Moot Problem 1 and Guidlines
Moot Problem 1 and Guidlines
Moot Problem 1 and Guidlines
• Mr. Raj Kumar, a sixteen-year boy, citizen of India was the recipient of the
“Sensational Voice of the Nation” award. He was an astounding singer,
extremely talented not only in Rap, Rock, Hip-Hop and Jazz but also in
Classical and Folk. He wanted to develop his musical career by releasing fusion
albums combining different genres and by engaging himself on world music
tours. So, he wanted a multi-purpose, ultra-modern architectural marvel where
he could have his recording studio, theatre - for live musical performances and
a roof top pool for hosting parties in Hyderabad. He misrepresented himself as
a major and put the task out to tender on 01/01/2015.
• M/s. Sinha & Sinha was a leading building constructor and infrastructure
provider. They offered to do the entire work for Rs.10,00,000/-. Both the parties
knew that this was an unrealistically low-price contract and the amount will be
paid in instalments in order of the completion of different phases of the assigned
work.
• Mr. Raj Kumar is owner of a Land situated at Plot No. 250, Sri Kumar Colony,
Kondapur, Hyderabad. He accepted the offer of M/s. Sinha & Sinha and entered
into a contract on 01/04/2015 for construction of the multi-purpose building on
his Land and for providing all amenities therein.
• According to the contract, the ground floor was for parking, the first floor was
for the music theatre, the second floor was for the recording studio and the last
floor for the roof top pool.
• M/s. Sinha & Sinha completed the construction of the ground floor and first
floor by December 2015 and ran out of money and materials for further
construction. They informed Mr. Raj Kumar that they could not complete the
construction unless further capital was made available to them.
• Mr. Raj Kumar had arranged a poolside party to which he had invited top music
directors, producers and other renowned individuals in the music industry
whom he believed would fund for his dream music albums and music tours. So
he was desperate to have the construction of the roof top pool completed as
stipulated. He had requested for the continuance of the construction work and
further requested to spend the remaining amount of Rs.7,00,000/- on the work
out of their own funds and assured them that the money would be paid to them
as soon as his album is released.
• The roof top pool was completed by April 2016 and the party was a success. Mr.
Raj Kumar entered into a contract with ABC Producers on 01/06/2016 who
agreed to fund for the fusion albums and world tours. Mr. Raj Kumar told Ms.
Jimi Sinha, the Partner of M/s. Sinha & Sinha “Madam, you have saved my
career. Don’t worry about Rs.7,00,000/-.” Having this as a promise, M/s. Sinha
& Sinha started a new project. However, Mr. Raj Kumar’s new fusion music
album was a disastrous flop. Social media enthusiasts and meme pages
massively trolled him for his raucous and bizarre fusion music. He then found
himself unable to pay the amount of Rs.7,00,000/- to M/s. Sinha & Sinha.
• Ms. Jimi Sinha compelled Mr. Raj Kumar to render a music performance in her
daughter’s birthday party on 01/10/2016. Apart from relatives and friends she
had also invited rich people, in order to secure contracts regarding building,
construction etc. and in return she agreed to release Mr. Raj Kumar from paying
the debts of Rs.7,00,000/-. Mr. Raj Kumar agreed on this point and was ready
for the music performance in the party. He also wanted to get back his lost
reputation and start his career afresh. However before the party, he suffered from
a severe sore throat due to over-repetition of rehearsals and he failed to perform
in Ms. Jimmi’s party on the advice of his doctor.
• On Mr. Raj Kumar’s eighteenth birthday on 01/12/2016, both the parties, on
grounds of humanity, decided to alter the contract. Mr. Raj Kumar
acknowledged the debt taken from M/s. Sinha & Sinha for rendering past
services and further both agreed on the same point that Mr. Raj Kumar would
pay the debt through Easy Monthly instalments (EMIs) of Rs. 20,000/- per
month starting from 01/01/2017 till the competition of the payment of
Rs.7,00,000/-.
• Mr. Raj Kumar, later on, felt that the work done by M/s. Sinha & Sinha was not
done as he had specified. He further pointed out that the material used for
constructing was substandard and not in accordance with the description
provided by M/s. Sinha & Sinha. He estimated that this would have cost them
Rs.3,00,000/- only. He claimed that he had paid the money already.
• Mr. Raj Kumar then decided to dispose off his property, without paying anything
to M/s. Sinha & Sinha. When all this foul play came to their knowledge, they
tried to restrain him by putting enormous pressure in order to recover their
money amounting to a total sum of Rs.7,00,000/- which they spent on the
construction and amenities. Even after such prolonged period and altered mode
of payment, M/s. Sinha & Sinha could not recover the debt from Mr. Raj Kumar.
As a last resort, they sent him a legal notice, stating that the money shall be
repaid within 15 days. However, Mr. Raj Kumar did not send any
correspondence or reply to the said notice.
• In this context, M/s. Sinha & Sinha finally decided to seek remedy from the
Court of Law in this regard. The suit was filed by M/s. Sinha & Sinha before
the Civil Court of Hyderabad, in the State of Telangana on the ground that they
had constructed the building as per the terms of the contract and had taken all
the diligent steps to recover the loan made available to Mr. Raj Kumar for
Rs.7,00,000/- but now he refused to pay the said amount and alleged fraud
against him. They also prayed for injunction restraining Mr. Raj Kumar from
selling the property until the suit is disposed off.