Force majeure in lease disputes limits interim rent deposits during complete lockdown, while rent may still apply for restricted operations.

An interim measure under section 17 should not compel a lessee to deposit rent for periods of complete lockdown where liability is seriously disputed under a force majeure clause and remains pending final arbitral determination. The unresolved question of whether rent was payable for the closed period could not be prejudged through interim relief. However, the lessee remained liable to deposit rent for periods when the premises were not completely shut and business could continue with restrictions. The direction to deposit the entire rental amount was therefore modified to exclude the complete lockdown period until the arbitration finally decides the force majeure issue.

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Issues: Whether an arbitral tribunal can, by way of an interim measure under section 17, direct a lessee to deposit the full rental amount for the period covered by a serious and unresolved force majeure dispute, and whether such direction should exclude the period of complete lockdown.

Analysis: The liability to pay rent for the disputed period was directly linked to the force majeure clause in the lease deed and had not yet been finally adjudicated in the arbitral proceedings. For the period of complete closure due to lockdown, the question whether rent remained payable was still open for decision on merits. An interim direction compelling deposit of the entire rent for that period would therefore prejudice the final adjudication. At the same time, for periods when the premises were not completely closed and the business was permitted to operate with restrictions, the lessee remained liable to deposit rent.

Conclusion: The direction to deposit the entire rental amount was modified. The lessee was held liable to deposit rent for the periods other than the periods of complete lockdown, and no deposit was required for the periods of complete closure until final determination of the force majeure issue in the arbitration.

Ratio Decidendi: Where the very liability to pay rent for a specified period is seriously disputed on a force majeure basis and remains pending final arbitral determination, an interim measure under section 17 should not compel deposit for the period of complete closure, though rent may still be directed for periods not covered by complete shutdown.

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