Force Majeure And The Impact Of Covid-19 On RERA Registered Projects

The Novel Coronavirus (COVID-19) has hit populations around the world and has resulted in many restrictions, including free movement of people. It has brought the world to a grinding halt and has severely impacted the ability of businesses throughout the world to fulfil contractual obligations and sustain operations.

The World Health Organization has declared COVID-19 a pandemic on 11th March 2020.¹

In light of this pandemic, it is important to understand the impact on performance of various contracts and statutory obligations and the applicability of the Force Majeure clauses.

Typically, a force majeure event is one which is an unavoidable event such as "act of God," notably weather conditions including hurricanes, floods, tornadoes, earthquakes, landslides, and wildfires, as well as certain man-made events like riots, wars, terrorism etc.