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Showing posts with the label force majeure

Can developer claim relief citing delay of government permission ?

In Prerna Dewan Vs. IREO Fiveriver, the Opposite Party has stated that possession of the plot, in question, could not be offered to the complainant, within the period stipulated in the Agreement for want of development work at the site, on account of the reasons beyond its control i.e. on account of force majeure circumstances like delay in sanction of layout plans by the Competent Authorities; delay in grant of NOC from the Irrigation Department; delay in clearance and delayed grant of licence for additional land measuring 10.594 acres plus 18.343 acres, by the Competent Authorities, as the area was situated in a squatted small pockets; delay in approvals for environment clearance by the Competent Authorities; and also stay on construction on the land, in question, granted by the Hon’ble Supreme Court of India. The State Consumer Dispute Resolution Commission rejected the above contention by stating It was the bounden duty of the opposite party, to get approved the final la...

Change in Indonesian Law is not a force majeure event

In Energy Watchdog v. Central Electricity Regulatory Commission, the issue involving the Power Purchase Agreement (PPA) entered into by the Government and the Adani Enterprises, where the Power Generating Company had pleaded that the rise in price of coal consequent to change in Indonesian law would be a force majeure event which would entitle the respondents to claim compensatory tariff, the bench of P.C. Ghose and R.F. Nariman, JJ held that the change in the Indonesian Law was neither the fundamental basis of the contract dislodged nor was any frustrating event and that alternative modes of performance were available, albeit at a higher price. The respondents had pleaded before the Appellate Tribunal for Electricity to either discharge them from the performance of the PPA on account of frustration, or to evolve a mechanism to restore the petitioners to the same economic condition prior to occurrence of the change in law as the rise in the price of Indonesian coal, according to them,...