CONCILIATION
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INDEX
Sl. No. Particulars Pg. No.
01. Cause Title 3
02. Facts of the Case 4
03. Invitation for Conciliation 5-6
04. Reply to the Invitation 7-8
05. Conciliation Agreement 9-10
06. Opening Statement of Conciliators 11-12
07. Statement of Claim 13-15
08. Statement of Defence 16-18
09. Observation of Conciliators 19
10. Settlement Agreement 20-21
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BEFORE THE CONCILIATORS
AT BENGALURU
JRS Infra Pvt. Ltd..,
#78, Outer Ring Road,
Hebbal Industrial Area, Mysuru ………………………Claimant
v/s
SLV Pvt. Ltd..,
#212, 4th Cross,
Kuvempunagar, Mysuru, ……………………… Respondent
Reference of the Dispute for Arbitration under Section 61 of the Arbitration and
Conciliation Act, 1996.
Shiva
Counsel for Claimant
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FACTS OF THE DISPUTE
1. SLV Pvt. Ltd., entered into a contract dated 02.02.2023 with JRS Infra Pvt. Ltd.,
for the supply of construction materials for a mall at the Hebbal Industrial Area /
Outer Ring Road Junction (near Hootagalli), Mysuru.
2. As part of the project, SLV Pvt. Ltd. issued a purchase order dated 04.03.2023
to JRS Infra Pvt. Ltd. to supply the necessary construction materials and
equipment required for the mall project.
3. On 14.08.2023, SLV Pvt. Ltd. suspended all operations relating to the said
thermal power plant, due to civil unrest in the area and a corresponding advisory
issued by the State Government.
4. SLV communicated this suspension to all stakeholders, including JRS Infra Pvt.
Ltd., asserting that the project had been temporarily put on hold.
5. Due to the suspension, payments under the agreement were not presently due.
6. However, JRS Infra Pvt. Ltd. contests this position. According to JRS, the
materials as per the purchase order were supplied and delivered, and therefore,
the payment obligation is due and enforceable, irrespective of the subsequent
project suspension.
7. JRS Infra Pvt. Ltd. has raised a claim for payment of a sum of ₹2,00,00,000/-
(Rupees Two Crore Only), along with applicable interest, arising from the
purchase order dated 04.03.2023.
8. Given SLV Pvt. Ltd.’s refusal to release the payment, JRS Infra Pvt. Ltd. has
invoked the conciliation clause under the SLV Conciliation Scheme
9. They issued an invitation notice to initiate conciliation proceedings. This
invitation was duly accepted by SLV Pvt. Ltd.
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INVITATION FOR CONCILIATION
Sanjay. J
Chairman at JRS Infra Pvt. Ltd..,
Hebbal Industrial Area, Mysuru.
16th October, 2022
Sharmila. G.M
MD at SLV Pvt. Ltd..,
Kuvempunagar, Mysuru.
Subject: Invitation to participate in Conciliation Proceedings.
Respected Sir/ Madam,
I hope this letter finds you well. I am writing on behalf of at JRS Infra Pvt. Ltd, in
my capacity as Chairman, to formally extend an invitation to you under Section 62
of The Arbitration and Conciliation Act, 1996 and your organization to participate
in conciliation proceedings about our ongoing disputes regarding quality of
products supplied, financial transactions, and compensation claims.
Invitation to Conciliation:
With the aim of fostering open communication and seeking mutually agreeable
solutions, we propose that both parties engage in a conciliation process. This
process will be facilitated by a tribunal consisting of three (3) neutral conciliators
who will guide us through discussions and negotiations, assisting us in reaching a
resolution that serves the interests of both parties.
We believe that participating in conciliation will provide us with the opportunity
to address the concerns that have arisen between our organisations, allowing us
to move forward and continue our business relationship constructively.
Process and Schedule:
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Upon your agreement to participate, we will work together to select a tribunal of
qualified and impartial conciliators. We are committed to working collaboratively
to ensure that the process is efficient and respects the interests of both parties.
Please let us know on or before 15th November, 2023 [within 30 days] whether
you agree to participate in the conciliation process. If no response, then it will be
regarded as a declination. We believe that through sincere engagement and a
willingness to find common ground, we can overcome the challenges we currently
face and pave the way for a positive resolution.
Thank you for your attention to this matter. We look forward to your response
and the opportunity to work together towards a mutually beneficial resolution.
Sincerely,
Sanjay. J
Chairman at JRS Infra Pvt. Ltd..,
Hebbal Industrial Area, Mysuru
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REPLY TO THE INVITATION
Sharmila. G.M
MD at SLV Pvt. Ltd..,
Kuvempunagar, Mysuru
2nd November, 2023
Sanjay. J
Chairman at JRS Infra Pvt. Ltd..,
Hebbal Industrial Area, Mysuru.
Subject: Reply to the invitation sent by JRS Infra Pvt. Ltd
Respected Sir/ Madam,
We acknowledge receipt of your invitation for conciliation regarding the ongoing
disputes between SLV and JRS. We appreciate your proactive approach in seeking
an amicable resolution to the issues at hand.
