Force majeure
S DEB
(Querist) 19 September 2013
This query is : Resolved
In a wind turbine farm a contract was signed between the investor who owns the wind turbines and the operator of the wind turbine farm for operation and maintenance of the wind turbines. Wind turbines are located in an vast area and long lines of power cables run from the turbines to the electrical substation. The operator of the wind turbine farm have deployed security to guard their installation and electrical lines. Miscreants are quite active in the area and frequently resort to cutting and stealing the electrical cables thereby causing shut downs.
The question is whether such shut downs can be called a Force Majeure condition.
Guest
(Expert) 19 September 2013
Mr. Deb,
I would have replied your query. But, since force Majeure includes several events your query is deficient of certain vital information to give you appropriate solution to your query. So, I would like to know some more information as follows:
(1) As a Superintendding Engineer, what is your connection, either with the operator and maintenance contractor or the wind turbines farm owner?
(2) Whether you are talking of cable theft between turbine to turbine within the farm or outside the wind turbines farm?
(3) If the cable theft relate to the area outside the turbines farm, whether that is also included in the contract agreement for security arrangements by the operator or not?
(4) What exact description has been included in the "Force Majeure" clause in the contract agreement?
(5) If some specific description has already been included in the "Force Majeure" clause, what actually is the nature of dispute and from whose side, the operator or the wind turbines owner?
Rajendra K Goyal
(Expert) 19 September 2013
All the clauses of the agreement need to be seen. Well advised by the expert PS Dhingra ji.
ajay sethi
(Expert) 19 September 2013
commercial query . you can afford legal fees . it appears you had signed contract with leading manufacturer of wind turbines . these are common complaints of investors wherein they have been denied payment on grounds of force majeure
S DEB
(Querist) 19 September 2013
Dear Dhingra Sir,
Our company has already installed wind turbines and the O&M contract has been given to the OEM (original equipment manufacturer) and I am in the supervision of the contract. The payment for O&M is paid as per the electricity generation. The contract stipulates that the operator may be penalised if the guaranteed minimum generation in a year is not met. Therefore there is every likelihood that the operator may take the advantage of the cable theft to cover up his own fault and term it as force majeure The cable theft took place within the wind farm and there is no physical boundary. The area stretches as wide as 20 km x 20 km. There is no mention of theft in the force majuere clause. Therefore can the operator take the plea of force majeure if a cable theft takes place.
Guest
(Expert) 19 September 2013
Dear Mr. Deb,
In fact, the exact solution to your query depends upon detailed examination of the agreement and interpretation of the contents in totality.
However, the term force majeure includes, the events on which a man normally does not have control, like, war, labour strike, natural calamities, extreme weather, or an effect that cannot be reasonably anticipated or controlled.
The rest depends upon the nature of contents of the agreement, irrespective of whether the force majeure clause includes or not the case of theft of cables.
V R SHROFF
(Expert) 19 September 2013
terms Agr is vital to decide.
Raj Kumar Makkad
(Expert) 20 September 2013
Well advised by experts so no more to add.
