Professional Documents
Culture Documents
TC07P
TC07P
TC07P
Before
THE HIGH COURT OF
UTTAR PRADESH
TABLE OF CONTENTS
1_LIST OF AUTHORITIES 4
2_LIST OF ABBREVIATIONS 4
3_STATEMENT OF JURISDICTION 6
4_SUMMARY OF FACTS 7
i. The background 7
ii. The contracts and their performance 7
iii. Legal aspect 7
5_ISSUES RAISED 9
i. Whether there is a valid contract between M/s. Madhwa and Madhwa and Mr. VarunDhawan? 8
ii. Whether the judgment passed in Mohori Bibee v. Dharmodas Ghose needs reconsideration? 8
iii._ Whether the District Court of Lucknow was correct in rejecting the plea of restitution? 8
6_SUMMARY OF ARGUMENTS 10
7_ARGUMENTS ADVANCED 12
With respect to _iss. i._Whether there is a valid contract between M/s. Madhwa and Madhwa and Mr.
VarunDhawan? 12
1.1. First contract for construction of ultra modern architectural marvel. 12
1.2 Second contract, when the defendant failed to provide his part of consideration 12
1.3. Third contract for performing on a birthday party 14
1.4. Fourth contract for paying the debt in installments. 15
1.5. To address the allegations of using substandard material in constructing. 16
With respect to_iss. ii_Whether the judgment passed in MohoriBibee v. DharmodasGhose needs
reconsideration? 17
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2.1-Misuse of law_____________________________________________________________________17
2.2
16 Potential Criticism 17
17
2.3 Contemporary Relevance in modern times 17
2.6 International Comparisons 18
2.7 Balancing Protections: 18
2.8 Legislative Reform 18
2.9 Lack of Guidance on Modern Contract Issues 18
2.10 Lack of Clarity on Restitution 18
2.11 Inflexible Treatment of Minors 18
2.12 Historical Context 19
2.13 Undue Influence 19
2.14 Doctrine of Estoppel 19
2.15 Legal Interpretations 19
With respect to _Iss iii_ whether the district court of Lucknow was correct in rejecting the plea of
restitution 20
8_PRAYER 22
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LIST OF AUTHORITIES
5. LAWS
The Indian Contract Act 1872
The Specific relief act 1963
The Code of Civil Procedure 1908
6. Cases
Khan Gul v. Lakha Singh, ILR (1928) 9 Lah 701: AIR 1928 Lah 609
Jagar Nath Singh v. Lalta Prasad, ILR (1908-10) 21 All 21
Kundan Bibi v. Shree Narayan, (1906) 11 CWN 135
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LIST OF ABBREVIATIONS
1. Art. Article
2. & and
3. Sec. Section
4. Vol. Volume
5. Iss. issue
7. HC High Court
9. SC Supreme Court
15. Ed Edition
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STATEMENT OF JURISDICTION
The petitioner has approached the Hon’ble court under Section 96(2) of the code of civil procedure, 1908.1
1
Section 96 Appeal from original decree , The Code Of Civil Procedure,1908
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SUMMARY OF FACTS
Background
The respondent, Varun Dhawan, was a young sixteen - year old, talented singer and citizen of Indiana.
After having received the “Sensational Voice of the Nation” award, he aspired to develop a music career.
He wanted to release a fusion album combining different genres and to engage in world music tours. To get
funding for the same, he wanted to have a multi-purpose, ultra-modern architectural marvel, built. Wherein
he could have his recording studio, a theatre for live musical performances and, to extend his connections to
the music producers- a roof-top pool for hosting parties. He misrepresented himself as a major and put the
task out to tender. The Appellant firm, M/s Madhwa & Madhwa was a leading building constructor and
infrastructure provider, agreed to build the required place.
After the completion of the construction, the respondent Varun organized a party in the same building
wherein he invited some big names in the music industry. The party was a success and the intention with
which it was organized was fulfilled, Veena Production agreed to fund his fusion albums and the tours.
The respondent kept reassuring the appellant Madhwa&Madhwa that he would pay the whole amount of
₹7,00,000 back to them like when he made a statement to the manager of M/s Madhwa&Madhwa, Ms. Alia
Sen - “Madam, you have saved my career. Don’t worry about Rs.7,00,000/-.” But after the release of his
albums, it turned out that people didn't like his fusion music that much, and the respondent, Varun expressed,
his inability to pay the due amount.