We share the common goal of finding a fair and equitable solution to the matters
that have arisen between our respective companies. We believe that open and
respectful communication can potentially lead to a resolution that benefits both
parties and helps preserve our business relationship.
While we are committed to engaging in the conciliation process, we would like to
request a brief discussion or exchange of information before the formal
conciliation session. This will allow us to better understand each other's
perspectives and concerns, which we believe will facilitate a more productive
conciliation process.
Please let us know a suitable time for a preliminary discussion or information
exchange. We are hopeful that with a spirit of cooperation and mutual
understanding, we can navigate through the challenges and find a satisfactory
resolution that meets the interests of both SLV and JRS.
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Thank you for your understanding, and we look forward to working towards a
positive outcome.
Sincerely,
Sharmila. G.M
MD at SLV Pvt. Ltd..,
Kuvempunagar, Mysuru
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CONCILIATION AGREEMENT
This Conciliation Agreement is entered into on this 26th day of November, 2023,
by and between:
JRS Infra Pvt. Ltd..,
Represented by its Chairman, Sanjay. J
Residing at Mysuru, Bangalore.
Hereinafter called as the “Claimant”
and
SLV Pvt. Ltd..,
Represented by its MD, Sharmila. G. M
Residing at Mysuru, Bangalore,
hereinafter called as “Respondent”
WHEREAS certain disputes and differences have arisen and are subsisting
between the aforesaid parties, the matter will be referred to the tribunal
consisting of three (3) conciliators.
S. Ananya, appointed by the claimant, Chairman of Vindhyachal Thermal
Power Station, Expert in thermal power technology.
S. Arbind, appointed by the respondent, President of the Prestige Estates
Projects Ltd.
Sahana. P.S., appointed by the above two (2) conciliators to be the Presiding
Conciliator, Chemical Engineer.
The seat of Conciliation shall be in banglore, Karnataka , India. The language
of the arbitration proceeding shall be English.
The conciliation shall have jurisdiction over all disputes, claims, or
controversies arising out of or in connection with the sale of construction
materials between February-March, 2023, including disputes arising therefrom.
The Parties shall keep all conciliation proceedings, including the existence,
content, and result of any conciliation settlement, confidential, except as may be
required by applicable laws or to enforce any arbitration award.
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The costs of the conciliation, including the fees and expenses of the arbitrators,
shall be borne as determined by the conciliators. Each Party shall be responsible
for its legal representation and costs incurred in presenting its case.
Both Parties shall have the right to present witnesses and produce
documentary evidence before the Conciliators. Each Party shall bear the costs and
expenses associated with the production of its witnesses.
Having agreed to the above by both parties, the said parties affix their
signatures to this agreement this 2nd day of December, 2023, Bengaluru.
JRS Infra Pvt. Ltd.,
Represented by Sanjay. J SLV Pvt. Ltd.,
Represented by Sharmila. G. M
Party 1 Party 2
Represented by his counsel Represented by his counsel
Shiva Shridhar
Witnessed by:
Shreehari
ajay
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OPENING STATEMENT OF THE CONCILIATOR
CONCILIATOR 1 – CHAIRMAN OF ASIAN PAINTS
Good [Morning/Afternoon/Evening], everyone.
My name is S. Ananya, and I am the conciliator appointed by the claimant [MF].
I am the Chairman of Vindhyachal Thermal Power Station , Expert in thermal
power technology having an experience of about 25 years. And 6 years of
experience as a conciliator.
I am here to assist you in resolving your issues through conciliation. I appreciate
the parties for electing an alternative dispute resolution system.
CONCILIATOR 2 – PRESIDENT OF ALL INDIA PAINTERS ASSOCIATION
Good [Morning/Afternoon/Evening], everyone.
My name is S. Arbind, and I am the conciliator appointed by the respondent [LP].
I am the President of the President of the Prestige Estates Projects Ltd. , having an
experience of 37 years in the Construction business.
Let my experience and expertise in the field pave the way for effective
reconciliation between the parties.
CONCILIATOR 3 – CHEMICAL ENGINEER
Good [Morning/Afternoon/Evening], everyone.
My name is Sahana, and I am the conciliator appointed by the above two (2)
conciliators and will be presiding over the proceeding.
I am a Chemical Engineer working for India’s leading paint company, Adani Power
Ltd.
I would like to set certain ground rules for the conciliation process:
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1. Attack the problems and concerns at hand. Do not attack each other.
2. Avoid positions; rather, express yourself in terms of needs and interests
and the outcomes you would like to realize.
3. Work for what you believe is the most constructive and fairest agreement
for both of you.
4. Do not interrupt when the other party is speaking. You will have an equal
opportunity to speak on every issue presented for discussion.
5. Do not use language that blames or finds fault with the other. Be respectful
of others.
6. Listen carefully and try to understand what the other is saying without
being judgmental about the person or the message.
