Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 32

SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

21010126010 & 21010126011

SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION,


2021

BEFORE THE HON’BLE SUPREME COURT OF INDUS

UNDER ARTICLE 21 OF THE INDIAN CONSTITUTION

IN THE MATTER OF

ORIGINAL SUIT NO _____/2021


NATURAL HEALTH CARE UNION.……………………………PLAINTIFF
TRUMPEST & CO………………………………………………DEFENDANT
HEARD ALONG WITH
SPECIAL LEAVE PETITION (SLP) NO ______/2021
BIDENCO INDUS LTD……………………………………………PLAINTIFF
TRUMPEST & CO …………………………………………………….DEFENDANT

MEMORIAL ON BEHALF OF THE PLAINTIFF/APPELLANT

Page | 1 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

TABLE OF CONTENTS

LIST OF ABBREVIATIONS

INDEX OF AUTHORITIES……………………………………………..……… IV

STATEMENT OF JURISDICTION…………………………………..………….IX

STATEMENT OF FACTS……………………………………………………...…X

STATEMENT OF ISSUES……………………………………………………….XI

SUMMARY OF ARGUMENTS……………………………………...…………XII

ARGUMENTS ADVANCED……………………………………………………...1

ISSUE 1: WHETHER TRUMPEST & CO. CAN BE HELD LIABLE FOR THE DAMAGES

CAUSED DUE TO THE LEAK OF URANIUM……………………1

[1.1] WETHER TRUMPEST & CO. IS NEGLIGENT.…………………………...1

[1.2] TRUMPEST & CO. IS LIABLE FOR PUBLIC NUISANCE……………….1

[1.3] WHETHER TRUMPEST & CO. IS STRICTLY LIABLE.………………….1

[1.4] TRUMPEST & CO. IS ABSOLUTELY LIABLE..………………………….1

ISSUE 2: WHETHER BIDENCO INDUS LTD IS ENTITLED UNDER THE CONTRACT

DATED FEBRUARY 14, 2021, TO REFUSE THE INVESTMENT OF 30 MILLION EUROS

FROM THE MONTH OF AUGUST 2021.

[2.1] THE CONTRACT DATED FEBRUARY 14, 2021 IS A CONTINGENT CONTRACT

[2.2] TIME FOR PERFORMANCE

[2.3] IMPOSSIBILITY OF PERFORMANCE AND FRUSTRATION

PRAYER……………………………………………………………………..…...21

Page | 2 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

LIST OF ABBREVIATIONS

ABBREVIATION FULL FORM

AIR All India Reporter

Anr. Another.

Art. Article

L.J. Law Journal

& And

H.C. High Court

Ors. Others

Ltd. Limited

S.C. Supreme Court

S.C.C. Supreme Court Cases

Hon’ble Honorable

v. Versus

Supp Supplementary

Com cases Company Cases

ILR Indian Law Reports

QB Queen’s Bench

u/s Under section

Page | 3 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

INDEX OF AUTHORITIES

CASES
Blyth v Birmingham Waterworks Company [1856] 11 Ex Ch 781, 156 ER 1047 pg 15

Donoghue v Stevenson [1932] A.C. 562 pg 15

Nettleship v Weston [1971] EWCA Civ 6, [1971] 2 QB 691 pg 16

Vaughan v Menlove [1837] 3 Bing NC 468 16

Ishwar Devi v Union of India AIR 1969 Delhi 183 16

Malton Board of Health v Malton Manure Co., [1879] 4 Ex D 302

Lambton v Mellish, [1894] 3 Ch 163

Lister’s Case, [1856] 1D & B 118

Att-Genl. v Proprietors of the Bradford Canal, [1866] LR 2 Eq 71

Ram Raj Singh v Babulal AIR 1982 All. 285

Ishwar Devi v Union of India AIR 1969 Delhi 183

The National Green Tribunal Act, 2010 Act No. 19 of 2010

St Helen’s Smelting Co. v Tipping [1865] 11 HLC 642

Radhey Shyam vs. Gur Prasad AIR 1978 All 86

Rylands v Fletcher [1868] LR 3 HL 330

Northwestern Utilities v London Guarantee and Accident Co. [1936] AC 108

MP Electricity Board v Shail Kumar AIR 2002 SC 55

Page | 4 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

Meghalaya State Electricity Board v Edentinora Mawthoh 2008 (1) GLT 732

West vs. Bristol Tramways Co., (1908) 2 K.B. 14.

T.C. Balakrishnan vs. T.R. Subramanian, A.I.R. 1968 Kerela 151.

Shiffman vs. Graud Priory, etc, (1936) 1 All. E.R. 557.

State of J And K And Or’s. vs Mohd. Iqbal AIR 2007 J K

Sochacki vs. Sas (1947) 1 All E.R. 344.

Box vs. Jabb (1879) 4 Ex. D 76.

M.C. Mehta v. Union of India (UOI) and Ors. 1987 SCR (1) 819; AIR 1987 965

Hoy v. Miller 2006 WY 147

Klaus Mittelbachert vs East India Hotels Ltd. AIR 1997 Delhi 201, 1999 ACJ 287

Union Carbide Corporation vs Union Of India 1990 AIR 273, 1989 SCC (2) 540

Jagdish And Ors. vs Naresh Soni And Ors 2007 (3) MPHT 234

Ishwar Devi v Union of India AIR 1969 Delhi 183

Chandulal Harjivandas v CIT, AIR 1967 SC 816, 818: (1967) 1 SCR 921, 925.

