Bombay High Court has rejected “Force Majeure” to a number of steel importers who had filed a petition to restrain the encashment of their letters of credit by Korea based exporters. The petitioner in view of the nationwide lockdown owing to Covid-19 pandemic had rendered contracts with Respondent as terminated terming it as unenforceable on account of frustration, impossibility and impracticability. Justice A.A Sayed in the present case stated that since Steel distribution has been declared as “essential services”, the petitioner could not use lockdown as an excuse to refrain from performing the obligations of the contract, thus stating that the “Force Majeure” clause was only applicable to the respondents in this case. Reddy & Reddy law firm is a law firm based in Pune comprising of a well experienced set of lawyers handling matters related to Corporate law amongst other sectors of law.
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