NUJS-HSF Moot Court Competition, 2015: Finalists - Respondents

IN THE HIGH COURT OF CALCUTTA

AT CALCUTTA

Letters Patent Appeal No. ____/2013 (Under Clause 15 of Letters Patent for the H!h Court of Cal"utta# 1$%5& Celltone pl"'''''''''''''. '''''''''''''...Appellant . )nd*o+le Tele"o,s L,ted# 5- tar Netors L,ted'''''''''.....'''''''''....espondents

Clubbed with

Letters Patent Appeal No. ____/2013 (Under Clause 15 of Letters Patent for the H!h Court of Cal"utta# 1$%5& Celltone pl" '''''''''''''. ''''''''''''''...Appellant . and an'''''.'''''''''...''''''.''''...''espondent

Clubbed With

Letters Patent Appeal No. ____/2013 (Under Clause 15 of Letters Patent for the H!h Court of Cal"utta# 1$%5&

Celltone pl" '...'''''''''''''. ''''''''''''.Appellant . */s arsh Le!al Asso"ates''''''''...''''''''''''.espondent

4rtten su+,ssons on +ehalf of# Tea, Tea, Code H156 Counsel for the espondents.

TABLE OF CONTENTS

7TH NUJS-HSF NATIONAL CORPORATE MOOT COURT COMPETITION , 2014-2015

Lst of A++reatons....................... A++reatons.............................................. .............................................. .............................................. .............................................7 ......................7 )nde8 of Authortes...................... Authortes............................................. ............................................... ............................................... ...............................................% ........................% tate,ent of 9ursd"ton.................................... 9ursd"ton........................................................... .............................................. .................................................: ..........................: ;uestons Presented................................ Presented....................................................... .............................................. ......................................................... ...................................10 .10 tate,ent of 6a"ts............................................. 6a"ts.................................................................... .............................................. ............................................ .........................11 ....11 u,,ar< of Pleadn!s............................... Pleadn!s...................................................... .............................................. ............................................... ................................1 ........15 5 Pleadn!s..................................................................................................................................1$ ). The )n"dents urroundn! the Lo) do not Consttute a 6raudulent rea"h of the AA..1$ =A>. The Lo) does not )nterfere th the ?8e"uton of the AA......................................1$ =>. The Clause estr"tn! the Transfera+lt< of the hares s Unenfor"ea+le A!anst 5- tar........................................... tar.................................................................. .............................................. ................................................. .................................... ..........1$ 1$ =C> =C> Th Thee Lo Lo)) s not Le!al Le!all< l< nd ndn! n! on the Part Parte ess and s Unenf Unenfor" or"ea ea+le +le A!ans A!anstt )nd*o+le...................................................... )nd*o+le............................... .............................................. .............................................. ............................................20 .....................20 =>. No 6raudulent *srepresentaton has +een *ade....................................................23 )). The )n"dents urroundn! the Cal"utta L"ense do not Consttute a.............................25 rea"h of o f the AA...................................... AA............................................................. .............................................. ............................................ ...........................25 ......25 =A>. L"ense et Apart on a Loer tandard...................................................................25 =>. The Pa. The L"ense as not ;uashed untl after Co,pleton of the eal...........................2$ ))). The )n"dents urroundn! the APU do not Consttute a rea"h f epresentaton..2$ =A>. The Corre"t 6!ures ere uppled..........................................................................2$ =>. Celltone had The A+lt< to Condu"t ue l!en"e................................................2: =C>. )n an< eent# There as No 6raudulent *srepresentaton......................................30 )B. )B. The The a,a!es Cla,ed are )n"orre"t and should not +e Aarded.......... Aarded..................................31 ........................31 B.

and and an an s not not +l!at +l!ated ed to ele elease ase the the ?s"ro ?s"ro A, A,ount. ount.... ...... ...... ....... ........ ........ ........ ........ ........ ......32 ..32 =A>. The )nde,nf"aton +l!atons hae Not +een Tr!!ered.....................................32 =>. The ut fled +< Celltone s Pre,ature....................................................................32

