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Perfume Material Supplier V. Perfume Shop Owner

Date 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

The Claimant, a perfume material supplier, a well-known supplier of bamboo and agarbatti to various stores in the city. They had supplied goods worth Rs. 1,50,000 to a perfume shop owner, who failed to pay the due amount. Despite repeated requests for payment, the perfume shop owner continued to ignore the claimant's demands. The dispute was eventually brought to the attention of PrivateCourt, which acted as a neutral third party to settle the issue. With the help of PrivateCourt's team, the parties were able to resolve the issue through a mutually agreed settlement.

The Issue:

The dispute arose due to the non-payment of goods supplied by the Claimant to a perfume shop owner, the Respondent. According to the Claimant, they had supplied the goods as per the agreed terms and conditions, and the respondent was obligated to pay the amount due. However, the Respondent disputed the claim, stating that the goods supplied were of inferior quality and did not meet the specifications as promised. They argued that they were not liable to pay the full amount as they had only received partial goods as per their order.

The Claimant argued that they had fulfilled their part of the agreement and supplied the goods as per the respondent's order. They claimed that the respondent had not raised any complaints or disputes during the delivery process, and only raised the issue of inferior quality after the payment was due. They also argued that the respondent had not communicated any issues with the order during the delivery process.

On the other hand, the Respondent argued that the goods supplied were not up to the promised specifications, and hence they were not liable to pay the full amount. They claimed that they had only received partial goods as per their order, and hence they were only obligated to pay for those goods. They argued that they had raised concerns regarding the quality of goods during the delivery process, but the claimant had not taken any action to resolve the issue.

The PrivateCourt Proceedings:

The PrivateCourt team followed the standard protocol for handling disputes. They requested relevant documents from both parties, such as purchase orders, invoices, delivery receipts, and correspondence related to the dispute. The documents were vetted and assessed to evaluate the claims made by both parties. The Conciliator then scheduled a Conciliation via Zoom and audio calls Conference as per the Notice of Conciliation.

During the conciliation process, the respondent informed the PrivateCourt team that they wished to settle the issue by paying for the Bamboo material supplied. The Conciliator then suggested the most unbiased solution for the parties.

After several rounds of negotiation and discussion, the parties reached an agreement. The respondent agreed to refund Rs. 2,50,000 towards the supply of bamboo by the end of February 2023.

PrivateCourt's team ensured that both parties were satisfied with the settlement agreement and that it was legally binding. The dispute resolution process helped both parties avoid costly and time-consuming legal proceedings. It also provided a neutral platform for resolving disputes, ensuring fairness, and minimizing the potential for bias.

The Settlement Agreement:

Both parties agreed to settle the matter for Rs. 1,50,000 as a full and final payment. The Respondent paid Rs. 35,000 and agreed to pay the balance amount immediately on the signature of both parties, on or before 19/12/2022.

The Claimant would furnish a physical copy of the confirmation letter, stating that there were no pending dues after the payment of Rs. 1,50,000. They would also provide a physical copy of ledger accounts with the seal and signature of the authorised representative of the company, within fifteen (15) days of signing the agreement. Any further claim or dispute would be resolved through e-arbitration as per the rules of PrivateCourt.

The Inference:

The dispute between both parties was resolved amicably with the help of PrivateCourt's Conciliator. Both parties agreed to a settlement amount, and the Respondent agreed to pay the balance amount immediately. The use of PrivateCourt's dispute resolution process helped avoid lengthy and expensive legal proceedings.