{"id":320456,"date":"2024-04-22T10:00:29","date_gmt":"2024-04-22T04:30:29","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=320456"},"modified":"2024-04-26T17:43:04","modified_gmt":"2024-04-26T12:13:04","slug":"raj-hc-waives-of-contractual-fees-payable-to-gram-panchayat-during-covid-19-due-to-force-majeure-scc-times","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/04\/22\/raj-hc-waives-of-contractual-fees-payable-to-gram-panchayat-during-covid-19-due-to-force-majeure-scc-times\/","title":{"rendered":"Force Majeure | Rajasthan High Court waives contractual fees payable to Gram Panchayat during \u201cunforeseen\u201d COVID-19"},"content":{"rendered":"
\n

Rajasthan High Court:<\/span> In a writ petition preferred by the petitioners challenging the recovery notice issued by Gram Panchayat, Pasund demanding a payment of Rs.19,26,680\/-, in the of petitioners’ inability to perform contractual obligations due to the COVID-19 pandemic, a single-judge bench comprising of Vinit Kumar Mathur., J., while acknowledging the impact of unforeseen circumstances on contractual obligations, partly allowed the writ petition, quashed the recovery order for the period affected by the pandemic, and instructed the Gram Panchayat to recalculate the amount accordingly.<\/p>\n

Factual Matrix<\/p>\n

In the instant matter, the petitioners entered into an agreement with Gram Panchayat, Pasund, on 30-01-2019, for removal and dumping of marble slurry with a stipulated monthly payment by the petitioners. Due to the outbreak of COVID-19 pandemic, the petitioner faced difficulties in fulfilling their contractual obligations, particularly from March 2020 to June 2021, during which industrial operations were halted due to lockdown measures. Consequently, the Gram Panchayat, Pasund issued a recovery notice of Rs.19,26,680\/- against the petitioners. Aggrieved by the issuance of impugned recovery notice, the petitioners preferred the preset petition challenging the same.<\/p>\n

The petitioners contended that the pandemic situation caused lockdowns, halting industrial activities, which prevented the petitioners from fulfilling their contractual obligations. The petitioners asserted that they fall under the category of “Force Majeure” due to circumstances beyond their control. It was argued for the benefit of waiver, similar to that granted by the State Government to other contractors affected by the pandemic. It was further contended that paying the demanded amount would cause financial hardship to the petitioners’ families. However, the respondents contended that the petitioners are obligated to fulfill their contractual obligations regardless of external circumstances. It was asserted that the agreement does not include provisions for relaxing payment obligations in cases of unforeseen events and there is no provision in the agreement allowing waiver of payments due to external factors. It was further contended that the State Government’s actions regarding other contracts do not apply to the petitioners’ situation.<\/p>\n

Moot Point<\/p>\n

    \n
  1. \n

    Whether the petitioner is liable to pay the amount ordered by the Gram Panchayat, Pasund?<\/p>\n<\/li>\n

  2. \n

    Whether the outbreak of COVID-19 pandemic constitutes force majeure, relieving the petitioner from contractual obligations?<\/p>\n<\/li>\n<\/ol>\n

    Court’s Reasoning<\/p>\n

    The Court found that the petitioners were prevented from fulfilling their obligations due to circumstances beyond their control. The Court acknowledged the agreement between the parties and the petitioners’ inability to fulfil contractual obligations due to the COVID-19 pandemic. The Court invoked the doctrine of “Force Majeure” and stated that if one party is unable to perform due to unforeseen circumstances, they cannot be held liable. While citing Satyabrata Ghose<\/span> v. Mugneeram Bangur & Co.<\/span>, (1953) 2 SCC 437<\/a>, the Court held that the petitioners’ situation falls under Section 56<\/a> of the Contract Act, 1872<\/a>. Referring to the doctrine of frustration under Section 56 of the Contract Act, the Court held that the petitioner’s inability to perform was beyond their control and qualifies for waiver of contractual obligations. The Court also noted that the respondent admitted to the suspension of work for 10 months, aligning with the petitioner’s argument.<\/p>\n

    “…if the situations beyond human control happen during the currency of a contract and the same have not been taken note of or written in the contract\/agreement, they are required to be considered while settling the dispute between the parties for balancing the equity and arriving at a just and proper decision.”<\/p>\n

    Court’s Decision<\/p>\n

    The Court partially allowed the writ petition and quashed the recovery order for the period from March 2020 to June 2021. The Court instructed the Gram Panchayat, Pasund to recalculate the amount, waiving the recovery for the aforementioned period and directed the petitioner to deposit the recalculated amount in installments determined by the Gram Panchayat, Pasund.<\/p>\n

