2020 — Federal corporations, non-profit organizations and cooperatives generally must file their annual returns and pay the annual fees within 60 days of the anniversary date of their creation. However, Corporations Canada has recently announced that all such entities whose anniversary date falls between February 1 and June 1, 2020 now have until September 30, 2020 to do so. Corporations created under a special act of Parliament and which would otherwise have to file between April 1 and June 1, 2020 now also have until September 30, 2020 to do so.