Thereafter, Ms. Alia Sen presented him with an alluring offer that if he performs at her daughter’s birthday
party then his debt will be excused, since the party didn't just have family and friends invited but there were
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certain rich people as well, who could help the company in securing more building contracts. However,
Varun was unable to sing at the party because he had a serious sore throat.
All the above dealings were conducted under the false pretext made by Varun about his age. But then came
his 18th birthday and he acknowledged the debt he owed to the builders and both the parties agreed that
respondent Varun would pay the amount of ₹7,00,000. in easy installments of ₹20,000.
Then after a while, Varun started claiming that the material used in the construction was not of adequate
standard and, all of a sudden, not satisfactory. And that, according to his calculations, the money spent on
building earlier was just ₹3,000,00., therefore, according to him, he had already paid the amount.
The respondent, Varun, then decided to sell off the property, which is technically the basis for the existing
dispute between the parties.
Legal action
When the appellant Madhwa&Madhwa got to know about the respondent Varun’s foul play, they got a legal
notice issued which ordered Varun to pay back the pending sum of ₹7,00,000 within 15 days.Varun did not
act upon such notice and neither did he care to reply.
M/s Madhwa&Madhwa finally decided to seek remedy in the court of law, after being unsuccessful in all
diligent steps taken to recover a loan from Varun. They pled the district court for an injunction restraining
the selling off of the mentioned property and also demanded restitution. But their plea was rejected since in
the eyes of the court, the contract was void ab initio. Upholding the judgement given in the case of
MohoriBibee v Dharmodas Ghosh, the court gave the firm no remedy because of Varun’s incompetence to
contract in the first place.
However, finally, Madhwa&Madhwa, appealed to the High Court of Uttar Pradesh, which passed the
decree of injunction restraining Varun from selling the property and decided to hear the case on the merits.
The proceedings for the same are in process.
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ISSUES RAISED
1. Whether there is a valid contract between M/s. Madhwa and Madhwa and Mr.
VarunDhawan?
3. Whether the District Court of Lucknow was correct in rejecting the plea of
restitution?
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SUMMARY OF ARGUMENTS
Issue 1
Whether there is a valid contract between M/s. Madhwa and Madhwa and Mr. VarunDhawan?
It is very much clear here that the appellant was unaware of the very fact that the respondent was still
a Minor when such contract was made. The respondent knowingly misrepresented his age in order to
get relief from any liabilities that could’ve been faced by him in future. In the first agreement,
respondent promised to pay back the amount of Rs.7,00,000 that the appellant spent from their own
pockets on the request of the respondent himself. The respondent promised to pay the said amount
after the release of his music album. But the respondent denied payment on the ground that his album
didn’t do well. Then the manager of the appellant firm, Ms. Alia Sen gave the respondent an alluring
offer that he could perform at her daughter’s birthday party and in return, he would be relieved of his
debt. But Mr. Varun, the respondent failed to perform at the birthday party since he had a sore throat.
The cases of Khan Gul vs. Lakha Singh1, Jagar Nath Singh vs. Lalta Prasad2, along with the
provisions under section 31 and 33 of specific relief act 1963, put forth that the respondent is indeed
liable to at least restitute the parties and since he knowingly misrepresented his age, he cannot freed
from the responsibility of paying back the debt, that he owes to the appellant. At last, on respondent’s
18th birthday, he accepted that he owed ₹700000 to the appellant firm and agreed to pay the sum back
in easy installments of ₹20000. It is to be noted here that the parties have changed tags, earlier they
were promisor and Promisee due to the earlier agreement defaulting as void ab initio, but now the
parties had become debtor and creditor. Thus, this forms a new agreement, which is completely
enforceable. This view is supported by the case of Kundan Bibi vs. Shree Narayan3. Further,
section73 of the ICA which talks about compensation by the party to the contract which defaults,
supports the view that the appellant is entitled to restitution as well as damages caused. As far as the
allegations regarding the material that was used in the construction being substandard, these are all
baseless. Such allegations on a leading firm invite the consequences of defamation.
