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COVID-19 and ‘Force Majeure’

  • 28 Mar 2020
  • 2 min read

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.

Source: PIB

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