N. Peddanna Ogeti Balayyav Kotta V. Srinivasayya Setti Sons, AIR1954SC26.

Commr of Excess Profits Tax v Ruby General Insurance Co Ltd, AIR 1957SC669

Page | 5 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

Parvathammav Uma, AIR2011Kant 58

Rojasara Ramjibhai Dahyabhaiv Jani Narottamdas Lallubhai,(1986) 3 SCC300: AIR 1986

SC1912.

V.P. Desa v Union ofIndia, AIR 1958 MP 297.

Nandkishore Lalbhai Mehta v New Era Fabrics (P) Ltd, (2015) 9 SCC 755: AIR 2015 SC 3796.

Pameshwari Das Mehra v Ram Chand Om Prakash AIR 1952 Punj 34, 38.

R.K. Prasad J, Orissa Textile Mills Ltd v Ganesh Das, AljR. 1961 Pat 107

Bhudra Chand v Betts (1915) 22 Cal LJ 566: 33 IC 347.

China Cotton Exporters v Beharilal Ramcharan Cotton Mills Ltd AIR 1961 SC 1295

Wasoo Enterpriser v J.J. Oil Mills, AIR 1968 Guj 57.

INTERNATIONAL STATUTES

NEWSPAPER ARTICLE

ACTS

Section 31, The Indian Contract Act, 1872

The National Green Tribunal Act, 2010 Act No. 19 of 2010

CONSTITUTIONAL PROVISIONS

Article 21, Constitution of India, 1950

Article 32, Constitution of India, 1950

Article 12, Constitutiton of India, 1950

Article 48a, Constitution of India, 1950

Article 51g, Constitution of India, 1950

Page | 6 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

BOOKS

Ratanlal & Dheerajlal, Law of Torts 508

R.K Bhangia, law of Tort, (378-391).

Singh, A., 1994. Law of contract. 12th ed. Lucknow: Eastern Book Co.

ARTICLES

FOREIGN CASES

Quebec Railway, Light, Heat & Power Co. v Vandry Ll92Ql A.C. 662.

JOURNALS

REPORTS

A.L. Corbin, Recent Developments in Contracts, (1937) 50 Harv L Rev 549, 465-66.

Page | 7 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

STATEMENT OF JURISDICTION

ARTICLE 131. Subject to the provisions of this Constitution, the Supreme Court shall, to the

exclusion of any other court, have original jurisdiction in any dispute

(a) between the Government of India and one or more States; or

(b) between the Government of India and any State or States on one side and one or more

other States on the other; or

(c) between two or more States, if and in so far as the dispute involves any question

(whether of law or fact) on which the existence or extent of a legal right depends: 

Provided that the said jurisdiction shall not extend to a dispute arising out of any treaty,

agreement, covenant, engagement, sanad or other similar instrument which, having been entered

into or executed before the commencement of this Constitution, continues in operation after such

commencement, or which provides that the said jurisdiction shall not extend to such a dispute.

ARTICLE 32. (1) The right to move the Supreme Court by appropriate proceedings for the

enforcement of the rights conferred by this Part is guaranteed.

(2) The Supreme Court shall have power to issue directions or orders or writs, including writs in

the nature of habeas corpus, mandamus, prohibition, quo warranto and certiorari, whichever may

be appropriate, for the enforcement of any of the rights conferred by this Part.

(3) Without prejudice to the powers conferred on the Supreme Court by clauses (1) and (2),

Parliament may by law empower any other court to exercise within the local limits of its

jurisdiction all or any of the powers exercisable by the Supreme Court under clause (2). 

(4) The right guaranteed by this article shall not be suspended except as otherwise provided for

by this Constitution.

Page | 8 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

ARTICLE 136. (1) Notwithstanding anything in this Chapter, the Supreme Court may, in its

discretion, grant special leave to appeal from any judgment, decree, determination, sentence or

order in any cause or matter passed or made by any court or tribunal in the territory of India. 

(2) Nothing in clause (1) shall apply to any judgment, determination, sentence or order passed or

made by any court or tribunal constituted by or under any law relating to the Armed Forces.

Page | 9 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

STATEMENT OF FACTS

The Laws of Indus are pari-materia to the Laws of India.

In the month of June 2020, Trumpest & Co. claimed that they had

invented the vaccine for Mahamari (a contagious disease) and were

ready to go for trials. On January 28, 2021, it was declared by

Trumpest & Co. & the Government of Indus in a joint press

conference they were committed to providing vaccines. Following

which Bidenco & Trumpest & Co. established an agreement

wherein Bidenco would invest 30 million euros every month in

INTRODUCTION Trumpest & Co. and supply them with necessary quantities of

AND Uranium needed for storage and transportation of the produced

BACKGROUND vaccines while Trumpest & Co. would in return produce 100 million

doses of vaccine quarterly. On June 21, 2021, during the monthly

regulatory and supervisory visit of a joint team of WHO officials &

officials of Government of Indus one of the WHO officials

accidentally opened the ventilators & disposal system of the

Uranium Storage Area leading to a leak of Uranium around the site.

The residents of Pallet Town (the nearest populated area) and also

several plants and trees and animals were severely affected by the

leak. While so, Bidenco Indus Ltd. issued notice dated July 15,

2021, to Trumpest & Co. informing that Bidenco Indus Ltd. was no

longer liable to make its monthly investment.  Trumpest & Co. After

the High Court of Hoenn ruled in favour of Trumpest & Co. for

Page | 10 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

their suit against Bidenco Indus Ltd, the conglomerate filed an

appeal in the supreme court. 