Issue 2
Whether the judgment passed in Mohori Bibee v. Dharmodas Ghose needs reconsideration?
These laws, designed to protect minors, can sometimes have unintended consequences, as minors
may misrepresent themselves to escape unfavorable contracts, thereby undermining the principle of
1
Khan Gul v. Lakha Singh,ILR(1928) 9 Lah 701:AIR 1928 Lah 609
Jagar Nath Singh v. Lalta Prasad,ILR,(1908-10)21 ALL 21
2
3
Kundan Bibi v. Shree Narayan (1906) 11 CWN 135
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equity. This raises potential criticisms that such judgments might deter parties from entering contracts
with minors, even when minors deliberately misstate their age for personal gain. In today's era, where
minors have greater access to information and technology, it becomes pertinent to reevaluate whether
uniform protection for all minors remains suitable or if exceptions should be made for those who
demonstrate a reasonable understanding of contracts. The evolving economic landscape, including
minors participating in entrepreneurship and online commerce, necessitates adjustments in the
application of these laws while ensuring adequate protection. Furthermore, social and cultural
changes have influenced how people perceive and engage in contracts, calling for a reexamination of
strict legal standards. Looking at international comparisons, cases like Hogan v. Midland Realty and
Phillips v. Thompson offers valuable lessons for Indian courts in handling similar situations. Finding
abalance between safeguarding minors and allowing them to engage in legitimate transactions
without undue hindrance is essential. As contract law and societal norms have evolved, it's crucial to
adapt these laws and interpretations to meet the demands of the present day, taking into account the
changing landscape of contracts and the protection of minors.
Issue 3
Whether the district court of Lucknow was correct in rejecting the plea of restitution?
The council requests the Hon'ble court to grant restitution. The case involves separate contracts
entered into by the respondent: one as a minor and the other after attaining the age of eighteen, which
is considered valid under the Indian Contract Act. The appellant alleges that the respondent,
through willful misrepresentation of his age, induced them to invest a significant sum, later refusing
repayment. In pursuit of equity and justice, the council cites the Indian Specific Relief Act of 1963,
which places the defendant, in this case, the respondent, under liability to restore benefits received if
the agreement is void due to the defendant's incompetence to contract. Several precedent-setting cases,
such as Khan Gul v. Lakha Singh4 and Jagar Nath Singh v. Lalta Prasad5, emphasizes the
principle of restitution when a minor benefits from misrepresentation. Hence, the council implores the
Hon'ble court to compel the respondent to restore the benefits received from the appellant,
emphasizing the overarching principle that those who come into equity must do so with clean hands.
In this view, the decision of the district court of rejecting the plea of restitution was not correct and
was unfair.
4
Khan Gul v. Lakha Singh,ILR(1928) 9 Lah 701:AIR 1928 Lah 609
5
Jagar Nath Singh v.Lalta Prasad,ILR (1908-10)21 All 21
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ARGUMENTS ADVANCED
Issue 1.
Whether there is a valid contract between M/s. Madhwa and Madhwa and Mr. Varun Dhawan?
It is to be carefully considered here that there was not one transaction that took place between the two
parties to the contract. It all started from a misrepresentation made by the defendant about his age and
pretended to be a major while still was underage and issue a tender for the building of a multi-purpose, ultra-
modern architectural marvel which he could use for the purpose of building his musical career and hosting
parties in which he wanted to invite top music directors, producers and other renowned individuals in the
music industry. The said contract was for ₹. 10,00,000 with amenities as consideration from the defendant.
The second contract arose when the defendant failed to provide the money and amenities which he had
contracted with the plaintiff for the construction and he requested the plaintiff to use money for the said
purpose from his own that was ₹. 7,00,000 and promised to return the money after his album is released.
The third contract arose when the defendant agreed to perform on the birthday party of the daughter of the
manager of the plaintiff but couldn’t due to his claimed sore throat.
And the last contract arose when the defendant acknowledged the debt he owe to the plaintiff and agreed to
pay the debt of ₹. 7,00,000 in EMIs of ₹. 20,000 till the amount debt is recovered by making alterations in
the first contract on his eighteenth birthday.
