Many rental agreements do not allow tenants to suspend or suspend payment of rent and taxes, regardless of any event. In such cases, the solution can be found either by mutual agreement between the parties or on the basis of sections 62 and 63 of the Indian Contract Act of 1872. Given the unprecedented nature of the widespread explosion of COVID-19 and/or the government`s response around the world, it is very likely that COVID-19 would be a force majeure event among many contracts with such clauses. The official memorandum of 19.02.2020, entitled Force Majeure Clause (FMC) of the Ministry of Finance, Department of Financial Policy, makes it clear that the spread of coronavirus (COVID-19) must be considered a natural disaster case and that FMC can be invoked according to the appropriate procedure. Tenants hope to invoke the doctrine of force majeure as legal protection against non-compliance with their contractual obligations. Even large groups such as PVR and Reliance Retail have been forced to use this maxim. Legal bodies such as the RERA in many countries have had to take note of the pandemic as a case of force majeure. But the question is what about the rights of those who have been forced to evacuate their inhabitants and fight for themselves. Even the Apex court refused to enter a plea to instruct the centre to ensure compliance with the MHA order that landlords not ask students or workers not to evacuate the premises or to ask for rent for a month during the COVID-1b blockade. A bank headed by Judge Ashok Bhushan, who heard the case via video conference, rejected the plea and said the Supreme Court could not enforce government orders. Referring to the above decisions, the Delhi Supreme Court confirmed that Section 56 of the Contracts Act did not apply to a lease and other similar contracts, which are “executed contracts” and not “execution contracts”. 3.
What is the “force majeure” clause in commercial leases or leases? It is important to mention here that the BRITISH government passed a special coronavirus law in 2020 to deal with all the powers and contingencies associated with this pandemic, which came into force on 25 March 2020. Schemes 82 and 83 of this Law deal with the protection of tenants from the right of landlords to reintegrate/decay commercial premises for non-payment of rent during the relevant period. The deadline applicable in this Act is the day after the law comes into force, until June 30, 2020, or as late as the relevant national authority may indicate it in legal regulations.