A) NATURAL HEALTH CARE UNION

PARTIES TO THE B) BIDENCO INDUS LTD

DISPUTE C) TRUMPEST & CO

Natural Health Care Union, NGO registered under the laws of

Republic of Indus filed a suit before the Supreme Court of Indus

seeking compensation from Trumpest & Co. for the devastating

damage caused by the Uranium leak. Trumpest & Co. contested the

Public Interest Litigation on the grounds that they are entitled for the

defences available under the principle of strict liability. While so

Trumpest & Co. approached the H.C. of Hoenn seeking directions to


CAUSE OF ACTION
Bidenco Indus Ltd. to specifically perform its part of the contract.

Aggrieved by the court ruling in favour of Trumpest & Co, Bidenco

Indus Ltd. filed an appeal under Article 136 of the Constitution of

Indus before the Supreme Court of Indus. 

Public Interest Litigation filed by Natural Health Care

Union seeking compensation from Trumpest & Co. for the

devastating damage caused by the Uranium Leak.  Bidenco Indus


ACTION TAKEN BY
Ltd. filed a Special Leave Petition under Article 136. All cases
PARTIES
were clubbed together, to be heard before a Constitution Bench of

Hon’ble Supreme Court of Indus.

Page | 11 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

STATEMENT OF ISSUES

ISSUE 1: WHETHER TRUMPEST & CO. CAN BE HELD LIABLE FOR THE

DAMAGE CAUSED DUE TO THE LEAK OF URANIUM FROM ONE OF ITS

PRODUCTION SITES.

[1.1] WHETHER TRUMPEST AND CO. IS NEGLIGENT

[1.2] WHETHER TRUMPEST AND CO. IS LIABLE FOR PUBLIC NUISANCE

[1.3] WHETHER TRUMPEST AND CO. IS STRICTLY LIABLE

[1.4] TRUMPEST AND CO. IS ABSOLUTELY LIABLE

ISSUE 2: WHETHER BIDENCO INDUS LTD IS ENTITLED UNDER THE CONTRACT

DATED FEBRUARY 14, 2021, TO REFUSE THE INVESTMENT OF 30 MILLION

EUROS FROM THE MONTH OF AUGUST 2021.

[2.1] THE CONTRACT IS A CONTINGENT CONTRACT

[2.2] RESPONDENTS IMPOSSIBILITY TO PERFORM CONTRACT

Page | 12 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

SUMMARY OF ARGUMENTS

ISSUE 1: WHETHER TRUMPEST & CO. CAN BE HELD LIABLE FOR THE

DAMAGES CAUSED DUE TO THE LEAK OF URANIUM

Trumpest and Co. is liable to pay compensation to the residents of Pallet Town on account of

their negligence during the monthly regulatory and supervisory visit of a joint team of WHO

officials & officials of Government of Indus to one of the sites of production of Sanjeevini (the

vaccine) as well as the public nuisance caused due to many effected residents being diagnosed

with mental illnesses and permanent damage to their lungs as result of inhaling Uranium fumes

in addition to drastic damages to the local environment as several plants, trees and animals were

severely affected by the leak. Trumpest & Co. will be held absolutely liable and not strictly liable

as when a harmful object escapes (uranium leak), it might have disastrous consequences for

everyone and the company cannot make an exemption for an act of God or an act of a third

party.

ISSUE 2: WHETHER BIDENCO INDUS LTD IS ENTITLED UNDER THE CONTRACT

DATED FEBRUARY 14, 2021, TO REFUSE THE INVESTMENT OF 30 MILLION

EUROS

The contract between Trumpest & Co. and Bidenco Indus Limited is a contingent contract while

clause 13 of the contract stipulated that in case Trumpest & Co. failed to deliver the quantity of

doses as agreed by the end of each quarter, then Bidenco Indus Ltd. was entitled to immediately

stop the monthly investments to be made in Trumpest & Co. and as such the first press statement

by Trumpest & Co. stating the production of 100 million doses within 3 months was only

Page | 13 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

possible due the fact that the production happened on each and every day and that the production

was not even halted for a single day, thus indicating Trumpest & Co. had been strained in

meeting the first batch of 100 million doses that came to be delivered on June 01, 2021. On June

21, 2021, the leak of Uranium around a site of production of the vaccine caused it to immediately

shut down and production had to halted for 20 days. The lack of infrastructure to produce the

required number of vaccines in addition to production being halted for 20 days, it is foreseeable

that Trumpest & Co. would not be able to meet its obligation of supplying 100 million doses by

September 01, 2021. The letter of Bidenco Indus Ltd. dated July 15, 2021, was in accordance

with Clause 13 of the contract and that the High Court of Hoenn was incorrect in holding that

Bidenco Indus Ltd. was liable to invest 30 million euros for the month of August 2021 and invest

30 million euros every month thereafter.

Page | 14 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

ARGUMENTS ADVANCED

ISSUE 1: WHETHER TRUMPEST & CO. CAN BE HELD LIABLE FOR THE

DAMAGES CAUSED DUE TO THE LEAK OF URANIUM FROM ONE OF ITS

PRODUCTION SITES

It is humbly contended before the Hon’ble Supreme Court of Indus that the prayers sought for by

the petitioner Natural Health Care Union are maintainable. The prayer seeks damages from the

respondent Trumpest & Co. for the harm caused during the monthly regulatory and supervisory

visit of a joint team of WHO officials & officials of Government of Indus to one of the sites of

production. The claim is sought to be achieved on the following grounds:

[1.1] WETHER TRUMPEST & CO. IS NEGLIGENT

In the case of Blyth v. Birmingham Waterworks Co.1 Judge Alderson B. observed that

“Negligence is the omission to do something which a reasonable man, guided upon those

considerations which ordinarily regulate the conduct of human affairs, would do, or doing

something which a prudent and reasonable man would not do.”

