No Entitlement For Claiming Force Majeure Relief During COVID-19

The outbreak of COVID-19 has been declared as a pandemic by the World Health Organisation as a result of which domestic and international trade has come to a slowdown affecting variety of commercial contracts.  The Government of India, vide an office memorandum dated 19^th  February, 2020¹, clarified that the disruption of the supply chains due to spread of coronavirus in China or any other country should be considered as a case of natural calamity and "force majeure clause" may be invoked, wherever considered appropriate, following the due procedure.

Consequently, it is important to analyse "force majeure" clause in commercial contracts and whether companies can involve force majeure clause not to perform its contractual obligations without any penalty accruing.