This case dealt with the payment to be made by the Petitioner to the Respondent for collecting toll on a particular road.
The court relied on a MORTH circular when it fell short on the procedural aspects of the case filed.
It was held :
“27(i) The respondent Corporation itself referred to Circular dated 19.02.2020 issued by the Ministry of Road Transport Highways (MORTH) which notified that the COVID-19 pandemic was a force majeure occurrence. In effect, the force majeure clause under the agreement immediately becomes applicable and the notice for the same would not be necessary. That being the position, a strict timeline under the agreement would be put in abeyance as the ground realities had substantially altered and performance of the contract would not be feasible till restoration of the pre-force majeure conditions.”
Covid-19 is to be included as Force Majure in Contracts.
This judgment also provides suitable insight into the effect this pandemic will have on contractual agreements in the Road constructions.