The Neighbour Principle enunciated by Lord Atkin in Donoghue v Stevenson2 the essential

ingredients of negligence are as follows:

1. The defendant owed duty of care to the plaintiff

2. The defendant made breach of that duty

3. The plaintiff suffered damages as a consequence thereof.

1
Blyth v Birmingham Waterworks Company [1856] 11 Ex Ch 781, 156 ER 1047
2
Donoghue v Stevenson [1932] A.C. 562

Page | 15 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

[1.1.A] TRUMPEST AND CO. OWES DUTY OF CARE

In the above case of Donoghue v Stevenson2, the rule of duty of care was established as, “you

must take reasonable care to avoid acts or omissions which you can reasonably foresee would be

likely to injure your neighbour.”

Lord Atkin further defines a neighbour as “persons who are so closely and directly affected by

my act that I ought reasonably to have them in contemplation as being so affected when I am

directing my mind to the acts or omissions which are called into question.” Considering the

present case the residents of Pallet Town/ National Health Care Union are closely and directly

affected by the acts of the respondent, and therefore, it is humbly contended that the plaintiff is

owed reasonable care! to avoid actions that could cause grave injuries.

[1.1.B] TRUMPEST & CO. BREACHED DUTY OF CARE

From the case of Nettleship v West3 we determine that the most important general principle

regarding breach of care is the applicable standard of care is that of a reasonably competent

person undertaking the activity.4

In the case of Ishwar Devi v Union of India5, the court observed that the “safety of the public is

the primary concern of those who are in charge and in control”

In the present case, Trumpest & Co. took no preventative precautions to during the monthly

regulatory and supervisory visit of a joint team of WHO officials and officials of the

Government of Indus to one of the sites of production of the vaccine (Sanjeevini). When the

uranium leak

3
Nettleship v Weston [1971] EWCA Civ 6, [1971] 2 QB 691
4
Vaughan v Menlove [1837] 3 Bing NC 468

Page | 16 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

5
Ishwar Devi v Union of India AIR 1969 Delhi 183
occurred, it is contended that the accident endangered the public’s safety and caused severe

injuries to the residents of Pallet Town but also the local environment.

Hence it is humbly contended before this Hon’ble Court that the carelessness exhibited by

Trumpest & Co’s failure to prevent the uranium fume leak amounts to a probability and can be

expected to fail that standard of foresight expected of a prudent and reasonable man would

observe5, resulting in the breach of duty of care.

[1.1.C] TRUMPEST & CO. CAUSED DAMAGES

It is humbly contended before this Hon’ble Court that the injuries sustained by the residents of

Pallet town such as inhabitants being diagnosed with mental illness and permanent damage to

their lungs by inhaling Uranium fumes as well as various plants, trees and animals being harmed

are directly and conclusively caused by the Uranium fume leak at Trumpest & Co. amounts to

damages

[1.2.] TRUMPEST & CO IS LIABLE FOR PUBLIC NUISANCE

It is contended before this Hon’ble Court that Trumpest & Co. is also liable for causing Public

Nuisance.

Public Nuisance is defined as “an act affecting the public at large or some considerable portion

of it; and it must interfere with rights which members of the community might otherwise enjoy.

Acts which seriously interfere with the health, safety, comfort, or convenience of the public

generally or which tend to degrade public morals have always been considered public nuisance.

E.g. carrying on trades which cause offensive smells 6, or intolerable noises7, keeping an

inflammable substance like gunpowder in large quantities 8, drawing water in a can from a filthy

source9. They are dealt

Page | 17 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

6
Malton Board of Health v Malton Manure Co., [1879] 4 Ex D 302
7
Lambton v Mellish, [1894] 3 Ch 163
8
Lister’s Case, [1856] 1D & B 118
9
Att-Genl. v Proprietors of the Bradford Canal, [1866] LR 2 Eq 71
with by or in the name of the state.”10

Under section 268 of the Indian Penal Code a person is guilty of Public Nuisance, “who does any

act or is guilty of an illegal omission which causes any common injury, danger or annoyance to

the public or to the people in general who dwell or occupy property in the vicinity, or which

must necessarily cause injury, obstruction, danger or annoyance to persons who may have

occasion to use any public right.”11

In the cases of Ram Raj Singh v Babulal12, the defendant had created a stone crushing machine,

adjoining the plaintiff’s house. It was held that the plaintiff was able to prove that such activity

causes a problem at large and therefore it was a public nuisance and special damages were a

given to the plaintiff. In St Helen’s Smelting Co. v Tipping13, fumes from the defendant

company’s work damaged the plaintiff’s trees and crop. Such damage being an injury to

property, it was held that the defendant was liable. And in the case of Radhey Shyam vs. Gur

Prasad14 the defendant’s alleged to put a permanent injunction to restrain them from installing

and running of flour mill industry in the locality, as that would make already noisy locality

noisier. It was held that the installation of the machine would lead to unreasonable interference

on the plaintiff’s right.

Therefore, the Uranium leak at Trumpest & Co. amounts to Public Nuisance as the Act caused

common injury, endangered the residents of Pallet Town and annoyance to the people in general

who dwell and occupy property in the vicinity.

