Sec-b Moot Problem-ii.docx

MOOT PROPOSIITON 1. Raj Verma is CEO of Green Tree Building Energy (P) Ltd (GTBE). The Company deals in management of energy efficient building. GTBE is having a staff of 400 people. GTBE is an emerging company in this sector. This sector is a sunrise sector of India as energy is a big issue of climate change mitigation in India. 2. Raj Verma is a graduate from FMS Delhi as is aspiring to tap 50% market by 2020. Raj Verma to equip the company with good people and right staff is hiring right caliber people for the company. He hires Viram as Strategic Director for the company. 3. Viram in a scan of working of enterprise finds that GTBE still is working on manual operation and all charting and data analysis is being done manually with outdated computer and networks which are highly insecure and susceptible to hacking. 4. Viram suggests to Raj to go for updating of GTBE in terms of updating. Raj holds a top level executive meeting to discuss for modernizing the company and in the meeting, it is decided that company needs to be updated with state of the art computer with highly secured networking. 5. Viram invites tender for purchase of 100 Laptops with all new specifications, 200 desktops with latest specifications, 100 notebooks of Apple company. 5 tenders are deposited out of which tender of Softech solutions which was based in Kanpur was accepted though e-tendering process. GTBE was having its headquarter in NOIDA. There was an arbitration clause in the agreement and deadline for supply was fixed 15th December 2017. Time was essence of contract. 6. The networking of company was to be processed by TCS for a tender of 200 crores was accepted by TCS New Delhi. The networking was to be completed by 15th December 2017. Time was essence of contract. 7. The master agreement maintained that in case of disputes all matters shall be settled amicably by the arbitration. The seat of arbitration shall be in NOIDA and arbitration shall be run in English language only. 8. Softech Solutions started supplying the computers to GTBE. It supplied 100 laptops to it as per order on 9th December. On 10th December while working for networking of the company TCS New Delhi complained of moisture in the building and stopped working till water proofing is done.

9. On 6th December in Maulviganj area Muslims are observing the Black Day commemorating the demolition of Babri Masjid. On the same day Hindu Extremist outfits are observing as ‘Shurya Divas’. On this day a boy Ramswaroop leads a congregation in the Maulviganj area shouting anti-muslim slogan. 10. In Chawk area the Muslim youths of Maulviganj get agitated by the slogans and heated argument is exchanged between the youths. Soon the mob turns violent and they start firing with illegal arms upon each other. Ramswaroop is killed in such firing. 11. Killing of Ramswaroop triggers violence in Kanpur. In Maulviganj area Softech Solutions has the biggest warehouse which is torched by the unruly mob and in fire the whole warehouse is destroyed which casuse a damage of 500 crores to Softech. 12. Softech is having equally big warehouses in other part of country but this damage breaks the spinal chord of the company. Softech writes a letter on 11th December, 2017 to GTBE about inability to perform the contract on account of ‘Force Majeure’. GTBE being annoyed with the letter writes a letter of enforcement of contract as per placed order. 13. Softech Solutions wants the revision of original contract pleading ‘impossibility on account of riot’ to perform the contract. Softech Solutions demands 3 months time to complete the contract. 14. TCS meanwhile starts working on network of the company after due repairs and water proofing. TCS is about to complete the work but in order to encrypt the whole network and protect the systems of enterprise and maintain the firewall demands all computer of the enterprise to be installed for final completion of work. 15. In case GTBE is unable to give all the computers by 13th December the completion of networking is not possible by TCS. 16. In wake of such situations GTBE is unbale to revise the contract of Softech and wants to treat is as a breach of contract. A case is filed for breach of contract in NOIDA Civil Court which is being objected by Softech on the plea that it has no jurisdiction. Softech pleads ‘frustration’ and riot as a reason of non-performance of the contract which is negated by GTBE. 17. Argue the case.