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Digital Marketing Solution Providers V Infotech Company

Date of Claim raised: 05/11/2021
Date of Conciliation: 18/11/2021
Date of Settlement: 18/11/2021
Digest: Mediation/Conciliation/Dispute/Claimant/Respondent/Invoice/Settlement
Case Summary

The case is about a disagreement between a company in the business of Digital Marketing Solutions based in Bangalore and an Infotech company based in Delhi. The claimant, in this case, the Digital Marketing solution provider, was approached by the IT company to create a 3D model walk through of an upcoming apartment complex for one of its clients. The project was to be delivered for a Virtual Reality platform, which would enable prospective buyers to have a feel of the final property once constructed. The delivery time for this project was 120 days. While there was an advance demanded, the claimant agreed to being paid on the completion of the project at the request of the respondent. The project was delivered within the stipulated time period, but the respondent did not honour his payment promises.

The Issue

While the project was delivered and the clients had signed off on the acceptance letter, they did not honour the pay on delivery commitment. The issue occurred as their client in turn had got a quote from one of their competitors and had purchased the said walk through from them without informing or cancelling the order placed with the respondent. Now that the product had been delivered, the respondent was in a fix as its clients denied payment, leading to an outstanding amount of Rs. 7,88,279/-. After much debate between the two parties, PrivateCourt was asked to take up the matter for settlement.

The Process

While the Mediator went through all the documents, the legitimacy of the claim was established and a discussion was initiated. While the mediator heard and understood the predicament, the suggestion that he made was that the respondent’s team use the project as a marketing tool for future clients as virtual reality walk-throughs have now become an integral part of the real estate business. The same, as a suggestion, was accepted. Considering the loss that the respondent's company had incurred a deferred payment term was agreed upon.

The Settlement Agreement

The Respondent agreed to pay the outstanding amount i.e. Rs. 7,88,279/- within five months, beginning December 21, 2021 till April 22, 2022, in five instalments with not a single instalment amounting to less than Rs. 1,50,000/-.

The Inference

Human consideration and creative solution providing can help resolve issues quicker.