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complete their part of the contract. And for that they spent ₹. 7,00,000 from their own from the
contracted amount of ₹. 10,00,000.
1.2. Second contract when the defendant failed to provide his part of consideration (i.e
remaining amount of ₹. 7,00,000)
This contract arose when the respondent failed to perform his part of the agreement of providing the
appellant with the contracted amount and amenities required and asked to use the requisite amount from
their own. The respondent promised to pay the unpaid amount after the release of the album but didn’t.
The fact that the fusion album made by the respondent flopped disastrously shouldn’t be seen as a reason
for non payment of remaining the amount because the respondent never mentioned that he will repay the
amount upon the success of his fusion album but after the release of it. There is no such express mention
of this condition and therefore, the promise made by the respondent should be seen as it is.
It is worth mentioning here that, the respondent had already got a big deal from Veena Producers who
agreed with the respondent to fund his fusion album and world tours. Therefore, the respondent
cannot claim that he was totally dependent upon the success of his album and still could’ve paid at
least a part of debt if not the full amount.
In the case of Khan Gul v. Lakha Singh6, where the defendant, while still a minor, by fraudulently
concealing his age contracted to sell a plot of land to the plaintiff and received the consideration of ₹.
17,500 and then refused to perform his part of the bargain, the Lahore High Court ordered the minor to
refund the consideration he received. The judge in this case Sir SHADILAL, while referring to sections
39 and 41 of the Specific Relief Act, 1877 (now Sections 31 and 33 of Specific Relief Act 1963),
remarked, “The Doctrine of Restitution is not however confined to cases covered by these sections. The
doctrine rests upon the salutary principle that an infant cannot be allowed by a court of equity to take
advantage of his own fraud.”
Again, in the case of Jagar Nath Singh v. Lalta Prasad7, the Allahabad High Court ruled, “Where a
person who are in fact underage induces others to purchase property from them, they are liable in
equityto make restitution to the purchasers for the benefit they have obtained before they can recover
possession of the property sold.”
The Law Commission of India also preferred the view of Sir Shadilal Cj. And after the introduction of
doctrine of Restitution under Section 33 of the Specific Relief Act, 1963, it has now become
inevitable to avoid any liability for minors.
7
Jagar Nath Singh v.Lalta Prasad,ILR (1908-10)21 All 21
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“(1) On adjudging the cancellation of an instrument, the court may require the party to whom such
relief is granted, to restore, so far as may be any benefit which he may have received from the other
party and to make any compensation to him which justice may require.
(2) Where a defendant successfully resists any suit on the ground—
(a) That the instrument sought to be enforced against him in the suit is voidable, the court may if the
defendant has received any benefit under the instrument from the other party, require him to restore,
so far as may be, such benefit to that party or to make compensation for it;
(b) That the agreement sought to be enforced against him in the suit is void by reason of his not having
been competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 1872), the court
may, if the defendant has received any benefit under the agreement from the other party, require him
to restore, so far as may be, such benefit to that party, to the extent to which he or his estate has
benefited thereby.”
The said circumstances could be traced under clause (b) of sub-section (2) of Section 33 of
theSpecific Relief Act, 1963
It is key to note here as well that the respondent also promised to pay the remaining amount to the
manager of the appellant firm after having a successful pool party, but again failed to repay so.
Thus, it is humbly submitted before the Hon’ble court that the respondent here has failed to pay the
agreed amount to the appellant and he cannot escape liability either by asserting to be a minor or by
calling the consideration to be based on a contingent event.
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he will pay the remaining debt of ₹. 7,00,000 in Easy monthly installments (EMI) of ₹. 20,000 till the
amount of ₹. 7,00,000 is recovered by the appellant firm.
But the respondent, after failing to pay the installments he agreed to pay, started finding places to hide
behind by pointing out on the material used and by terming it as substandard and not satisfactory.
This is to be made clear that the agreement he entered into is entered into by him after attaining majority
and thus cannot avoid the liability arising out of it.
The agreement here made by the respondent is a fresh one and made by him after attaining majority and
thus the respondent here cannot claim to be incompetent to contract and has to bear the liability of non-
performance of the contract.
