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Manufacturer of packaging machinery Vs Supplier of Capacitors

CDate of Claim raised: 20/12/2022
Date of Conciliation: 22/12/2022
Date of Settlement: 22/12/2022
Digest: Mediation/Conciliation/Dispute/Claimant/Respondent/Invoice/Settlement
Case Summary

This dispute is between a Manufacturer of packaging machinery (the Claimant) based in Pune and a Supplier of Capacitors (the Respondent ) based out of Pune again. The Claimant entered into a contract with the Respondent for the supply of capacitors worth Rs. 1 lakh. The delivery was to be made within 30 days of the placement of the order.

However, after the expiry of the stipulated delivery period, the Respondent failed to deliver the goods, despite repeated requests from the Claimant. The non-delivery of the goods led to significant losses for the Claimant, as they were unable to fulfill their customer orders due to the lack of necessary machinery.

Aggrieved by the non-delivery, the Claimant initiated legal proceedings against the Respondent. After considering the facts and arguments of both parties, the court referred the case for Arbitration. The case came to PrivateCourt, an alternate dispute resolution organisation for settlement.

The Issue

The Claimant and the Respondent entered into a contract for the supply of capacitors worth Rs. 1 lakh. However, the Respondent failed to deliver the goods within the stipulated period of 30 days. This led to a loss of business for the Claimant as they were unable to fulfill their customer orders due to the non-availability of necessary machinery.

The Respondent argued that the delay in delivery was due to unforeseen circumstances, and they were not liable for any losses incurred by the Claimant. The Respondent further stated that they had initiated the process of delivering the goods and requested the Claimant to extend the delivery period. However, the Claimant rejected the request.

The Respondent further stated that they had initiated the process of delivering the goods and requested the Claimant to extend the delivery period. The Respondent also denied any liability and refused to provide any compensation for the loss in business the Claimant was stating.

The Claimant, feeling wronged, decided to initiate legal proceedings against the Respondent and filed a complaint with the local court.

However, the legal process proved to be long and cumbersome, with no clear resolution in sight. The parties were stuck in a stalemate, with each side unwilling to compromise on their demands. It was at this point that they turned to PrivateCourt, a specialized dispute resolution platform, to seek an amicable and expedited settlement.

The Process

The PrivateCourt team followed strict procedures and protocols while handling the case. The dispute centered around the delayed delivery of a packaging machine that the Claimant had ordered from the Respondent.

The PrivateCourt team requested the necessary documents from both parties to verify the claims made by each. These documents included the purchase order, payment receipts, and the delivery schedule. The team vetted these documents thoroughly to ensure that there were no discrepancies or fraudulent claims made by either party.

After reviewing the documents, the PrivateCourt team suggested several unbiased solutions that could help resolve the dispute. The team proposed that the Respondent could either deliver the machine within a specific timeframe or pay compensation to the Claimant for the delay in delivery. The team also suggested that the parties could opt for conciliation, arbitration or mediation, as per their convenience, to resolve the dispute amicably.

Furthermore, the PrivateCourt team took an impartial approach while handling the case, ensuring that all parties were given an equal opportunity to present their side of the story. They followed the stringent protocols set by the organisation, which includes the selection of a sole conciliator to facilitate the proceedings, adherence to timelines, and maintaining the confidentiality of all information shared during the proceedings.

The team scheduled a conciliation via Zoom and audio call conference as per the Notice of Conciliation. However, during a discussion with the PrivateCourt team, the Respondent, informed that they wished to settle the issue by paying the entire claim amount.

The PrivateCourt team was able to successfully facilitate the resolution of the dispute between Ascent Packaging System and Standard Capacitors Pvt Ltd. Their strict adherence to protocols, impartiality, and expertise in dispute resolution helped to bring the matter to a close in a timely and efficient manner.

The Settlement Agreement

Following the conciliation proceedings, the Respondent agreed to pay the entire claim amount of Rs. 1 lakh to the Claimant in two instalments: Rs. 50,000 on or before January 12, 2023, with the balance amount of Rs. 50,000 to be paid after the delivery of the components and verification by the Claimant.

The settlement agreement was signed by both parties, and the matter was considered resolved.

The Inference

This case is an excellent example of the effectiveness of Alternative Dispute Resolution methods, and how PrivateCourt's approach can help parties to resolve disputes in a peaceful and mutually beneficial manner.