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FINCAP V. Business Individual

Date of Claim raised: 10/04/2023
Date of Conciliation: 14/04/2023
Date of Settlement: 24/04/2023
Digest: Mediation/Conciliation/Dispute/Claimant/Respondent/Invoice/Settlement
Case Summary

In the bustling city of New Delhi, a medium-sized financial capital company, the Claimant, found itself embroiled in a dispute with an individual, the Respondent, residing in Shahadra. The conflict stemmed from the nonpayment of Rs. 1,46,232/-. Despite repeated reminders and attempts at communication, the Respondent failed to fulfill their financial obligations to the Claimant, leaving them with no choice but to seek a resolution through legal means.

Frustrated with the lack of progress, the Claimant decided to bring this case to PrivateCourt to mediate and settle the matter in a fair and unbiased manner.

The Issue:

The dispute between the Claimant and the Respondent stemmed from the Respondent's failure to pay the disputed amount of Rs. 1,46,232/-. The Claimant had provided comprehensive FINCAP services to the Respondent, including financial analysis, investment advice, and capital management. These services were crucial in assisting the Respondent with their financial decision-making and maximizing their capital growth.

The Claimant contended that they had fulfilled their contractual obligations by providing the agreed-upon services diligently and professionally. They had dedicated substantial time, effort, and expertise to ensure the Respondent received the necessary financial support and guidance.

However, despite the satisfactory delivery of services, the Respondent neglected to honor their financial obligations by not making the agreed-upon payment. This nonpayment created significant financial strain for the Claimant, impeding their ability to cover operational costs and impacting their reputation within the financial services industry.

The Claimant argued that the Respondent's failure to make the payment within the specified timeframe amounted to a breach of contract. They believed that the nonpayment had caused them significant financial loss, hampered their ability to provide quality services to other clients, and tarnished their professional image.

On the other hand, the Respondent claimed that they had faced unforeseen financial setbacks, which resulted in their inability to make the payment as agreed. They asserted that the delay was unintentional and expressed their willingness to settle the dispute amicably through negotiations.

Despite the initial disagreements and differing perspectives, both parties recognized the importance of finding a resolution to preserve their business relationship and reputation. Hence, they mutually agreed to seek the assistance of PrivateCourt, placing their trust in the institution's expertise in ADR to mediate and facilitate a fair settlement.

The PrivateCourt Proceedings:

PrivateCourt's team, equipped with extensive expertise in ADR, handled the case professionally and impartially. They initiated the proceedings by sending a notice to both parties, requesting relevant documents and evidence to support their claims. The team diligently vetted the submitted materials, ensuring a fair evaluation of the dispute.

Following the established protocol, the Lead Sole Conciliator from PrivateCourt scheduled a conciliation session via Zoom and audio conference calls, as specified in the Notice of Conciliation. However, prior to the scheduled session, the Respondent informed PrivateCourt that positive discussions had taken place between the parties regarding the amicable settlement of the dispute.

The Settlement Agreement

Considering the fruitful discussions between the parties, a settlement agreement was drafted and finalized. According to the agreement, the Respondent agreed to pay the settled amount of Rs. 1,46,232/- to the Claimant on or before 31st July 2023. The payment schedule was specified as follows:

  • 15th May 2023 48744/-
  • 15th June 2023 48744/-
  • 15th July 2023 48744/-

To ensure future resolution of any potential claims or disputes arising from the settlement agreement, the parties agreed to resolve such matters through e-arbitration in accordance with the rules of PrivateCourt.

The Inference

The timely intervention and expertise of PrivateCourt's team helped restore financial equilibrium and preserve the business relationships between the Claimant and the Respondent. The amicable resolution achieved through PrivateCourt's services demonstrates the value and advantages of alternative dispute resolution in promoting fairness, efficiency, and practical solutions.

PrivateCourt Journal Vol Q1 2022-23

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