Case Name : Energy Watchdog vs Central Electricity Regulatory Commission & Ors Case Reference: (2017) 14 SCC 80 : (2017) 3 SCR 153 Case Number: CA Nos. 5399-5400/2016 Court: Supreme Court Bench: 02 Coram: Pinaki Chandra Ghose, Rohinton Fali Nariman (Author) Date: 11.04.2017
Force majeure arises under
- Contract, 1872 - Section 32 : If it is relatable to an express or implied clause in the contract;
- Contracts - Section 56 : In so far as events occurring de-hors the contract are concerned.
Refer also: Edwinton Commercial Corp vs Tsavliris Russ, (2007) 2 Lloyd’s Rep 517 (CA): Doctrine of furstration of contract is not to be lightly invoked. Mere incidence of expense or delay or onerousness is not sufficient. There has to be a break in identity between the contract and in its performance in the new circumstances.
Taylor vs Caldwell, (1861-73) All ER Rep 24: If unforeseen events occur during the performance of the contract making it impossible of performance, in the sense that the fundamental basis of the contract goes, then such contract need not be performed since in such circumstances, insisting upon performance would be unjust.
See also: Contract, 1872 - Section 32