Justice G R Swaminathan observed that the relationship between the parties is contractual in nature and the rights of the parties will have to be determined in terms of the contract. Citing that there was no force majeure clause in the agreement between the parties, the judge said that in the tender notification, there is a stipulation that the licensee will not be excused from his payment obligation under any circumstance. The judge observed that the court would be justified in treating the lockdown as a force majeure event. The judge said that the GO was issued waiving the rental amount for two months based on the letter sent by the commissioner of municipal administration in June 2020. No one would have anticipated that the lockdown would continue for several more months.

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Madras high court waives off rent for shop for lockdown period
Kaushik Kannan | TNN | Updated: Feb 6, 2021, 06:11 IST
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Madras high court
MADURAI: Referring to lockdown during Covid-19 pandemic as a ‘force majeure’ in a contractual agreement between a licensee and licensor, the Madras high court has waived the rent amount to a shopkeeper who had licensed a shop at Vadasery Christopher bus stand in Kanyakumari district. ‘Force majeure’ is defined as an event outside the control of the parties and which prevents one or both of the parties from performing their contractual obligations, the court said.
The court was hearing a petition filed by R Narayanan, who sought to forbear the Nagercoil Corporation authorities from demanding licence fee for the period from March 24, 2020 to September 6, 2020 for the shop which was licensed by him.
On account of lockdown, the bus stand and the shop were closed for the above mentioned period. Considering the hardships of the licensees, a GO was passed by the municipal administration and water supply department to waive the rental amount for April and May 2020.
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Justice G R Swaminathan observed that the relationship between the parties is contractual in nature and the rights of the parties will have to be determined in terms of the contract.
Citing that there was no force majeure clause in the agreement between the parties, the judge said that in the tender notification, there is a stipulation that the licensee will not be excused from his payment obligation under any circumstance. The judge observed that the court would be justified in treating the lockdown as a force majeure event.
The judge said that the GO was issued waiving the rental amount for two months based on the letter sent by the commissioner of municipal administration in June 2020. No one would have anticipated that the lockdown would continue for several more months.

“This is how bureaucracy functions. The secretary to government did not deem it necessary to go beyond the terms of the request made by the commissioner of municipal administration. But a constitutional court cannot have a blinkered vision. It must take into account the position that prevails on the date when the list is adjudicated,” observed the judge.
The judge said that if the local body had directed the licensee to close down the shop, it cannot demand fee from the licensee for the period when the shop is shut down.
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Hence, the judge said that he has no difficulty in coming to the conclusion that the petitioner stands relieved of his obligation to pay the licence fee during the period from March 24 to August 31, 2020, when there was complete lockdown.
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