INDIA Law and Practice Contributed by: Gautam Bhatikar, Deeksha Dev Singh and Isha Patil, Phoenix Legal
ways such as the Suez Canal – have significant legal and commercial implications for India. One major impact lies in the field of shipping and car - riage contracts, where the doctrine of frustration under the Indian Contract Act, 1872 often comes into play. When performance becomes impos - sible due to blocked trade routes, port closures or the designation of conflict zones as unsafe, contracts may be deemed frustrated, releas - ing parties from their obligations. Additionally, force majeure clauses in contracts are frequently invoked during such crises to suspend or termi - nate contractual duties. However, the enforce - ability of these clauses depends on their specific wording and the extent of the disruption. The implications extend to war risk insurance, which has become increasingly crucial for Indi - an businesses engaged in international trade. Vessels operating in conflict zones face surg - ing premiums, particularly for routes affected by the Red Sea conflicts or shipments near Ukraine. These heightened costs are often passed onto exports and imports, making trade more expen - sive. Disputes over war risk coverage have also risen, as insurers sometimes invoke exclusions to deny claims. This highlights the necessity for businesses to carefully negotiate and scrutinise insurance policies to ensure adequate protection against such risks. Delays in the delivery of goods caused by inter - national conflicts present another pressing chal - lenge. Route diversions, inspections and port restrictions disrupt supply chains, particularly for time-sensitive trade contracts. For goods with limited shelf lives, such as perishables or sea - sonal products, these delays can result in sub - stantial financial losses. Buyers or importers may claim damages or impose penalties on sellers for breaches of timely delivery obligations, espe - cially if the delays could have been mitigated.
Additionally, delays often lead to the deteriora - tion of goods, giving rise to disputes over quality and fitness for purpose. Sensitive cargo, such as perishables or pharmaceuticals, is particu - larly vulnerable, with buyers potentially rejecting shipments or seeking compensation. In extreme cases, constructive total loss can occur when goods lose their value entirely due to extended delays, damage or abandonment caused by the conflict. This further exacerbates financial loss - es and prompts insurance claims or indemnity demands between parties. 9. Additional Maritime or Shipping Issues 9.1 Other Jurisdiction-Specific Shipping and Maritime Issues Several important points should be considered in terms of maritime and shipping legal aspects in India, as follows. • Jurisdiction: India has a well-developed mari - time and shipping industry, and the jurisdic - tion of Indian courts extends to Indian ves - sels and seafarers, regardless of where the vessel may be located or the nationality of the seafarer. • Maritime labour laws: India has ratified sev - eral international conventions related to the protection of seafarers’ rights, such as the Maritime Labour Convention 2006. Indian seafarers are entitled to fair wages, safe working conditions and protection against discrimination. • Carriage of goods by sea: the Carriage of Goods by Sea Act, 1925 governs the car - riage of goods by sea in India and provides a framework for determining liability in the case of loss or damage to goods in transit.
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