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Computer Peripherals Supplier V Importer of Computer Products

Date of Claim raised:25/08/2021
Date of Conciliation: 06/10/2021
Date of Settlement: 06/10/2021
Digest: Mediation/Conciliation/Dispute/Claimant/Respondent/Invoice/Settlement
Case Summary

This is a dispute between a computer peripherals supplier as the Claimant and an importer of computer products as the Respondent, both based in Maharashtra. The importer was given an order for some peripherals like printers and monitors by the claimant, and a delivery window of 15-days was accepted. While the total order value was Rs. 1,82,000/-, the same was demanded as advance, and the claimant complied with it. The dispute occurred when certain products ordered were not up to the specs, and the respondent denied replacing them. Leading to Rs. 20,000/- as an outstanding invoice amount.

The Issue

The order came with certain technical specifications and needed to be a certain particular size. While the delivery was made on time, on closer inspection of the products delivered, it was clear that the sizes of some of the monitors ordered were not up to the agreed specs. While the respondent was approached with this issue, he simply started ignoring the issue and stated a non-return policy. PrivateCourt was approached to settle this issue through Mediation.

The Resolution

While the mediator looked at the communication, it was clear that the purchase order had clear specifications on all products ordered. While the mediator discussed this issue with the respondent, it was clear that he was avoiding the return of the product as he did not have a buyer who could sell the product and would have cash flow issues. The claimant, however, being a larger company with a bigger customer base, would be able to sell off the products to his natural market. The mediator here suggested that instead of the products being returned, the respondent pays the difference in the product pricing and settles the issue. The same was gladly accepted by both sides.

The Settlement Agreement

The Respondent agreed to refund the entire amount of Rs. 20,000/- on or before the 10th of October 2021.

The Inference

At times, trying to understand what is at stake for both sides is key to a successful settlement.