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Cycle Parts Manufacturer V. Cycle Spare Parts Dealer

Date of Claim raised: 20/01/2023
Date of Conciliation: 02/02/2023
Date of Settlement: 08/02/2023
Digest: Mediation/Conciliation/Dispute/Claimant/Respondent/Invoice/Settlement
Case Summary

In the bustling city of Kolkata, West Bengal, a leading exporter, importer, and manufacturer of bicycles and tube valves found themselves embroiled in a dispute with a cycle spare parts store owner from Bankura. The dispute arose from the non-payment of a significant amount, specifically Rs. 99,277, owed by the Respondent to the Claimant. Despite numerous attempts by the Claimant to resolve the matter, the Respondent remained unyielding, prompting the case to be brought before the esteemed PrivateCourt for settlement.

The Issue:

The dispute between the Claimant and the Respondent originated from a business transaction involving the purchase of bicycles and tube valves. The Claimant, a reputable entity in the industry, provided the products to the Respondent, expecting to receive the agreed payment of Rs. 99,277. However, to the Claimant's dismay, the Respondent failed to fulfill their financial obligations, thereby breaching the terms of the agreement.

The Claimant contended that they had fulfilled their part of the contract by delivering the bicycles and tube valves in a timely manner and meeting all quality standards. They argued that the non-payment by the Respondent was not only a breach of contract but also resulted in severe financial losses and disruption to their business operations.

On the other hand, the Respondent disputed the Claimant's allegations, asserting that the delivered products were of subpar quality and did not meet the agreed specifications. They contended that they were within their rights to withhold payment until the Claimant rectified the defects and provided adequate compensation for the damages incurred.

With the dispute escalating and both parties unable to reach a mutually satisfactory resolution, the case was brought before the PrivateCourt for mediation and settlement.

The PrivateCourt Proceedings:

The PrivateCourt team promptly took charge, sending notices to both the Claimant and the Respondent, outlining the conciliation process and requesting necessary documents for vetting.

Following established protocols, the PrivateCourt team scheduled a conciliation session via Zoom and audio conference calls, ensuring convenience and accessibility for all parties involved. However, prior to the scheduled conciliation, the Respondent expressed willingness to engage in positive discussions with the Claimant, indicating their desire to settle the dispute amicably. The Respondent promptly communicated this to the PrivateCourt team.

The Settlement Agreement:

Given the Respondent's willingness to resolve the matter, a settlement agreement was drafted by PrivateCourt, providing a framework for the resolution. According to the agreement, the Respondent agreed to pay the disputed amount of Rs. 99,277 in ten equal instalments of Rs. 10,000 each, commencing from February 2023 and concluding in November 2023.

To ensure fairness and address any future disputes, the settlement agreement stipulated that any claims or conflicts arising from the agreement would be resolved through e-arbitration, following the rules of PrivateCourt. In such cases, a sole arbitrator appointed by PrivateCourt (PDR Organization Pvt Ltd.) would oversee the arbitration proceedings, with Mumbai serving as the designated place, seat, and venue for the arbitration.

The Inference:

This case serves as an example of the efficacy of alternative dispute resolution methods, particularly in commercial disputes. Through the intervention of PrivateCourt and the conciliation process, the parties were able to find common ground and reach a mutually agreeable settlement. The willingness of the Respondent to engage in positive discussions and the prompt actions taken by the PrivateCourt team facilitated a swift resolution, highlighting the importance of open communication and proactive mediation in resolving disputes.