Académique Documents
Professionnel Documents
Culture Documents
Mr. X v. State of Sikkim.
Facts of the Case.
Mr. X, the appellant had applied for Overseas Scholarship and executed a bond with the
Government of Sikkim on 2nd July 2010, validating under his hand and sign, clauses 1 and 2
contained therein, which stipulated that on completion of his studies abroad, Mr. X would
return back to India and serve the State Government of Sikkim on terms determined by them
for a minimum period of 5 years. If the State Government does not provide him gainful
employment / job for him within six months after his return, then they, i.e., the State
Government of Sikkim would be deemed to have waived their right to claim his services and
he was at liberty to work elsewhere.
The clause 2, to which Mr. X had agreed and signed, further stipulated that in case the
candidate availing scholarship fails to honour his commitments under the contract, he shall
be liable to return all the monies received as scholarship, passage money as well as other
incidentals incurred with 5% annual interest. In case of failure to join work, he shall remit back
the above mentioned scholarship amount with 10% annual interest and additional penalty of
not less than one year salary for each period of deputation.
On completion of his academic course, Mr X, requested through a letter to the State
Government of Sikkim to extend his foreign visit for training at Ding Dong Bell Company for
a period of one year at his own cost. The concerned authority of the State Government,
appreciating the added utility of the training at no extra cost to the State Government of
Sikkim allowed his request.
Thereupon Mr. X completed his studies and obtained a Diploma on 14th June 2012. He
returned to Gangtok on 6th July, 2012 and wrote a letter dated 18th July 2012 to the
Government of Sikkim saying that he had returned from USA after the completion of his
studies there. Subsequently on 29th November, 2012, Mr. X , the appellant addressed a letter
to Sikkim Government saying that he be permitted to return to USA to complete his training
which was interrupted on account of the ill health of his mother to see whom he had to return
back to India. Mr. X also assured the State Government of Sikkim of pledging his services
after his return to India. The State Government by its order dated 28th February, 2013
acceded to the request of the appellant. Mr. X left India on 27th February 2013 and did not
return back. Mr. X took over as Director of the Harper Casino at Las Vegas, USA.
Cause of Action.
The State of Sikkim filed a suit of recovery of Rs.4000000 (Forty lakhs) before the District
Trial Court for breach of conditions of bond. In addition the State government also prayed
for interest accruals on principal amount. The total amount worked to Rs.6200000 (Sixty
two lakhs). The actual claim for breach was Rs.4000000 (Forty Lakhs).
Mr.X, the appellant pleaded that the order of the Sikkim Government dated 28th February,
2013, permitting him to return to USA caused the previous contract to stand discharged and
therefore unenforceable. The appellant also contested the breach of contract amount as
claimed by the State Government.
Trial Court Judgement.
A number of issues were framed on the pleadings of the parties. The Trial Court dismissed the
suit on the ground, interalia that the Government had failed to provide a job to the appellant
within six months of his sending intimation of his arrival in India. It was held that there had
been variance of the terms of the contract by the Government by permitting the appellant to
continue studies in the United States and there had been no breach of the terms of the bond
by the appellant. It was also held that the contract dated July 2, 2010 came to be discharged
on the expiry of six months from July 2012 i.e. in January 2013. The Government order dated
February 28, 2013 if taken as a fresh contract was without consideration and not enforceable.
High Court Judgement.
The High Court, on appeal, by the State of Sikkim reversed the decision and decree of the
District Judge (Trial Court) and decreed the suit against the appellant. The High Court
maintained that the appellant Mr.X had not abandoned the idea of return to the USA during
his visit to Gangtok. This visit was caused due the illness of his mother, who died a little
before his arrival. Though Mr.X did write on 18th July 2012 to the State Government
informing them of his return to Gangtok, his subsequent letter dated 29th November, 2012
was consistent with the original agreement between the parties and therefore validated its
continuance. Having incurred a sum of Rs.4000000 on Mr.X, the State Government of Sikkim
had legitimate expectation of compliance of bond requirements. On the other hand, Mr. X
showed an attitude of utter disregard of his legal and moral obligations under the
scholarship bond.
Answer these Questions in your Project Report.
[4X25=100 Marks]
1. Build a legal defense for Mr. X citing relevant sections of the Indian Contract Act, which will
enable Mr. X to argue his case before the Trial Court in your own words. (200 words)
2. Did Mr.X, the Appellant cause breach of contract. If yes, what elements of breach are
present in his case? Giving instances from his conduct make out a charge for breach of bond
conditions and therefore his liability for damages. Cite relevant sections of the Indian
Contract Act, 1872 under which such breach is dealt with and the remedies therefrom to
substantiate your answer (200 words maximum)
3. Despite the contents of clause 1 and 2 which provided some scope for Mr.X, the appellant
invariably led himself into liabilities. From the contents of the matter before you, make a
strategy using which, Mr.X, the appellant, could have saved himself the damages arising out
of this suit. (200 words maximum)
4. While the Trial Court was convinced of the argument presented by Mr. X the High Court
reversed the judgement of the District Trial Court. Mr. X would like to go in appeal to the
highest judicial forum under SLP or Special Leave Petition. Which Forum should he approach
against the impugned order of the High Court and under what provision? What do you think
would be the judgement of the Highest Forum? Give legal reasoning to substantiate your
answer with the help of relevant sections of the Indian Contract Act, 1872.(300 words
maximum )
N.B : Submit the Report on 25/04/2019 (in MS word file) , not later than 4:30
PM in AIS ( https://vil.xlri.ac.in/sat_ais/index.php )