Force Majeure And Commercial Lease

COVID-19, a pandemic is an unprecedented crisis which has spread across 209 countries and territories around the world. The Indian market has also suffered due to the pandemic and the lockdown enforced by the government to contain the pandemic. Due to lockdown imposed by the Central Government on March 24, 2020, businesses in India have faced huge losses. One of the markets which was also impacted by the pandemic is the real estate market for leasing commercial spaces.

Due to the pandemic the commercial leased spaces were not used by the lessees. The situation created by the pandemic forced the parties to revisit their contracts and understand the agreed position regarding payment of rent or termination of agreement under the ‘force majeure' provisions.