Legal Question in Civil Rights Law in India

Anil entered into a contract with Mukesh (a contractor) on 1 January 2019 to build a house within a span of six months starting from the date of the contract. It was agreed that Mukesh will be paid Rs. 90 lakhs for his services. Anil, relying on the contract, executed another contract with a purchaser, Nita, regarding selling of the house. He promised Nita that he will transfer the house to her on 1 July 2019 for a sum of Rs. 1.4 crores. He then informed Mukesh about his contract with Nita and asked him to finish the construction on time.

On 1 April 2019, Mukesh approached Anil stating that he will be unable to complete the construction by 30 June unless Mukesh promises to pay him 20 lakhs above the agreed price. He cited various reasons such as strike by the labours to increase the salary, escalation in cost of construction material, fewer labours being available as many went back to their native place because of Holi etc.

Anil tries to find another contractor who could finish the job, but Mukesh being the leader of the labour union, ensures that no contractor was willing to take up the offer. Anil, having no choice, agreed to the additional payment of Rs. 20 lakhs.

Mukesh completed the construction of the house by 30 June 2019 and handed over the possession to Anil. Anil made a payment of Rs. 90 lakhs to Mukesh and refused to pay an additional 20 lakhs alleging that he had agreed to pay more under economic duress.

Advise Mukesh whether he should bring an action against Anil for the sum of Rs. 20 lakhs OR advise Anil whether he was justified in refusing payment of Rs. 20 lakhs. Ignore any issues on consideration.

Asked on 12/21/20, 8:10 am

1 Answer from Attorneys

Both parties have right to file cases against each other on different issues but whose right is true can be defined after search of documents made for the subject in issue.

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Answered on 12/21/20, 10:35 pm

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