[1.3] WHETHER TRUMPEST & CO. IS STRICTLY LIABLE

It has been noted that in Rylands v Fletcher15, the House of Lords laid down the rule recognizing

Page | 18 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

10
Ratanlal & Dheerajlal, Law of Torts 508
11
Section 268, Indian Penal Code, 1860
12
Ram Raj Singh v Babulal AIR 1982 All. 285
13
St Helen’s Smelting Co. v Tipping [1865] 11 HLC 642
14
Radhey Shyam vs. Gur Prasad AIR 1978 All 86
15
Rylands v Fletcher [1868] LR 3 HL 330
‘No Fault’ liability. The liability recognized was ‘Strict Liability’, i.e., even of the defendant was

not negligent or rather, even if the defendant did not intentionally cause the harm or he was

careful he could still be made liable under the rule.16

The basis of the liability in the above case propounded by Blackburn J17 “We think that the rule

of law is, that the person for his own purposes brings on his lands and keeps there anything likely

to do mischief if it escapes, must keep it in at his peril, and if he does not do so, is prima facie

answerable for all the damage which is the natural consequences of its escape. He can excuse

himself by showing that the escape was owning to the plaintiff’s default, or perhaps that the

escape was the consequence of vis major, or act of God; but as nothing of the sort exists here, it

is unnecessary to inquire what excuse would be sufficient.”

In the present case Trumpest & Co. is not entitled for defenses available under strict liability on

account of Act of Third Party; for two reasons, the exemption does not apply here:

 In the current case since Trumpest & Co. may have foreseen the Third Party’s activities

(one of the WHO officials accidently opening the ventilators and disposal system of the

uranium storage area leading to a leak). The repercussions may have been prevented if

Trumpest & Co. had exercised reasonable care and due diligence.

 So long as the uranium needed for storage and transportation of the produced vaccines is

potentially hazardous and might endanger an individual’s life, it is Trumpest & Co’s

responsibility to take all necessary precautions to avoid any escape of such a dangerous

and radioactive substance.

Page | 19 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

In Northwestern Utilities v London Guarantee and Accident Co.18 the appellants were a public

16
R.K Bhangia, law of Tort, (378-391).
17
The rule was formulated by Blackburn J in Exchequer Chamber in Fletcher v Rylands, [1868] LR 1 Ex 265
18
Northwestern Utilities v London Guarantee and Accident Co. [1936] AC 108
utility company carrying gas at a high pressure. During construction a gas pipe leaked, resulting

in a fire. Since the operations of the city authorities were conspicuous and the danger of the gas

pipes could have been reasonably foreseen and guarded against, the failure to do that was

negligence and the appellants were held liable. In a decision of the Supreme Court in MP

Electricity Board v Shail Kumar19, the rule of strict liability was applied and defect of a

hazardous substance, the electricity through the transmission lines, the defense of an ‘act of the

stranger’ was not allowed as the same could have been foreseen. A similar judgement was passed

in Quebec Railway, Light, Heat & Power Co. v Vandry20. In the cases of Meghalaya State

Electricity Board v Edentinora Mawthoh21 and State of J And K And Or’s. vs Mohd. Iqbal22 it was

decided that the authorities undertaking an activity involving hazardous exposure to human life

were liable under the Law of Torts to compensate for the injury suffered by any other person in

respect of any negligence or carelessness in the part of the persons/authorities who undertook

such hazardous activity.

In the present case, it is contended before the Hon’ble Supreme Court that Trumpest and Co. had

foreseeability, the ability and duty to prevent the violating act in the case thus establishing that

Trumpest & Co. is not entitle to the defenses of Act of Third Party. It is further contended that

Trumpest & Co. is not Strictly Liable and can be held Absolutely Liable.

[1.4] TRUMPEST AND CO IS ABSOLUTELY LIABLE

It is humbly contended before the Hon’ble court that Trumpest & Co. is Absolutely Liable in the

present case.

In the landmark case of MC Mehta v. Union of India (UOI) and Ors.23 Justice P. N. Bhagwati

Page | 20 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

19
MP Electricity Board v Shail Kumar AIR 2002 SC 55
20
Quebec Railway, Light, Heat & Power Co. v Vandry Ll92Ql A.C. 662.
22
State of J And K And Or’s. vs Mohd. Iqbal AIR 2007 J K
23
M.C. Mehta v. Union of India (UOI) and Ors. 1987 SCR (1) 819; AIR 1987 965
propounded the principle of Absolute liability and meticulously observed; “We are of the view

that an enterprise which is engaged in a hazardous or inherently dangerous industry which poses

a potential threat to the health and safety of the persons working in the factory and residing in the

surrounding areas owes an absolute and non-delegable duty to the community to ensure that no

harm results to anyone on account of the hazardous or inherently dangerous nature of the activity

which it has undertaken.”24 The court earlier pointed out that this duty is ‘absolute and non-

delegable’ and the enterprise cannot escape liability by showing that it has taken all reasonable

care and there was no negligence on its part.

In Hoy v. Miller25, Justice Golden defined Absolute Liability with precision, ‘absolute liability is

a liability without fault – a liability for which there is no excuse’. The principle of Absolute

Liability is an inalienable part under Article 2126 and Article 3227 of the Indian Constitution, and

NGT Act 201028, under Section 17, incorporated the no-fault law. 

In MC Mehta v. Union of India (UOI) and Ors In this case, the claim was arising from the

leakage of oleum gas from the Shriram Food and Fertilizers Industries, as a consequence of this

leakage there was a huge loss of life and many people suffered from serious injuries. The case

was filed by a writ petition under art 32 of the Constitution by way of PIL. The application of

only Strict Liability came as a step-back for the Indian Justice System.  The judges refused to

apply the principle of Strict Liability and rendered it obsolete because it is ‘woefully inadequate’

to protect the rights of the citizens Thus an innovative remedy was evolved by the Supreme

Court, which was indirect recognition and application of the ‘polluter pays principle’.

