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ARTICLE · 08 JUNE 2022

Guidelines For Consideration Of ‘Force Majeure' In CGD Networks

ALAYA LEGAL ADVOCATES
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This write-up examines the efficacy of the ‘force majeure' provision under the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008.

IndiaGovernment, Public Sector
Kunal Lohani
Kunal Lohani
Praneet Kaur
Praneet Kaur
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Abstract- This write-up examines the efficacy of the 'force majeure' provision under the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008 ('CGD Authorisation Regulations').

1. Why Force Majeure:

What is the necessity of a 'force majeure' provision? Arguably strict liability should be imposed in case of public infrastructure projects. Accordingly, liquidated damages should apply even if performance was not possible on account of events beyond the control of the entity concerned. Counter-arguably, if a project is not economically sustainable, it will result in several undesirable outcomes because stakeholders will seek an escape route.

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