Moot Problem 2

Moot Problem 2
Thursday Batch
Course Teacher: Dr. Sridevi Krishna
1. Bala Mukunda, a sixteen-year prodigy, citizen of Indiana 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.
He misrepresented himself as a major and put the task out to tender.
2. M/s. Gulshan & Gulshan 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 installments in order of the
completion of different phases of the assigned work.
3. Bala accepted their offer and entered into a contract for construction of the multi-purpose
building 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.
4. M/s. Gulshan & Gulshan completed the construction of the ground floor and first floor and ran
out of money and materials for further construction. They informed Bala that they could not
complete the construction unless further capital was made available to them.
5. Bala 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.
6. The roof top pool was completed and the party was a success. Bala entered into a contract
with Veena Gana Producers who agreed to fund for the fusion albums and world tours. Bala told
Ms. Geetha Singh, the Manager of M/s. Gulshan & Gulshan“ Madam, you have saved my career.
Don’t worry about Rs.7, 00,000/-.” Having this as a promise, M/s. Gulshan & Gulshan started a
new project. However, Bala ’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. Gulshan & Gulshan
7. Ms. Geetha Singh compelled Bala to render a music performance in her daughter’s birthday
party. 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 Bala from
paying the debts of Rs.7,00,000/-. Bala 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. Then he did not perform in Ms. Geetha’s party on the advice of his doctor.
8. On Bala ’s eighteenth birthday, both the parties, on grounds of humanity, decided to alter the
contract. Bala acknowledged the debt taken from M/s. Gulshan & Gulshan for rendering past
services and further both agreed on the same point that Bala would pay the debt through easy
monthly installments (EMIs) of Rs. 20,000/- per month till the repayment of the amount of
Rs.7,00,000/-.
9. Bala , later on, felt that the work done by M/s. Gulshan & Gulshan was not performed as he
had specified. He further pointed out that the material used for constructing was substandard and
not satisfactory. He estimated that this would have cost them Rs.3, 00,000/- only. He claimed
that he had paid the money already.
10. Bala then decided to dispose off his property, without paying a single dime to M/s. Senghal
& Senghal. 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. Gulshan & Gulshan could not recover the debt from Bala . As a last
resort, they sent him a legal notice, stating that the money shall be repaid within 15 days.
However, Bala did not send any correspondence or reply to the said notice.
11. In this context, M/s. Gulshan & Gulshan finally decided to seek remedy from the Court of
Law in this regard. The suit was filed by M/s. Gulshan & Gulshan before the Civil Court of
Gardam, in the State of Indiana 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
Bala Mukunda 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 Bala from selling the property until the
suit was disposed off.
12. The Civil Court of Gardam heard the matter and held that a minor’s contract is void ab inito
and thus set Bala free from all his liabilities towards M/s. Gulshan & Gulshan by upholding the
judgment passed in Mohori Bibee v. Dharmodas Ghose. The plea of restitution raised by the
Plaintiff was rejected and injunction was not granted.
13. M/s. Gulshan & Gulshan preferred an appeal before the High Court of Gardam. The High
Court granted injunction and decided to hear the case on merits.

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