IMPORTANT POINT
The doctrine of Force Majeure applies when an unforeseen event prevents a party from fulfilling contractual obligations, and such events can excuse performance under Section 56 of the Indian Contract Act.

ORDER :

REKHA BORANA, J.

1. At the request of learned counsel for the petitioner, the service upon the respondent Nos. 1 and 2 is dispensed with as he is not pressing the writ petition against them.

2. With consent of learned counsel for the parties, the writ petition is taken up for final disposal.

3. The present writ petition has been filed against the notice/order dated 25.09.2021 passed by Gram Panchayat, Pasund, Panchayat Samiti Rajsamand, whereby the petitioners have been ordered to deposit a sum of Rs.19,26,680/-.

4. Briefly, noted the facts in the present writ petition are that the Gram Panchayat, Pasund vide Notice dated 05.01.2019 invited tenders for removal of marble slurry and for dumping the same at the dump-yard. The petitioners being the highest bidder were awarded the Contract/Agreement on 30.01.2019 and as per the Contract/Agreement, the petitioners were to pay the amount per month as mentioned in Paragraph 4 of the Agreement. The petitioners started the operations and while they were working as per the Agreement, certain issues cropped up and for certain reasons, the contract/agreement of the petitioners was terminated vide order dated 13.03.2020. The petitioners preferred a writ petition before this Court being SB Civil Writ Petition No.4098/2020 and this Court while issuing notices, stayed the effect and operation of the order dated 13.03.2020. The petitioners, therefore, continued to perform the activities of dumping in pursuance of the agreement entered into between the parties. During the currency of the agreement, for certain periods of time, the petitioners were unable to undertake their contractual obligations for different reasons which have been mentioned in Paragraph 5 of the writ petition. Out of 4 periods mentioned in Paragraph 5 of the writ petition, the period from March 2020 to June 2021 was the period of outbreak of COVID-19 pandemic and because of the pandemic, all industrial operations were stopped and for most of the times, the lock-down was in force and therefore, the petitioners could not perform their part as per the contract/agreement. It was for these reasons, the petitioners could not deposit the contractual amount with the Gram Panchayat Pasund, therefore, the Gram Panchayat, Pasund issued a recovery notice of Rs.19,26,680/- dated 25.09.2021 (Annex.7). Hence, the present writ petition has been filed.

5. Learned counsel for the petitioners submits that the petitioners were ready and willing to perform their part of contractual obligations, however, the situation beyond their control was created in the country due to outbreak of COVID-19 pandemic and therefore, they could not perform their part of contract and thus, the recovery ordered by the Gram Panchayat Pasund vide Annexure 7 is arbitrary, unreasonable and illegal.

6. Learned counsel further submits that because of the lock-down in the country from March 2020 to June 2021 (for most of the time), there was no industrial activity and since there was no industrial activity, there was no question of lifting and dumping the marble slurry and thus, the petitioners were not in a position to perform their part as per the contract/agreement dated 30.01.2019.

7. Learned counsel for the petitioners further submits that the petitioners were unable to undertake their contractual obligations for the reasons beyond their control and therefore, they fall in the category of “Force Majeure” and thus, the Gram Panchayat was not right in passing the order for recovery of a huge amount from the petitioners. Learned counsel submits that the petitioners come from a humble background and are earning their bread and butter by performing the small contracts and, if in these circumstances, a huge recovery of Rs.19,26,680/- is ordered against them, they will be put to a financial crises resulting into the destitution of their families.

8. Learned counsel submits that in an identical situation, the State Government has granted the benefit of waiver of collection of r