VIDHITWA’ 19

MOOT PROPOSITION

India is a developing country with 29 states and 7 union territories. Its food industry is poised
for huge growth and is known all over the world for the different cuisines it offers. Food
Industry remains one of the most profitable businesses in the country. The advancement in
technology has not stayed aloof to this sector. Restaurants have started utilising technology to
come in par with the demands of the market and public. The recent use of E-Contracts by the
restaurants for availing various services has proved to be a boon to their business.

Central Perk is one of biggest restaurant chains in India. It had its first outlet in Ranchi and
since then there are close to 20 restaurants across India. The highlight of this place apart from
its excellent service and fusion food is the live performances by various artists from across
India. Live performances ranges from solo singing, band performance, Group Dance etc.
Artists for these performances were usually hired through interview method but with the
growth of the restaurant, this method became obsolete and burdensome. On 22.06.19 the
restaurant decided to undergo major policy and procedural change and starting recruiting
artists via online platform.

The new procedure was that those interested in the job would have to fill the agreement
present under the Contract Tab of the restaurant’s website available online. Several other
Tabs such as Business, Legal etc were present at the top right corner of the website. The
contents of the agreement included Personal details, Prior experience and Salary of the
interested artist. Personal Details column asked for the Name, Sex, Age, Address, Email ID
and Registered Paytm Number of the artist. The experience column had a drop down menu
stating few particular conditions, which if fulfilled would allow the candidate to go further.
For receiving salary, artists were required to link their Paytm with the website server of the
restaurant.

The agreement ended with the artist clicking on I agree button with a Clause 32 stating that:

Kindly click on I Agree button to enter into a contract with us. This would imply that you
have given consent to each and every term of this Contract.

Lastly, there was a small asterisk mark beside the Registered Paytm Number Clause which
was mentioned in the end of the agreement in fine print below the I Agree Button which read
as follows:
 VIDHITWA’ 19

Notwithstanding anything an employee absent for performing without a minimum two days
notice intimidating the relevant authority about the reasons for the same would become liable
to pay reasonable compensation to the employer. The amount would be deducted from the
Paytm wallet of the employer.

The Legal Tab had exhaustive information regarding the agreement and its nuances. Ms.
Leela Sheth was an aspiring singer and wanted to work for the Ranchi Branch of Central Perk
owing to its reputation and fame. She had been a life performer previously for two other
restaurants who also used E-Contract for employment agreement. On 22.07.19 she went on to
the website of the restaurant and entered into an agreement with them by clicking on I Agree.
Her performances were scheduled on 28.07.19 and 01.08.19. While returning home on the
night of 28.07.19 after giving her first performance at the restaurant, she met with an accident
fracturing her Right Leg along with few other bruises. She returned home from hospital on
30.07.19. Due to her broken leg she was not able perform at the restaurant and when on
01.08.19 she called to notify the manager about the same, the call was unanswered.

On the same night, she received a message from her Paytm that a sum of INR 6000 had been
deducted from her wallet and paid to Central Perk. Astonished with this she called the
restaurant manager and questioned about the same. After being told about the requirement of
two days notice before taking a leave, she stated that she had no knowledge about this or the
compensation related to it. She stated that she had only linked her Paytm Wallet with the
Restaurant for receiving her Monthly Salary. After no remedy or help form the restaurant,
Ms. Leela filed a suit against them demanding refund of the sum deducted from her account
without her consent under an invalid contract. The matter is posted for hearing on 03.10.19

There is no dispute as to the facts. The participants are free to frame issues and
arguments so as to secure the reliefs sought by their clients.

All laws are in pari materia with the laws of the Republic of India.