MINISTRY OF FINANCE

Clarification on Force Majeure Clause (FMC) regarding West Asia situation for government contracts

By TEAM CIRCULAR EXPRESS • 29 Apr 2026

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#Contract #Contractual #Extension #Ministry of Finance #Procurement

The Ministry of Finance has issued a clarification regarding the invocation of the Force Majeure Clause (FMC) in government contracts due to the ongoing situation in West Asia. It specifies that the West Asia situation should be treated as 'war' for the purpose of invoking FMC. Procuring entities may grant extensions for completion of contractual obligations for a period of two to four months without penalty. This provision applies only to contracts where parties were not in default as of 27th February 2026. All contractual obligations are expected to revive upon the completion of the affected period.

City

New Delhi

State

Delhi

purpose of issuance

To clarify the application of Force Majeure Clause in government contracts in light of the West Asia situation.

Most Important Details

The West Asia situation is classified as 'war' for FMC purposes; extensions of 2-4 months allowed for contracts not in default as of 27th February 2026.

City_1

New Delhi

State_1

Delhi

purpose of issuance_1

To clarify the application of Force Majeure Clause in government contracts in light of the West Asia situation.

Most Important Details_1

The West Asia situation is classified as 'war' for FMC purposes; extensions of 2-4 months allowed for contracts not in default as of 27th February 2026.