COVID-19 and ‘Force Majeure’ | 28 Mar 2020
Why in News
- In view of the COVID-19 pandemic, Indian Railways has decided that the period from 22.03.2020 to 14.04.2020 shall be treated under “Force Majeure”.
Key Points
- A Force Majeure (FM) means extraordinary events or circumstances beyond human control such as an event described as an Act of God (like a natural calamity).
- During this period no demurrage, wharfage, stacking, stabling, detention and ground usage charge shall be leviable.
- Zonal Railways have been advised to coordinate with State Government authorities to ensure logistics support in order to keep up the essential goods transportation.
Force Majeure
- Force majeure refers to a clause that is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations.
- Force majeure clauses excuse companies (or other parties to a contract) from meeting certain obligations when events beyond their control interfere with their ability to hold up their end of the bargain.
- If invoked, the clauses can relieve companies from commitments, temporarily or permanently, without being in breach of their agreement.