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Interior Furnishing Company V. Handloom Manufacturer

Date of Claim raised: 29/07/2021
Date of Conciliation: 02/08/2021
Date of Settlement: 26/08/2021
Digest: Mediation/Conciliation/Dispute/Claimant/Respondent/Invoice/Settlement
Case Summary

This was a dispute that came up between an interior furnishing company and a handloom manufacturer and showroom owner. The Respondent, a handloom producer and showroom owner, contacted the furnishing company (the Claimant) for furnishing his new showroom. The parties, along with the design architect, agreed on the furniture and fixtures to be supplied, and a purchase order was released. The total value of products was agreed to at Rs. 12,85000/-, which involved display units, cashier's desks and other furniture and fixtures. The claimant was to only supply the materials, and the architect's team was entrusted with the installation of the same. The payment terms agreed upon were 50% advance and the rest on delivery. A time period of 45 days was allowed for the final delivery of goods.

The Issue

While the respondent had paid the advance and the products were delivered, there was a dispute in the sizes of some lamp shades supplied, and the payment for the same was held back. The complaint was based on the objection raised by the carpenters assigned to mount the shades as they felt that the design brief and the sizes mentioned were not adhered to. Despite efforts made by the claimant, an agreement could not be reached; hence, PrivateCourt was entrusted with the task of negotiating a consensus.

The Process

The negotiator, in this case, went through all the correspondence and the design briefs submitted. While all looked in order on paper, there seemed something amiss in the objections raised by the carpentry team. The negotiator now called in the carpenter for a discussion along with the architect’s representative to understand the concern. What became evident while discussing was that the carpentry team had, in fact, made a mistake in the frame sizes made to mount the shades as there was a gap in communication between them, and it was not really the folly of the claimant. The documented minutes of the discussion was sent to the respondent, and a settlement was arrived at.

The Terms

The outstanding amount of Rs. 25,273/- was to be paid in two instalments as follows:

The first instalment of Rs. 10,000/- on or before 20th September 2021

The second instalment of Rs. 15,273/- on or before 20th October 2021

The Inference

At times, bringing all parties to a dispute together achieves much more than just discussing with the contending sides.