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7TH NUJS-HSF NATIONAL CORPORATE MOOT COURT COMPETITION , 2014-2015 =C>. Celltone Cannot ee )nde,nt< for a,a!e Caused +< ts n Ne!l!en"e........33 B). LA s not La+le to Pa< a,a!es to Celltone.............................................................37 =A>. An )n"orre"t pnon s not A"tona+le....................................................................37 A"tona+le....................................................................37 =>. LA oed No ut< f Care toards Celltone........................................................35 =C>. )n an< "ase# the pnon "annot +e Consdered )n"orre"t n l!ht of ts Assu,ptons ............................................. .................................................................... .............................................. .............................................. ...............................................35 ........................35 =>. Celltones n Ne!l!en"e ?8"eeds that of LA...................................................3@ Pra AL9 5@'''''''''''''''''''...2@ 2. ell . . Leer ros ros Ltd# Ltd# =1:32> AC 1%1'''''''''' 1%1'''''''''''''''' ''''''''23 ''23 3. ottn )nternatona )nternatonall )nest,ents )nest,ents Ltd . . Be Benson -roup pl"# pl"# =2007> ?4CA ?4CA C 13%$'''''''''''''''''''''''''''''''...2: 7. Courtne< and and 6ar+arn 6ar+arn Ltd . Tolan olan ros (Hotels& (Hotels& Ltd.# Ltd.# =1:@5> 1 All All ? @1%''.23 @1%''.23 5. ?uro"op<  Tees Teesdale# dale# =1::2> .C.L.C. .C.L.C. 10%@'''''''''' 10%@'''''''''''''''' ''''''27 27 %. 6ole< . . Cassue Cassue Coa"hes Coa"hes Ltd.# Ltd.# =1:37> 2 E 1'''''' 1'''''''''''' ''''''''... ''...21 21 @. *al . . an an of Credt# =1::@> UEHL UEHL 23'''''''''' 23'''''''''''''''' ''''''...32 ...32 $. Pa!nan pA pA . 6eed produ"ts# produ"ts# =1:$@> =1:$@> Llo 1 4L 1%5''''''''''''33 17. troer . Harrn!ton# =1:$$> Ch 3:0''''''''''''''''''...27 15. ud+roo Tradn! ?states Ltd. . . ?!!leton# ?!!leton# =1:$3> 1 AC 777''''''''....21 1%. Tes"o Tes"o uper,arets Ltd . Nattrass# =1:@1> 2 4L 11%%'''''''''.2%#2@ 11%%'''''''''.2%#2@

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7TH NUJS-HSF NATIONAL CORPORATE MOOT COURT COMPETITION , 2014-2015 US Ca!

1. AG AG Partners Partners . 6I4 6I4 A"usto A"uston# n# $:1 A.2d 1032 (el. Ch. 200%&......... 200%&.............. .......... .....27#30 27#30 2. rone . o++# 5$3 5$3 A.2d A.2d :7:# :55 (el. (el. 1::0&''''''' 1::0&''''''''''''' '''''''.27 '.27 3. Carlsen . . e"urt< e"urt< Trust Trust I a. a. an# 205 Cal. Cal. 302 (Cal. (Cal. 1:2$&''''''''3 1:2$&''''''''32 2 7. Coastal rtheopad" rtheopad" )nsttute )nsttute PC . on!orno# on!orno# $0@ N e 2d (2007&'''' (2007&''''''... ''...37 37 5. 6ortress 6ortress Credt Corp . . e"hert# e"hert# LLP :37 N.G N.G..2d 11: 11: (App. . . 2011&''' 2011&''''3% '3% th %. -re 2 4L 11%%. 52 ;.@# Clarf"atons. *?*)AL 6 TH? 6  TH?  ?PN?NT ?PN?NTPA-? 26

7TH NUJS-HSF NATIONAL CORPORATE MOOT COURT COMPETITION , 2014-2015 as not the Oalter e#o of the Co,pan ?4CA C 13%$. %7 e". 12(+&# )nfor,aton Te"hnolo!< A"t# 2000. %5 e". 2(t&# )nfor,aton Te"hnolo!< A"t# 2000. %% D12# 6a"tsheet. *?*)AL 6 TH? 6  TH?  ?PN?NT ?PN?NTPA-? 29

7TH NUJS-HSF NATIONAL CORPORATE MOOT COURT COMPETITION , 2014-2015 e"ton 1: of the )ndan Contra"t A"t apples and the respondents "annot +e held la+le for ,srepresentaton or fraud.%$ 3%. Addto Addtonall< nall. ) N ANG ?B?NT# TH?? 4A 4A N 6AUUL?NT *)?P??NTAT)N

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7TH NUJS-HSF NATIONAL CORPORATE MOOT COURT COMPETITION , 2014-2015 so,ethn! not reured +< the ter,s of the es"ro or for a loss n"urred hle o+edentl< follon! hs es"ro nstru"tons.$2 Hen"e# t s su+,tted that and an  "annot +e ordered to release the es"ro a,ount. =>. TH? U)T 6)L? G C?LLTN? ) P?*ATU?

7@. )t has +een held +< the Courts that a "ause of a"ton for seen! nde,nt< ould ould arse onl< hen the da,a!e s suffered +< the nde,nt< holder and f a sut s +rou!ht  +efore a"tual loss t ll +e a pre,ature sut.$3 )t s su+,tt su+,tted ed that the sut fled s  pre,ature sn"e sn "e no da,a!e da ,a!e has +een + een "aused or no a"tual a "tual loss has +een n"urred +< + < the  partes. )n "ases of nde,ntes nde ,ntes a proof that loss los s s suffered s reured.$7 )n the nstant "ase# the loss ould o""ur onl< n the eent of ts alle!atons of +rea"h of arrant+2, 5>+2, C&9ani C&9ani! ! A.$, A.$, 201