    [Manoj Paliwal<\/span> v. State of Rajasthan<\/span>, 2024 SCC OnLine Raj 914<\/a>, order dated 15-04-2024<\/span>]<\/p>\n\n

    Advocates who appeared in this case :<\/p>\n

    Mr. Sandeep Saruparia, Counsel for the Petitioners<\/p>\n

    Mr. Falgun Buch, Counsel for the Respondent 3 and 4<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Rajasthan High Court held that the Court must consider Unforeseen Circumstances in Contract Disputes, thereby, balancing equity for a just decision.<\/p>\n","protected":false},"author":67514,"featured_media":314824,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[67795,39924,15811,25844,67794,2575,30458],"class_list":["post-320456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-contractual-fees","tag-covid-19","tag-force-majeure","tag-gram-panchayat","tag-justice-vinit-kumar-mathur","tag-Rajasthan_High_Court","tag-waiver"],"yoast_head":"\nRajasthan High Court waives of contractual fees payable to Gram Panchayat during COVID-19 due to Force Majeure | SCC Times<\/title>\n<meta name=\"description\" content=\"Rajasthan High Court waives of contractual fees 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HC issued directions to provide a pan-Rajasthan solution for persisting problem of encroachment on the land of public way, johar paitan, river bed etc.","author":"Editor","date":"November 8, 2021","format":false,"excerpt":"Rajasthan High Court: A Division Bench of Vinit Kumar Mathur and Sangeet Lodha, JJ., disposed of the petition and issued directions to the respondents to remove encroachments made over the land in question.\u00a0 The instant petition was filed by the petitioners seeking directions to the respondents to remove encroachments made\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case 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Counsel appearing for the petitioners, Mr Pushkar Taimni submitted that the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":221493,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/26\/mp-hc-no-final-order-can-be-passed-without-conducting-enquiry-under-s-89-of-m-p-panchayat-raj-awam-gram-swaraj-adhiniyam\/","url_meta":{"origin":320456,"position":2},"title":"MP HC | No final order can be passed without conducting enquiry under S. 89 of M.P. Panchayat Raj Awam Gram Swaraj Adhiniyam","author":"Bhumika Indulia","date":"October 26, 2019","format":false,"excerpt":"Madhya Pradesh High Court: G. S. Ahluwalia, J., allowed a petition and directed the respondents to not take any coercive step against the petitioner unless and until an enquiry is conducted under Section 89 of\u00a0M.P. Panchayat Raj Awam Gram Swaraj, Adhiniyam, 1993. \u00a0The petitioner has filed the instant petition under\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":320559,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/04\/23\/suspension-of-democratically-elected-persons-due-to-political-vendetta-leads-to-weakening-of-democracy-raj-hc-scc-times\/","url_meta":{"origin":320456,"position":3},"title":"Suspension of democratically elected persons due to political vendetta weakens foundation of democracy: Rajasthan High Court","author":"Ritu","date":"April 23, 2024","format":false,"excerpt":"Rajasthan High Court held that passing of the suspension order casually in case of elected representatives adversely affects the public at large.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Rajasthan High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Rajasthan-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":214923,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/05\/22\/raj-hc-pump-driver-operator-employed-under-gramin-janta-jal-yojana-entitled-for-wages-prescribed-for-skilled-workman-as-per-minimum-wages-act\/","url_meta":{"origin":320456,"position":4},"title":"Raj HC |\u00a0 Pump Driver\/Operator employed under Gramin Janta Jal Yojana entitled for wages prescribed for skilled workman as per Minimum Wages Act","author":"Bhumika Indulia","date":"May 22, 2019","format":false,"excerpt":"Rajasthan High Court: The Bench of Arun Bhansali, J.,\u00a0 allowed the writ petition filed in regard to payment of minimum wages as prescribed for skilled workman under the provisions of the Minimum Wages Act, 1948.\u00a0 The facts of the case were that the petitioners were employed as Pump Driver\/Operator under\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":254505,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/21\/law-of-precedence\/","url_meta":{"origin":320456,"position":5},"title":"Raj HC | According to Law of Precedence, judgment passed by Coordinate Bench binding, whereas judgment of other High Court has persuasive value; transfer order once executed cannot be cancelled, altered or modified","author":"Editor","date":"September 21, 2021","format":false,"excerpt":"Rajasthan High Court: Dinesh Mehta, J., allowed a petition which was filed challenging the order whereby petitioner\u2019s transfer order dated 28-07-2021 had been amended and she had been posted at Gram Panchayat 12 LNP. Petitioner was working as Gram Vikas Adhikari and vide order dated 28-07-2021, she was posted at\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/320456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67514"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=320456"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/320456\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/314824"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=320456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=320456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=320456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}