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Background:

Company X was engaged by the Employer, Company H to construct a hotel building (Hotel) in
Mumbai, India. The Hotel was to be constructed by 28 February 2020. The total sum payable for
the construction of the Hotel was agreed to GBP 2,500,000/-.

Company X could not achieve the envisaged contractual completion date as the materials that were
to be used by Company X were not delivered on time. The materials were to be shipped
by Company W from Wuhan, China - the centre of the COVID -19 pandemic with whom
Company X had executed a supply contract. As per the contract, the materials were to be delivered
to Company X by 1 January 2020. The supply contract also contained a provision of liquidated
damages that stipulated damages to the tune of GBP 10,000 per week of delay, capped at a
maximum of GBP 50,000.

The Employer, Company H was keen to complete the project by 15 March 2020 given that a large
trade fair in a plot adjacent to the Hotel. The fair was to be held between 15 March 2020 - 15 April
2020 and Company H wanted to showcase the opening of the Hotel during the fair and capitalise
on the location of the Hotel. Company H had estimated a profit of GBP 25,000 in sales and room
reservations for the trade fair.

Since Company X was unable to complete construction of the Hotel by 28 February 2020,
Company H terminated its contract with Company X on 1 March 2020. Company H informed
Company X of its intention to seek all additional costs (and damages) in having another company
(Company R) to complete the remaining work.

You have recently been engaged by Company X as its counsel. Attempts to settle the dispute
amicably between Company X & Company H and Company X & Company W have failed.

Queries:

1. Please prepare a memo (maximum 2 pages) for Company X on its remedies against
Company W.

2. Please prepare a memo (maximum 2 pages) for Company X on its possible defences against
proceedings by Company H.

Please note that there is no force majeure provision in none of the Contract. Also, all the contracts
provide for a London seated ICC Arbitration governed by Indian law.

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