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Ajay is a flourishing businessman who is in a business of finding run down properties

and selling them at profit after developing them. In early October 2019 he comes
across a property suitable to his interest and purchases the same. He immediately
employs Bipin, a builder to help him with the restoration of the property. Bipin
provides an estimate of Rs. 15 lakh for the restoration including labor and materials.
Ajay accepted the quote but on a condition that the work should be completed by the
end of December 2019. He further emphasizes on the timeline as he had a plan to
lease the said property from January 2020 onwards which would have fetched him a
monthly rent of approx. Rs. 25,000/-.
The work commenced on the property by Bipin in the middle of October, but due to
certain conflicts with the labour, his labour left him midway. He soon realizes that
these hindrances will not make it possible for him to complete the work within the
stipulated timeline, unless he employs new labour and that too with overtime work.
He hires new labour but the new labour was far more costly than the earlier one, and
added with over time costs, the overall cost increased substantially by 2.5 lakh. Hence
now the project was to cost Rs. 17.5 lakh. Sensing the situation and believing that
there was no way out for Ajay, he lets Bipin proceed with his work.
Bipin claims the work completed by the 30th December, but Ajay finds few snags to
his dissatisfaction. The treatment of the snags takes another week meanwhile the
pandemic is declared and the country is under a health emergency situation. Having
suffered loss of his prospective tenant due to the delay and the pandemic, Ajay is not
in a position to bear the new cost entirely. He extends 16 lakh to Bipin explaining him
his financial loss due to the delay and the pandemic. Bipin unwillingly takes the said
amount on that day, but on getting to know about Ajay finding a tenant in Feb 2020,
asks him for the balance amount. Ajay refuses to pay the balance stating that the deal
is closed.
Bipin sues Ajay for the balance in the district court where the order is granted in his
favour i.e. the balance amount and interest to be paid by Ajay to Bipin.
Against this order Ajay appeals to the Hon’ble High court stating equitable
promissory estoppel and force majeure as his grounds.
Hence the present appeal lies before the Hon’ble High court of judicature at X with
following issues –
1. Whether pandemic can be a ground for absolving the appellant of his
liabilities in the instant case?
2. Whether the doctrine of promissory estoppel should operate to prevent the
respondent from his claim?
3. Whether payment of a lesser sum can be a sufficient consideration in the
instant case?

The laws to be followed and applicable in this case shall be pari materia with that of
India.

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