Position of parties: It is key to note here that the position of the parties have also been changed. In the
first agreement, when the responded misrepresented himself as major, the parties were acting as
promisor and promisee, but in the last agreement which was for paying the debt of ₹ 7,00,000 through
EMI of ₹ 20,000, the parties are acting as debtor and creditor. This means that the consideration has
changed and the position of parties have also been changed and therefore all these lead us to the
formation of a new agreement. This time an enforceable one.
In the case of Kundan Bibi v. Shree Narayan2; Shree Narayan, while he was a minor, received some
goods from Kundan Bibi in connection with his business and was indebted to her, when he attained
majority, he took some more money and executed a bond for paying the total amount to her. In an action
by Kundan Bibi to recover the said amount, it was contended by Shree Narayan that he was not liable to
pay as they purported to be in his minority. However, the Calcutta High Court held Shree Narayan to
be liable to pay the whole amount since there was a new consideration attached.
Since here as well, there is fresh contract with new consideration entered into by competent parties, the
respondent must be liable to pay what he agreed.
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Further, Section 73 of the Indian Contract Act, 1872 says; “When a contract has been broken, the
party who suffers by such a breach is entitled to receive, from the party who has broken the contract,
compensation for any loss or damage caused to him thereby, which naturally arose in the usual course
of things from such breach, or which the parties knew, when they made the contract, to be likely to result
from the breach of it”
This section makes it clear that the respondent by not paying the contracted EMI of ₹ 20,000 for the debt
of ₹ 7,00,000 has broken the contract and therefore is liable to pay damages to the appellant.
This is just to address the point alleged by the respondent that the appellant firm used substandard
material in constructing the Marvel contracted. These are mere words used by the respondent and no
proof he has presented in his averment.
It is key to note here that though the respondent is a well-versed singer but not an expert of construction
and materials used in it. Therefore, he cannot by mere words say that the material used was poor or
substandard
Furthermore, the building was constructed way before when the respondent was 16 years of age and
suddenly, after two years, he is saying that the material used is not up to the mark. If it was so, it took
him two years to figure it out? Why didn’t he, if that was the case, point out so at that time when he used
that marvel for his parties and building his career.
It is key to remember here that because of this multi-purpose, ultra-modern architectural marvel that he
was able to organize a grand pool party and received a huge contract for a fusion album as well.
It is key to note that the appellant firm is a leading firm in this field and is very reputed as well. It is
trusted by most and such trust cannot be brought, it is earned. And such would never have been earned if
the appellant firm had not performed their job up to the mark. Thus, putting such allegations without any
factual or scientific backing may invite some consequences for the respondent.
The respondent was very desperate to have this said building at the time of agreement. He wanted to use
this for developing his career in music by making connections and grabbing big contracts with top
people in the music industry through organizing parties. Suddenly, he wants to sell his dream
establishment. This reflects his desperation to get rid of the subject matter of the agreement so that he
can get free from the liability he carries with him. This also reflects why he is falsely pointing out the
material used by the appellant firm.
Therefore, it is quite clear that the respondent has failed to repay the debt he owes to the appellant firm
and thus using such baseless and bogus allegations to hide behind them in order to avoid his liability.
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Issue 2.
Whether the judgment passed in Mohori Bibee v. Dharmodas Ghose needs reconsideration?
2.1-Misuse of law
The law relating to the contracts of minors, meant for their protection, would, in numerous cases, have
exactly the opposite effect and result in manifest injustice. Even in the present case, the minor is trying to
foul play with the firm. Minors misrepresent themselves at several instances and then claim for the
protection. The maxim of equity which states that one “who comes into equity must come with clean hands.”
This doctrine requires the court to deny equitable relief to a party who has violated good faith with respect to
the subject of the claim. It provides an opportunity for minors to avoid unfavorable contracts.
2.4 Changing Economic Landscape Nowadays,minors engage in various economic activities, such as
entrepreneurship. investing, and online commerce. Revisiting the judgment could allow the courts to
adapt to these changing economic dynamics while still protecting minors from exploitation.Courts may
consider how the Judgment applies to the digital contracts and whether additional safeguards are needed
or not.
