Legal Implications Of Force Majeure In Real Estate
- IJLLR Journal
- 38 minutes ago
- 2 min read
Saurav Kolte, Symbiosis Law School, Pune
ABSTRACT
This article examines the doctrine of force majeure within the Indian real estate sector, tracing its origin from Roman law’s vis major to its modern application under the Indian Contract Act, 1872, and the Real Estate (Regulation and Development) Act, 2016. It analyses various judicial interpretations of statutory provisions, notably Sections 32 and 56 of the Indian Contract Act and Section 6 of RERA, which have shaped the scope of the doctrine. The article also assesses the impact of COVID-19, showcasing how regulatory extensions and judicial scrutiny strive to achieve balance between developers’ relief and homebuyers’ protection.
INTRODUCTION
In the real estate sector, where contracts bind parties to strict adherence of obligations, the doctrine of force majeure stands as a shield against unforeseeable events. Originating from civil law principles, this clause excuses performance when extraordinary, unforeseeable events like natural calamities, pandemics, or government restrictions makes performance impossible. While the features of the doctrine are often overlapped with doctrine of frustration and doctrine of impossibility, the key difference among them is that Force Majure is typically in form of a clause mentioned in a contract, & Impossibility and Frustration are directly mentioned under S. 56 of Indian Contract law as a provision.
In India, the doctrine of force majeure has major implications in the Real Estate Sector, with its provisions mentioned in the Indian Contract Act, 1872, and the Real Estate (Regulation and Development) Act, 2016 (RERA). The judiciary has long played a key role in defining the scope of force majeure in Contracts and Real Estate, & global events, such as the COVID-19 pandemic, has brought it into focus, challenging its limitations and interpretations
