A recurring issue during the Covid-19 crisis has been the alleged impossibility of performance of contractual obligations and its consequence on invocation of bank guarantees and negotiation of letters of credit. Does the frustration of the underlying contract entitle a party to seek an injunction against the invocation/encashment of a bank guarantee or a letterContinue reading “Covid-19 and Force Majeure: Part III”
Author Archives: Sharad Bansal
Is ‘Special Equities’ a Distinct Exception to Invocation of Bank Guarantees?
The law on invocation of bank guarantees is well-settled. The Supreme Court has consistently held that the beneficiary of a bank guarantee is entitled to invoke it (in accordance with its terms) irrespective of any dispute between the beneficiary and the party at whose behest the guarantee is given. For, a bank guarantee is anContinue reading “Is ‘Special Equities’ a Distinct Exception to Invocation of Bank Guarantees?”
Covid-19 and Force Majeure: Part II
In the previous post, I had discussed the force majeure clause in Standard Retail Pvt. Ltd. v. G.S. Global Corp & Ors. and argued that Section 56 is non-derogable to the extent that it leads to frustration of contract on the ground of a supervening illegality; and a force majeure clause compelling performance despite theContinue reading “Covid-19 and Force Majeure: Part II”
Covid-19 and Force Majeure: Part I
There has been much discussion about the impact of Covid-19 on parties’ contractual obligations and the consequence of their failure to perform their obligations. Under Indian law, it is well-settled that there are two possible ways of determining the outcome in such a situation: either as per Section 32 or Section 56 of the IndianContinue reading “Covid-19 and Force Majeure: Part I”
Registration of decrees: Determining the existence of ‘pre-existing right’
The Indian Registration Act, 1908 (“Registration Act”) mandates the registration of any non-testamentary instrument which inter alia creates any right, title, or interest in any immoveable property which is valued at more than one hundred rupees (Section 17(1)(b)) and any non-testamentary instrument which acknowledges the receipt or consideration on account of the creation of suchContinue reading “Registration of decrees: Determining the existence of ‘pre-existing right’”
Are Exclusion of Liability Clauses in a Contract of Bailment Valid?
Chapter IX of the Indian Contract Act, 1872 (“Act”) deals with bailment. Section 151 of the Act imposes an obligation on the bailee in all bailment contracts (whether gratuitous or for reward) to “take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstances, take ofContinue reading “Are Exclusion of Liability Clauses in a Contract of Bailment Valid?”
BGS SGS SOMA JV v. NHPC Ltd. and the Internationalization of Domestic Arbitration
The significance of ‘seat’ and ‘venue’ of arbitration has been a much-debated issue under Indian law and in the past decade, the Supreme Court has had multiple occasions to propound the significance of these two concepts. Much of the discussion has been in the context of international commercial arbitrations. The most recent in this lineContinue reading “BGS SGS SOMA JV v. NHPC Ltd. and the Internationalization of Domestic Arbitration”