The rule was formulated by PN Bhagwati J in Supreme Court of India in M.C. Mehta v. Union of India (UOI) and
24

Ors. 1987 SCR (1) 819; AIR 1987 965

Page | 21 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

25
Hoy v. Miller 2006 WY 147
26
Article 21, Constitution of India, 1950
27
Article 32, Constitution of India, 1950
28
The National Green Tribunal Act, 2010 Act No. 19 of 2010
Absolute liability was thus articulated. The Court also made the measure of accountability

compatible with the capacity of the enterprise. This pronouncement was later upheld in Charan

Lal Sahu v. Union of India29.

In Union Carbide Corporation v Union Of India30 the doctrine of Absolute Liability was upheld

in the infamous Bhopal gas tragedy which took place between the intervening night of 2nd and

3rd December 1984. Leakage of Methyl-iso-cyanide (MIC) poisonous gas from the Union

Carbide Company in Bhopal, Madhya Pradesh led to a major disaster and over 3000 people lost

their lives.

There was a heavy loss to property, flora, and fauna. The effect was so grave that even today

when children are born, they have deformities. The Government of India enacted the Bhopal Gas

Disaster (Processing of Claims) Act, 1985 and sued the company for damages on behalf of the

victims. The court applying the principle of Absolute Liability held the company liable and

ordered it to pay compensation to the victims.

In the case of LG Polymers (India) (P) Ltd v AP Pollution Control Board 31 On May 7th, 2020, a

polymer plant of the LG Polymers India Private Limited leaked Styrene Gas, killing 11 [eleven]

people. On prima facie analysis of the cause, it appeared that the leak was a result of the failure

of the company to meet the compliances entailed in the ‘Manufacture, Storage and Import of

Hazardous Chemical Rules. 1989’, which in effect requires a company to maintain certain

emergency plans for preventing onsite and offsite damages to the plant and its surroundings.

Vide the Interim order passed by the Tribunal, the company was made to follow the penalties of

the Polluter Pays Principle, and the Strict Liability Principle only. In taking into account the

mass casualty of the Bhopal Gas Tragedy, and the similar circumstances under which this

Page | 22 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

incident occurred, the court should have applied the principle ordered in the preceding case, of

‘Absolute
29
Charan Lal Sahu v. Union of India 1988 AIR 107, 1988 SCR (1) 441
30
Union Carbide Corporation vs Union Of India 1990 AIR 273, 1989 SCC (2) 540
31
LG Polymers (India) (P) Ltd v AP Pollution Control Board [2020] 6 SCC 619
Liability’ in the case. In Indian Council for Enviro-legal Action vs. Union of India32 an PIL filed

under Article 32 of the Indian Constitution voiced protests of the petitioners over the presence of

industries that was causing large scale environmental pollution and endangering the lives of the

villagers who resided in the vicinity of the industries. It violated their right to life and liberty

given under Article 21of the Indian Constitution 33 action and ordered the Central Government

and the Pollution Control Board to constitute strict measures against the said industries. The

court upheld the Doctrine of Absolute Liability here stating that the polluted environment must

be restored to a pollution free one conducive for healthy living by utilizing anti-pollution

scientific appliances. The expenditure so incurred in this process must be paid by the industries

even if their properties need to be attached for this purpose. The industries were made absolutely

liable for paying monetary damages for restoration of the environment.

The bases of Absolute Liability as indicated by the Supreme Court are two:

 If an enterprise is permitted to carry on a hazardous or inherently dangerous activity for

its profits, the law must presume that such permission is conditional on the enterprise

absorbing the cost of any accident arising on account of such hazardous or inherently

dangerous activity as an appropriate item of its over heads.

 The enterprise alone has the resource to discover and guard against hazards or dangers

and to provide warnings against potential hazards.

In the present case it is humbly contended before the Hon’ble Court that Trumpest & Co. is

Absolutely Liable as being a company that deals in production of life saving drugs and is a

Page | 23 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

dominant player in the market its utilization of industrial grade uranium as a cooling agent for

the vaccines comes under the prerequisite of absolute liability, thus Trumpest & Co.

conditionally

32
Indian Council for Enviro-legal Action vs. Union of India, AIR 1996 SC 144
33
Article 32, Constitution of India, 1950
must absorb the cost the uranium leak in the form of compensation to the residents of Pallet

Town. Trumpest & Co. should have undertaken provision to safeguard against foreseeable and

potentially hazardous activities.

ISSUE 2: WHETHER BIDENCO INDUS LTD IS ENTITLED UNDER THE CONTRACT

DATED FEBRUARY 14, 2021, TO REFUSE THE INVESTMENT OF 30 MILLION

EUROS FROM THE MONTH OF AUGUST 2021.

It is humbly contended before the Hon’ble Supreme Court of Indus that the prayers sought for by

the petitioner Bidenco Indus Limited are maintainable. The prayer seeks appeal against the order

of the High Court of Hoenn to perform its part of the contract and duly investing 30 million

euros for the month of August, 2021 and 30 million euros every month thereafter to the

defendant Trumpest & Co. The appeal is sought to be achieved on the following grounds:

[2.1] THE CONTRACT DATED FEBRUARY 14, 2021 IS A CONTINGENT CONTRACT

Under section 31 of the Indian Contracts Act 187234 defines a “Contingent contract” as “—"a

contract to do or not to do something, if some event, collateral to such contract, does or does not

happen.”

