Harish Salve: Govt should bring specific Law to deal with Crisis arising out of COVID-19

Observing that the lockdown imposed by the Govt to check the Covid-19 pandemic could lead to many complex legal disputes arising out of non-performance of contractual and statutory obligations by people, companies & authorities, noted constitutional expert and Senior Lawyer Harish Salve said the Centre should bring a law to deal with the issue.

Speaking at a global webinar organised by Bennett University, the Senior Lawyer said that such a law is the need of the hour as the scenario triggered by the pandemic is very complex & the Govt should take initiative to bring legislation instead of leaving it to the judiciary to decide as the courts are already overburdened with cases. 

On the impact of Coronavirus on contracts & commerce, Mr Salve said many countries across the world are considering to frame COVID-specific law to deal with the crisis which has thrown up challenges of a new kind never witnessed earlier.

The Senior Advocate said the Govt. can pass order not to take any coercive action but what will happen in cases of third party duty.

He said that "There is need for a law so that people are not penalised because of non-performance of contractual obligations as whole business were shut & there was no fund during the period".

He said the government has the responsibility to mitigate hardships caused to businesses, service providers etc as lockdown affected the performance of contracts & statutory duties.

"Lockdown has disrupted the performance of these statutory duties, including filing tax returns, reporting to regulators etc. Govt has granted remissions, relaxations but that is only a small part of the existing problem. There is a gap & some law is needed to ensure people are not unnecessarily penalised for non-performance of such duties," Mr Salve said.

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