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Force Majeure Claim of Contractor based on newspapers fails

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Judgment dated 25.5.2026 of the Commercial Court-01, Patiala House Court House, New Delhi in OMP (COMM) No.132 of 2024 of TCI Freight  Vs.  Indian Oil Corporation Limited

The petitioner was awarded tender for road transportation from refinery of the respondent to different locations in the country.

There was inordinate delay in transportation in Andhra Pradesh and Madhya Pradesh amongst Telangana movement in 2013.

This was duly communicated to the respondent as force majeure events.

However, the respondent has imposed penalty for non-placement and late delivery.   The petitioner had incurred loss of Rs.60,27,719/- and invoked arbitration.

The Arbitrator dismissed all the claims vide Award dated 16.3.2024.

5.5 The Contractor shall be entitled to the benefit of this clause only if the Contractor gives notice of the occurrence of the circumstances amounting to force majeure to IOCL by fax/email, immediately followed by a confirmatory letter sent by Registered Post Acknowledgment due. In the event of the Contractor, pleading any grounds as constituting force majeure/ the opinion of the Management of IOCL on that behalf alone shall prevail and, if in the opinion of IOCL/ the grounds pleaded by the Contractor do not constitute force majeure/ then the Contractor shall not be entitled to plead the same and/or claim any relief under this clause. In case an event of force majeure continuous for more than 30 days/ IOCL and the Contractor shall consult each other to arrive at a mutually acceptable solution.

Before ld. Arbitrator, when petitioner had raised the ground of force-majeure, then it was again onus of the petitioner to establish it by way of cogent evidence, rather than citing newspaper clippings. Ld. Arbitrator cited the legal principle enunciated in case laws, to discard newspaper clippings, and I have no good reason to declare the same as perverse finding.

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