Moot Proposition 1

MOOT PROPOSITION
ABC Private Limited (“ABC”), a company incorporated under the laws of the Republic of
Indica and engaged in the business of manufacturing medicinal drugs (including vaccines). It
has been in the business for more than two decades, supplying vendors across the globe. It
has received numerous awards including “The Best Practice Award” from a Global Best
Practice Association of Medicine manufacturers.
ABC entered into a contract of supply on 22 September 2020 for the first time with PQN,
another Private Limited (“PQN”) incorporated under the laws of the Republic of Indica, for
the supply of raw material required to manufacture a vaccine for Covid-19 (“Contract of
Supply”). Since the Republic of Indica had a dearth of resources to supply the EPI (Essential
Pharmaceutical Ingredient) so PQN used to source most of its supply from other countries
including the Republic of Serrana.
PQN was to supply the raw material within three months from the date of the parties entering
into the Contract of Supply i.e., 22 September 2020. The total contract value was Indica
Rupees 50 Crores out of which ABC was required to pay Indica Rupees 25 Crores before the
performance of the contract and the remaining Indica Rupees 25 Crores after the supply.
The global catastrophic incident of COVID-19 happened and the whole world went under
lockdown. There were strict regulations introduced like social distancing and even restricted
movement of people. Soon the situation exacerbated and there was a complete lockdown
everywhere. The Republic of Serrana went under complete lockdown, and the factories and
all other industries were shut down and became dysfunctional. Since the Republic of Serrana
is a mineral-rich country that supplied the world’s 80 percent of EPI, many countries started
seeing a shortage in medical supplies including lifesaving drugs.
Pertinently, PQN was one of very few suppliers of the raw material in the Republic of Indica
required to manufacture a vaccine for Covid-19. The parties specifically recorded in the
Contract of Supply that time would be the essence of the contract as per the representations
made by PQN as to its expertise in providing raw material for vaccines and the timelines
provided in the Contract of Supply, based on that ABC went ahead and made public
announcements that it would be one of the first few companies to roll out a Covid-19 vaccine.
However, PQN failed to supply any raw material as contractually stipulated and ABC was
not able to introduce the vaccine for Covid-19. In the meantime, other companies launched
Covid-19 vaccines by February 2021. This included FGN, a state-owned company of the
Republic of Indica which was one of the first to introduce a COVID-19 vaccine, however,
there was a backlash against the company saying that they had hurriedly introduced the
vaccine without any proper trial and that they were causing several side effects in patients.
When PQN was not able to supply the raw material to ABC in a timely manner, ABC wrote
emails to PQN demanding supply forthwith. In the meantime, seeing the public backlash
FGN was facing, ABC decided to get into contact with JNM, a company specializing in
plasma therapy for vaccine manufacture. This was touted as a more effective and safer
vaccine option for COVID-19. ABC, however, understood that since this therapy is in the
nascent stage it would require some time before it can materialize properly. ABC still wanted
to proceed with the traditional vaccine manufacturing method.
PQN expressed its inability to guarantee timely supply and stated that it had diverted huge
shipments of the raw material to another vaccine manufacturer. However, PQN was ready to
make the supply in parts as soon as possible however they could not guarantee the time given
the situation. ABC was worried that given the introduction of new vaccines in the market and
the delay caused by PQN, it would have to huge losses.
ABC filed a suit for specific performance and damages in the alternative against PQN before
the High Court of Bambino in the Republic of Indica (having original jurisdiction to entertain
suits over an amount of Indica Rupees 1 Crore). ABC sought damages in the sum of Indica
Rupees 100 crores; Indica Rupees 25 crores towards the monies already paid under the
Contract of Supply and Indica Rupees 75 crores towards the losses suffered by ABC on
account of the delay caused by PQN as also for the loss of reputation.
Both parties are before the High Court of Bambino and have to argue their respective case.
The pleadings are already complete. Prepare written memorials/arguments on behalf of both
parties. The laws of the Republic of Indica are similar to the laws of the Republic of India,
including the Indian Contract Act, 1872 and the Specific Relief Act, 1963.
The Following Issues were framed in the abovementioned case:
1. Whether the High Court of Bambino has Jurisdiction to entertain the case?
2. Whether PQN has defaulted in its performance of contract?
3. Whether ABC is entitled to receive any compensation for the same?

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MOOT PROPOSITION

The Following Issues were framed in the abovementioned case:

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