In the present case the contract between Bidenco Indus Ltd and Trumpest & Co states that only

following the quarterly delivery of the 100 million doses of the ‘Sanjeevini’ vaccine would

Page | 24 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

Bidenco Indus Ltd invest 30 million euros every month. Based upon the reciprocal promise of

the contract and definition cited from the Indian contracts act, The contract dated February 14

2021 is a contingent contract governed under Sections 31 to 36 of the Act.


34
Section 31, Indian Contracts Act,1872

[2.1.A] SECTION 32 OF INDIAN CONTRACTS ACT

Under section 32 of the Indian Contracts Act 187235 two basic principles are established. First, a

contract to do an act on the happening of a future uncertain condition cannot be enforced unless

and until that event happens." Second, if the happening of that event has become impossible, the

contract becomes void.

In the case of V.P. Desa v Union of India36 where a car was insured against loss in transit, the car

was damaged without being put in the course of transit, the insurer was held to be not liable. The

contract would also not be enforceable where the event does not happen in the way contemplated

by the contract.

In Nandkishore Lalbhai Mehta v New Era Fabrics (P) Ltd37, A contract for the sale of land with

a factory was to be performed only if the labor unions agreed to the sale and further if the change

of land use was approved by the appropriate authority. None of these contingencies could be

fulfilled because neither there was approval by the labor unions nor by the relevant authority.

The contract was accordingly not allowed to be enforced against the seller.

In the current case, the anticipated inability of Trumpest & Co. to meet its obligation of

supplying 100 million doses by September 01, on account of the production process having been

halted in one of its sites for 20 days, renders the contract unenforceable.

[2.1.B] SECTION 35 OF INDIAN CONTRACTS ACT

Section 35 of the Indian Contracts Act 187238 states “When contracts become void, which are

contingent on happening of specified event within fixed time.”

Page | 25 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

Thus, in the present case, the first press statement by Trumpest & Co. stating the production of
35
Section 32, Indian Contracts Act, 1872
36
V.P. Desa v Union of India, AIR 1958 MP 297.
37
Nandkishore Lalbhai Mehta v New Era Fabrics (P) Ltd
38
Section 35, Indian Contracts Act,1872
100 million doses within 3 months was only possible due the fact that the production happened

on

each and every day and that the production was not even halted for a single day, thus indicating

Trumpest & Co. had been strained in meeting the first batch of 100 million doses that came to be

delivered on June 01, 2021. On June 21, 2021, the leak of Uranium around a site of production of

the vaccine caused it to immediately shut down and production had to halted for 20 days. The

lack of infrastructure to produce the required number of vaccines in addition to production being

halted for 20 days, it is foreseeable that Trumpest & Co. would not be able to meet its obligation

of supplying 100 million doses by September 01, 2021. Thus, It is contended before the Hon’ble

Supreme Court that after considering the pertinent facts of the case Trumpest & Co would not

have

been able to the delivery by September 01, 2021 being the fixed time as stipulated in the contract

and agreed upon by both parties, rendering the given event impossible and the contract

ultimately void. The failure of a contingent contract is due to non-happening of an anticipated

event.

[2.2] TIME FOR PERFORMANCE

The parties to a contract specify the time for its performance. Ordinarily it is expected that either

party will perform his obligation at the stipulated time. But if one of them fails to do so, the

question arises what is the effect upon the contract. Under Section 55 of Indian Contracts Act

187239,” Effect of failure to perform at fixed time, in contract in which time is essential. —When

a party to a contract promises to do a certain thing at or before a specified time, or certain things
Page | 26 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT
SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

at or before specified times, and fails to do any such thing at or before the specified time, the

contract, or so much of it as has not been performed, becomes voidable” According to this

section, if the intention of the parties was that time should be the essence of the contract, then a

failure to perform at the agreed time renders the contract voidable at the option of the opposite

party.
39
Section 55, Indian Contracts Act, 1872

Time is generally considered to be of the essence of the contract in the following three cases:

 Where the parties have expressly agreed to treat it as of the essence of the contract;

 Where delay operates as an injury;

 Where the nature and necessity of the contract requires it to be so construed, for

example, where a party asks for extension of time for performance."40

The well-known authority is Bhudra Chand v Betts41 The plaintiff stipulated with the defendant

to engage his elephant for the purpose of Kheda operations (to capture wild elephants). The

contract provided that the elephant would be delivered on the 1st October, 1910; but the

defendant obtained an extension of time till the 6th October and yet did not deliver the elephant

till the 11th. The plaintiff refused to accept the elephant and sued for damages for the breach. He

was held entitled to recover as the parties intended that time should be of the essence of the

contract. "This conclusion is confirmed by the circumstance that the defendant obtained an

extension of the time; if the time were not of the essence of the contract, he need not have asked

for extension of time."42

A leading Supreme Court authority is China Cotton Exporters v Beharilal Ramcharan Cotton

Mills Ltd.43 The appellants who carried on an import business at Bombay contracted to supply to

the respondent mill a quantity of Italian staple fibre cotton. The shipment was to take place in

