CaseStudy

Case Summary

This case is between a Chemical Products supplier and a Wholesaler of Food Products. In this case, the chemical products supplier, the claimant, supplied food colours to the Respondent, the food products wholesaler. The dispute came about when the respondent stopped paying the claimant for the product delivered, citing poor quality and customer complaints as a reason. The move took the claimant by surprise as the products supplied were of standard, and there was no complaint received from any other party.

The Issue

While the respondent stopped payments citing this reason, there was a quality audit conducted on products manufactured in the same batch, and no degradation of quality was found. The aggressive nature of the respondent and his complete unhappiness with the product also perplexed the claimant, who was unsure of his response. The case was handed over to PrivateCourt for mediation.

The Process

The Mediator, in this case, employed the services of a chemical expert who reverified the test results of the claimant, then Mediator invited the respondent for a discussion in the presence of the expert. Through the discussion, a physical visit to the respondent's premises and a quality audit were agreed upon. On this visit and the subsequent sample testing, what came forth was there there was a mold infestation in the warehouse where the products were stored, and this affected the quality of the produce. The results of the test were made available to the respondent, who had no option but to agree to his mistake. Since there was a loss that he had borne in the whole ordeal, a deferred payment option was extended, and the case was settled.

The Settlement Agreement

The Respondent agreed to pay the total amount of Rs. 4,82,028/- within 3 months from the date of agreement i.e. on or before 20th July 2022.

The Inference

Getting to the root cause of any issue is vital to dissolve a dispute.