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Chemical Manufacturer V Distributor

Date of Claim raised: 02/12/2021
Date of Conciliation: 03/12/2021
Date of Settlement: 03/12/2021
Digest: Mediation/Conciliation/Dispute/Claimant/Respondent/Invoice/Settlement
Case Summary

This dispute is between a super stockist of engine oils and a distributor, both based out of Maharashtra. While the claimant, in this case, the super stockist, had been supplying engine oil and such products to the distributor over the past few years, and payments had been made against goods given on credit fairly regularly, there was an issue with payments made at the end of Calander year of 2021. This was a sudden turn of events, and the supplied stockpile was worth Rs. 18,37,381/-, this amount being stuck created a huge cash flow for the claimant, and a dispute ensued.

The Issue

There was a major fire in the godown where the distributor had stored its materials. Though the place was insured, the respondent had failed to comply with a few fire safety norms; hence, his claim was put under review. Since the investigation was a time-consuming process, the respondent was now unable to pay his dues. The dispute was handed over to PrivateCourt court for settlement.

The Process

After establishing the accuracy of the claims, the mediator now proceeded to discuss the issue with the respondent. During the discussion, the intent to pay was clear, and the mediator, after checking the facts with the insurance company, established the truth in the matter. Post discussion with the claimant, a deferred payment term was agreed upon to ensure that the respondent also got a chance to come back to business and make a fresh start.

The Settlement Agreement

The Respondent agreed to settle the entire dues amounting to Rs. 18, 37,381/-, within eleven instalments of Rs. 1,67,035/- beginning February 2022 to December 2022.

The Inference

At times, ensuring that a good client is treated with a bit of leniency goes a long way in improving business relations.