Courts closed for pandemic, but lawyers mint moolah with lockdown suits

Vadodara: After its clients refused to accept its order worth crores of rupees of custom-made engineering goods citing delay in delivery, a city-based company was left exploring legal options as the goods are still lying in its facility and the client is refusing payment.
This is not an isolated case where the three-month long lockdown has left companies in the lurch. But, interestingly it has kept lawyers practising civil and corporate law in the city with their hands full.
While their institution is shut, the men in black have their doors wide open for clients hit hard by the pandemic-related economic slump and seeking legal recourse to coerce their clients clear pending bills.
According to the lawyers, majority of the disputes relate to rent payments of commercial establishments.
“Many people who have agreement for years and are aware that there is no business in near future want either payment deferred or are sending notices for cancellation of agreement,” said advocate Vijay Shirke. He said with the possibility of big fat weddings dim in the near future, people managing party plots are in a limbo and their security deposits are also at risk.
“The lockdown and the pandemic had hit the food industry the hardest. While their businesses is almost nil, the demand for rent plagues them,” said another advocate Jaideep Verma.
However, there are also some who have agreed to deferment and adjustments in rent payments. “I have had five to six clients where they amicably agreed to defer payment because the force majeure clause is not applicable in cases related to rent,” said advocate Avadhoot Sumant.
Besides rent disputes, lawyers are also coming across cases of default of payments.
“Due to lockdown, people’s earnings have been affected due to which they are not able to repay money that they had borrowed. Right now, we are just sending notices across for recoveries,” said advocate Sohil Godia. Verma also said that when the courts reopen, it will be drowned in a deluge of cases related to negotiable instruments.
Shirke added that in some cases parties will have to amicably settle the issue by sitting across the table as civil cases can take years.