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ARTICLE · 17 SEPTEMBER 2020

Force Majeure: Impact On Leave And License Agreements

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The on-going COVID-19 pandemic which has resulted in the lockdown of all the states and its machinery has given rise to the recognition of the event as a ‘force majeure' event.

IndiaCoronavirus (COVID-19)
Rahul Jain
Rahul Jain
Khushboo Rupani
Khushboo Rupani
Mahafrin Mehta
Mahafrin Mehta
Asiya Khan
Asiya Khan
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The on-going COVID-19 pandemic which has resulted in the lockdown of all the states and its machinery has given rise to the recognition of the event as a ‘force majeure' event. Even the Government of India has recognized it as being covered under the term ‘Natural Calamity' as provided in Force Majeure clause incorporated in its Manual for Procurement of Goods, 2017 and thus it is irrevocable.

One of the worst affected sectors is the Real Estate sector specifically in context with the leave and licenses agreement (LLA) for both residential and commercial. A lot of licensees are either people working in white and blue-collar jobs (being affected to the extent that they are being asked to take a full pay cut or no salary or furloughed or terminated or benched) or are start-up business/business running into losses (on account of statutory restriction put on by Government of India or State Government, as the case may be). This has in turn drastically effected the

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