IDIA - JHARKHAND CHAPTER

PRESENTS

MEMORIAL
DRAFTING
COMPETITION
2023
 PROBLEM OF THE MEMORIAL DRAFTING
COMPETITION

1. ZemPure Pharmaceuticals (hereinafter referred to as ‘ZemPure’) is a leading

company dealing with medicines, essential drugs and other skincare products. It
was incorporated in August, 2017 under the Companies Act, 2013 with its
registered office in Phune, Mahashashtra in the Republic of Ephedia.

2. Garrysons Ltd. (hereinafter referred to as ‘Garrysons’) is an event-planning

company registered under the Companies Act, 2013 and was incorporated in April,
2015 with its registered office in Moombai, Mahashashtra in the Republic of
Ephedia.

3. ZemPure Pharmaceuticals hosts events, usually every year wherein they meet
their potential new clients and explain to them about the businesses. In the year
2018 and 2019, the event was held in the month of January and it was expected to
be held in January, 2020 as well. The events in the year 2018 and 2019 were a
grand success and the company’s growth rate was almost 60% per year. It was
expected that the growth rate after the event in January 2020 would be almost
80%.

4. To meet these expected growth in the upcoming year, ZemPure was ready to
invest a huge sum of money to bring the best event planning company in Moombai.
Garrysons had conducted an event for their other client, which was a grand
success. On the basis of the same, ZemPure chose Garrysons to host their event to
be held in January 2020 in Mumbai.
5. The agreement between ZemPure and Garrysons was concluded on 4th of
November, 2019 and the date of the event was chosen as 18th of January, 2020.
The event was planned to be held in Moombai. Therefore, there was a contractual
clause which was as follows:

“It shall be the responsibility of the Garrysons Ltd. to take all the employees (of
ZemPure), which are around 80-90, to the venue of the event from the office of
ZemPure in Phune.”

6. On 3rd of January, 2020, ZemPure mailed Garrysons stating:

“Dear ma'am/sir, Happy New Year 2020. This is to write to you with regards to our
agreement concluded on 4th of November, 2019 that all the employees of the
ZemPure would be assembled near Victor Arena in Phune by 6:00 PM on 18th of
January, 2020. Kindly send appropriate vehicle for their commute on that particular
day. Regards Shama Vaidya, ZemPure Pharmaceuticals”

7. In response to the mail, Garrysons responded on 4th of January, 2020 stating:

“Dear ma'am, Happy New Year! We acknowledge the receipt of your mail. We would
be sending our double decker bus ‘Garry Deluxe’ which has a seating capacity of 90
people. Thank you and eagerly waiting to host the event successfully for you. Warm
Regards Jurez Sohail”

8. All the 88 employees of ZemPure assembled near Victor Arena at 6:00 PM to

board the bus to be sent by Garrysons so that they may reach the venue of the
event. However, the bus didn't arrive until it was 6:30 PM.

9. When the bus arrived, they saw that it was 'Garry Super' having a capacity of 80
people only.
10. To clarify regarding the same, Shama Vaidya went to the driver and asked him
that she had booked 'Garry Deluxe' and the same was communicated to her by the
secretary of Garrysons, Jurez.

11. To her surprise, the driver showed her the copy of the contract which stated 80-
90 people. Since they were already running late, without any further arguments,
80 of the employees boarded the bus and left for the venue of the event.

12. For the remaining employees, ZemPure had to book two cabs in an emergency
which cost them around Rs. 3500 each. However, two of the employees who were
about to bring almost 10 new potential clients left the place and didn't attend the
event.

13. Meanwhile, Shama Vaidya mailed to the Garrysons stating that "This is shameful
on part of the Garrysons that they have sent a bus with a capacity of 80 people
wherein they have agreed to send the bus with the capacity of 90 people."

14. The event was conducted but it wasn't a success everyone expected it to be
because of several reasons. One, many of the potential clients also left seeing that
the employees were not on time and the event was delayed from the scheduled
time. Two, many of the employees also left after they saw the clients leaving.

15. In the next one month, 20 of the company's employees left the job. This led to
further affecting the working of the company accounting for more losses to the
company.

16. The company never overcame this situation and the nation went into a
lockdown in the month of March, 2020. This further caused excruciating harm to
the company.
17. The demand for medicines and other products increased in this period and still
the company was not able to produce the same during that period and was not
able to make any profits rather their revenue decreased by more than 50%.

18. In the month of April, 2020 ZemPure requested Garrysons for a refund of
money paid for the event so that the business of ZemPure be restored to certain
extent and the business ties between these two companies continue.

19. However, in response to the same, Garrysons apologised for the late arrival of
the bus. Garrysons also stated that the same was due to heavy traffic on the
Moombai-Phune Highway that day due to the convoy of the Prime Minister who
was visiting Moombai that day. It was further pointed out that the bus was no
different from what was contained in the contract and therefore, the request for
any sort of refund was refused.

20. ZemPure did not take any action until they sent a legal notice to Garrysons on
16 May, 2022. The relevant portion of the notice is reproduced below:

“We, ZemPure Pharmaceuticals, hereby demand a sum of 2 crores INR due to

following reasons:
a) Damages for Breach of Contract: INR 7000
b) Loss of Future Earnings: INR 25,00,000
c) Loss in Business: INR 1 Crore
d) Loss of Reputation: INR 70,00,000
e) Legal Fees and other costs: INR 4,93,000

Failure to respond to the same within seven (07) days of the receipt of this notice
would lead us to take legal action against you before the appropriate forum.”
21. Garrysons did not respond to the legal notice and ZemPure filed a suit against
Garrysons before the Commercial Court of Phune on 30 May, 2022.

TO NOTE

The participants are required to frame the issues accordingly.

The laws of the Republic of Ephedia are pari materia to the laws of the
Republic of India.

CONTACT

For any queries regarding the event, please contact the following
student coordinators of the IDIA Jharkhand Chapter:

Co-Team Leader
Ataliya Kalam - ataliya.kalam@nusrlranchi.ac.in; 9934705699.

Deputy Team Leader

Anish Jandial - anish.jandial@nusrlranchi.ac.in; 84271 77847.