Page | 27 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

October or November. The contract concluded by the remark: "This contract is subject to import

licence and therefore the shipment date is not guaranteed". A part of the goods was supplied and

accepted, but the rest were not supplied in the time mentioned. The buyer wanted to avoid the

contract on this ground. It was held that in spite of the remark that shipment date was not

guaranteed, time was of the essence and the buyer was entitled to avoid the contract. In a similar

case before the Gujarat


40
R.K. Prasad J, Orissa Textile Mills Ltd v Ganesh Das, AljR. 1961 Pat 107
41
Bhudra Chand v Betts (1915) 22 Cal LJ 566: 33 IC 347.
42
Mookerjee J at p. 567. Followed in Colles Cranes of India Ltd v Speedeo Spares Corpn, AIR 1970 Cal 321.
43
China Cotton Exporters v Beharilal Ramcharan Cotton Mills Ltd AIR 1961 SC 1295.
High Court Wasoo Enterpriser v J.J. Oil Mills 44 The undertaking was to ship by a particular ship

in August, 1954. The plaintiff failed to ship in August and on their request the defendants

extended the time to September 10. The plaintiffs failed to make good their default even within

the extended time and, therefore, the defendants finally repudiated the contract. The plaintiff

sued them for breach. Bhagwati J, following China Cotton Exporters, above, held that the time of

shipment was of the essence and it was the plaintiff and not the. defendants who were guilty of

breach. An application for extension of time does not take effect unless accepted and the fact that

an extension for a week was offered would not amount to a waiver within the meaning of Section

63 of the right to insist upon the stipulated time

In the present case the contract to that effect came to be executed on February 14, 2021, between

Bidenco Indus Ltd. and Trumpest & Co. wherein it was agreed upon by both parties that the

production would begin from 1st of March 2021 and the first batch 100 million doses would be

delivered by June 01, 2021, and subsequent batches after every 3 months from June 01, 2021.

This cycle was to continue for a period of 5 years, during which time period Bidenco Indus Ltd.

Would invest 30 million euros in Trumpest Co. every month. And noticeably, clause 13 of the

contract stipulated that in case Trumpest & Co. failed to deliver the quantity of doses as agreed

Page | 28 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

by the end of each quarter, then Bidenco Indus Ltd. was entitled to immediately stop the monthly

investments to be made in Trumpest & Co. It is evident that time is the essence of the disputed

contract.

Thus It is humbly contended before this Hon’ble Court that the contract that exists between

Bidenco Indus Ltd and Trumpest & Co. is based upon the essence of time and the anticipated

delay in this case was due to Trumpest & Co’s inability to supply the 100 million vaccines in

time are vaild grounds for Bidenco Indus Ltd to halt the payments and Trumpest & Co.’s actions

amounting

44
Wasoo Enterpriser v J.J. Oil Mills, AIR 1968 Guj 57

to breach leading the inevitable damages.

[2.3] IMPOSSIBILITY OF PERFORMANCE AND FRUSTRATION

Under Section 56 of the Indian Contracts Acts 187245 lays down the simple principle that "an

agreement to do an act impossible in itself is void"

There are Specific grounds of frustration "The principle of frustration of contract, or of

impossibility of performance is applicable to a great variety of contracts. It is, therefore, not

possible to lay down an exhaustive list of situations in which the doctrine is going to be applied

so as to excuse performance. The law upon the matter is undoubtedly in process of evolution."1

In the present case the contract dated February 14 2021 states that only following the quarterly

delivery of the 100 million doses of the ‘Sanjeevini’ vaccine would Bidenco Indus Ltd invest 30

million euros every month. Based upon the facts of the case; Trumpest & Co. while delivering

the

first batch on June 01, 2021, issued a press statement that the production of 100 million doses

within 3 months was only possible due the fact that the production happened on each and every

Page | 29 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

day and that the production was not even halted for a single day and would not be able to meet

its obligation of supplying 100 million doses by September 01, on account of the production

process having been halted in one of its sites for 20 days. The appeal is maintainable under

Section 56 of the Indian Contracts Acts 1872.

[2.3.A] CHANGE OF CIRCUMSTANCES

In the case of Pameshwari Das Mehra v Ram Chand Om Prakas46 Kapur J of the Punjab High

Court stated,” a contract will frustrate "where circumstances arise' which make the performance

of the contract impossible in the manner and at the time contemplated.”

45
Section 56 of the Indian Contracts Acts 1872
46
Pameshwari Das Mehra v Ram Chand Om Prakash AIR 1952 Punj 34, 38.
And further explained the principle thus: "It is clear that if there is entirely unanticipated change

of circumstances the question will have to be considered whether this change of circumstances

has affected the performance of the contract to such an extent as to make it virtually impossible

or even extremely difficult or hazardous.”

It is humbly contended before the Hon’ble Court that Trumpest & Co’s lack of infrastructure to

produce the desired number of vaccines and the 20-day halt on production due to a uranium leak

the delivery of the 100 million vaccinees by the stipulated date can be foreseeably not met. Thus

acting as just grounds for the appeal by Bidenco Indus Ltd.

Page | 30 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

PRAYER

Wherefore, it is humbly prayed to this Hon’ble court that in the light of issues raised, arguments

advanced, and authorities cited may this Hon’ble Court be pleased to declare/adjudge/hold that:

1. Maintain that Trumpest & Co. n is liable to pay compensation for the damages caused to

the residents of Pallet Town

2. Dismiss any counter suit made by Trumpest & Co. to avail defenses available under the

principle of strict liability

3. Declare that the contract between Bidenco Indus Ltd and Trumpest & Co. made voidable

by Bidenco Indus Ltd was in accordance with Clause 13 of the contract and that the High

Court was incorrect in holding Bidenco Indus Ltd liable to pay further investments

AND/OR

Pass any other Order, Direction, Relief that it may deem fit in the Best Interests of

Page | 31 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT


SYMBIOSIS LAW SCHOOL, PUNE- NOVICE MOOT ELIMINATION, 2021

Justice, Fairness, Equity and Good Conscience.

For this Act of Kindness the Plaintiff and Appellant shall duty bound forever pray

Sd/-

Counsel for the

Plaintiff/Appellant

Page | 32 MEMORANDUM ON BEHALF OF THE PLAINTIFF/APPELLANT

You might also like