2.5 Social and Cultural Changes: Social and cultural norms have evolved, impacting how
individuals perceive and engage in contracts.Courts should re-evaluate whether the strict application of
the judgment aligns with these changing norms or not.
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Similarly, in the case of Phillips v. Thompson4, a minor, misrepresented his age and purchased a car. The
court ordered the minor to return the car to the seller and receive the purchase price back. This is an example
of restitution being granted in a contract involving a minor.Our courts should also look at how other courts
handle contracts with minors and consider whether there are lessons to be learned or best practices to be
adopted from international legal systems as well.
3
Hogan v. Midland Nat. Ins. Co., 3 Cal.3d 553
4
Phillips v. Thompson, 225 Mo. App. 859
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with minors are void ab initio, but it doesn't consider the circumstances under which such contracts may be
upheld in the interests of fairness and justice
5
Mathai v. Joseph Mary (2015) 5 SCC 622
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Issue 3
Whether the district court of Lucknow was correct in rejecting the plea of restitution?
The honourable court is requested to grant restitution as the contract done by the respondent is a valid
contract. The contract after attaining the age of eighteen is a valid contract as it fulfills the essentials
ofsection 10 of the Indian Contract Act 1872. It was a separate contract. Thus, the restitution of this
contract is valid.
The contract which the respondent did while being a minor (as per Indian Majority Act 1875),
though could not be a valid contract but the restitution should be provided from the property of the
minor.
Without doubt, this could be presumed that the appellant was trying to escape from hisliability
by selling of his property too.
Thus,one who comes into equity must come with clean hands.
In a nutshell, after considering the following reasons, the council humbly requests the High Court to
grant restitution and continue an injunction on the sale of the property of the appellant for the sake
ofequity and justice.
It is humbly submitted before the Hon’ble court that there are express provisions provided in the
Specific Relief Act,1963 which, under its Section 33(2)(b), clearly puts the defendant (here
respondent) under liability to restore all the benefits he received to the extent to which he or his estate
has benefited. It contemplates as; “Where a defendant successfully resists any suit on the ground—
• That the agreement sought to be enforced against him in the suit is void by reason of his not
havingbeen competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 1872), the
court may, if the defendant has received any benefit under the agreement from the other party, require
him torestore, so far as may be, such benefit to that party, to the extent to which he or his estate has
benefitedthereby."
There is no reason why the appellant ought not to be entitled to the restitution. The appellant was
deceived by the respondent regarding his age. The respondent willfully misrepresented himself to be a
major, which he wasn’t at that time. There was no way the appellant could’ve ascertained his minority.
The appellant, in the false pretext made to them by the respondent, used ₹ 7,00,000 from their own on
the assurance by the respondent of the repayment, which was later refused by him.
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Various landmark judgments also strands in the favour of the fact that if a minor has received any
benefit by misrepresenting his age, he must restore it. Like in the case of Khan Gul v. Lakha Singh8,
it was stated that, the doctrine of restitution rests upon the salutary principle that an infant cannot be
allowed by a court of equity to take advantage of his own fraud. It further observed that, “In order to
do complete justice repayment or restitution of benefit is not enforcement of void agreement but
reverting the parties to the condition in which they were, before the void agreement."6
Also in Jagar Nath Singh v. Lalta Prasad7, it was held that, where a person who are in fact underage
induces others to purchase property from them, they are liable in equity to make restitution to the
purchasers for the benefit they have obtained before they can recover possession of the property sold.
Therefore, it is humbly requested before the Hon’ble court to put the respondent under liability to
restore the amount he or his estate (here the multi-purpose ultra modern architectural marvel) benefited
from the amount used by the appellant.
7
Jagar Nath Singh v. Lalta Prasad, ILR (1908-10) 21 All 21
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PRAYER
WHEREFORE, in the light of the issues raised, arguments advanced and authorities cited, it is
most humbly prayed before this Hon'ble High court of Uttar Pradesh that it may be pleased to:
1. To hold the contract between Varun and firm as valid,which was done by Varun on his 18 th
birthday.
2. To revise the judgement passed in the Mohori Bibee and Dharmadas Ghose case.
And any other order which this hon'ble court may be pleased to grant in the interest of justice,
equity and good conscience.
Respectfully submitted
TC -07
22