Question
Ambewalle, a cottage industry mango pulp maker contracts with Pitale Bandhu, a medium scale Sweetmeats business to supply them with 10,000 cans of Alphonso mango
Ambewalle, a cottage industry mango pulp maker contracts with Pitale Bandhu, a medium
scale Sweetmeats business to supply them with 10,000 cans of Alphonso mango pulp for the
Diwali Season of 2019 for a sum of Rs 25,00,000. Pitale Bandhu gave the entire amount in
advance to Ambewalle in May 2019. The Alphonso pulp is a vital ingredient in a number of
signature sweets manufactured by Pitale Bandhu such as the Aamrakhand. In the run up to
the festive season around September 2019, Ambewalle informs Pitale Bandhu that due to a
combination of labour unrest and unseasonal rains, the cost of producing the pulp has shot
up by 25% and that even if Pitale Bandhu were to be happy to cover for this inflation in the
price, it would not be possible to meet the order for 10,000 cans. Accordingly, Ambewalle
suggests that Pitale Bandhu either take delivery of 7,500 cans for the same consideration
amount of Rs. 25,00,000, or look for an alternative supplier, which would have been difficult
at this late stage before the festive season. Sensing that they have no other real choice and
given their budgeting constraints, they agree to take 7,500 cans and nothing more for
Rs.25,00,000. Ambewalle delivers accordingly, and Pitale Bandhu is unable to cater
adequately to the festive demand.
After all is done, in January 2020, Pitale Bandhu sues Ambewalle for Rs. 6,25,000 (which is
equivalent to the originally agreed amount for the shortfall i.e. 2500 cans).
If in January 2020 Ambewalle makes Pitale Bandhu a promise to pay Rs. 3,00,000/- 'as
a gesture in light of Pitale Bandhu's action accommodating them [Ambewalla] in their
hour of need', would Pitale Bandhu be able to enforce this promise in a court of law,
in case Ambewalle backed out from it?
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