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Supreme Court of India 2022-04-19 partly_allowed

Evergreen Land Mark Pvt. Ltd vs John Tinson & Company Pvt. Ltd. & Anr

Bench: 2 — M. R. Shah, B.V. Nagarathna

In Brief

A restaurant lessee of two premises challenged an interim arbitration order requiring full deposit of rent during the COVID-19 lockdowns (March 2020–December 2021). The lessee invoked the lease's force majeure clause, arguing rent should not be due for complete closure periods. The Supreme Court partly allowed the appeal, holding that while business downturn alone cannot excuse rent, the tribunal cannot order 100% deposit for periods of complete lockdown when the force majeure claim remains undecided. The deposit obligation was modified to exclude periods of total government-mandated closure, pending final adjudication on the force majeure clause.

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Arbitration Lease & Tenancy COVID-19 Relief Force Majeure Interim Orders Commercial Law

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