Dated: 15th January, 2024
Signed by the Conciliators:
1. S. Arbind:
2. S. Ananya:
3. Sahana:
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IN THE CONCILIATION PROCEEDINGS BEFORE THE CONCILIATORS
AT BENGALURU
Between:
JRS Infra Pvt. Ltd., “Claimant”
and
SLV Pvt. Ltd “Respondent”
STATEMENT OF CLAIMS
Shiva
Counsel for the Claimant
Office in Bangalore, Karnataka
Shreehari
Co-counsel for the Claimant
Office in Bangalore, Karnataka
For the kind perusal of
S. Ananya
S. Arbind
Sahana. P. S
Conciliators
Karnataka
I, Shiva, Claimant’s counsel, in my true sense, state the following arguments:
Background:
1. SLV, engaged in commercial business, regularly placed purchase orders
with JRF for substantial quantities of paint.
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2. Between February 2023 and March 2023, supplied the necessary
construction materials and equipment required for the mall project, which
was subsequently used for clients' projects.
3. Suspension all operations relating to the said thermal power plant, due to
civil unrest in the area and a corresponding advisory issued by the State
Government.
4. JRS the materials as per the purchase order were supplied and delivered,
and therefore, the payment obligation is due and enforceable, irrespective
of the subsequent project suspension.
DELIVERY OF THE REQUIRED MATERIAL:
5. However, contests this position. According to JRS, the materials as per the
purchase order were supplied and delivered, and therefore, the payment
obligation is due and enforceable, irrespective of the subsequent project
suspension
Supporting Documents:
6. JRF supports its claims with the appropriate documents. The conciliators
will be provided for their kind perusal.
a. The copy of the order placement with JRF
b. The copy of purchase order.
c. The copy of order was delivered by the transport company.
Losses and Damages Incurred:
7. JRS Infra Pvt. Ltd. has raised a claim for payment of a sum of
₹2,00,00,000/- (Rupees Two Crore Only), along with applicable interest,
arising from the purchase order dated 04.03.2023:
a. Labour cost for the equipment: Rs 40 Lakhs
b. Material for the equipment: Rs 80 Lakhs
c. cost for transportation: Rs 20 Lakhs
d. Loss of business opportunities and defamation: Rs 60 Lakhs
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Conclusion and Request for Resolution:
8. In careful consideration of the aforementioned claims, we are seeking a
resolution that addresses the financial losses, compensates for the
damages suffered, and restores our business reputation. We believe that a
fair and equitable resolution is essential to preserve our business
relationship and avoid further escalation.
9. We are open to engaging in a conciliation process to discuss these matters
and find a mutually acceptable solution. We remain committed to resolving
these disputes amicably, with the hope of maintaining a positive business
relationship between [JRF] and [SLV].
Dated: 4th February, 2023 Shiva
[Counsel for Claimant]
STATEMENT OF DEFENCE
Shridhar
Counsel for the Respondent
Office at Mysuru , Karnataka
Shrishyly
Co-counsel for the Respondent
Office at Mysuru , Karnataka
For the kind perusal of
S. Ananya
S. Arbind
Sahana. P. S
Conciliators
Banglore
I, Shridhar, Respondent’s counsel, in my true sense, state the following
arguments:
Background:
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1. SLV, a duly incorporated entity situated in MYSURU, has historically
maintained a business relationship with JRF, which is situated in Karnataka
itself.
2. During the period from febuary 2023 to march 2023, pursuant to purchase
orders placed by SLV, JRF supplied necessary construction materials and
equipment to required for the mall project.
3. Suspension all operations relating to the said thermal power plant, due to civil
unrest in the area and a corresponding advisory issued by the State
Government.
4. Issues concerning payments under the agreement were not presently due
emerged.
Counter Allegations:
5. SLV categorically denies any responsibility for the alleged delivery of the
material.
6. SLV firmly asserts that they communicated this suspension to all
stakeholders, including JRS Infra Pvt. Ltd., asserting that the project had been
temporarily put on hold. Therefore, payments under the agreement were not
presently due.
7. LP contends that it discharged its contractual obligations due to the
suspension.
Supporting Documents:
8. SLV supports its claims with the appropriate documents. The conciliators will
be provided for their kind perusal.
a. The copy of the order placement by SLV.
b. The copy of notice of suspenpension all operations relating to the said
thermal power plant, due to civil unrest in the area and a corresponding
advisory issued by the State Government.
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c. The copy of communicated this suspension to all stakeholders, including
JRS Infra Pvt. Ltd., asserting that the project had been temporarily put on
hold..
Conclusion and Request for Resolution:
9. SLV expresses its willingness to engage in conciliation proceedings to seek an
equitable resolution that respects the rights, responsibilities, and interests of
both parties.
10.SLV emphasizes its commitment to resolving the matter amicably, while
upholding its position that the material were not received.
Dated: 28th March, 2023 Shridhar
[Counsel for Respondent]
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OBSERVATION OF THE CONCILIATOR
The Conciliators conducted several independent sessions and joint meetings and
observed that:
1. Both JRF and SLV have exhibited a willingness to engage in the conciliation
process in good faith and have actively participated in discussions aimed at
resolving their disputes.
2. Throughout the proceedings, the Parties have engaged in respectful and
constructive communication, facilitating the exchange of information and
viewpoints to arrive at a resolution.
3. Both JRF and SLV, sought for expert opinion on thermal power. The
presiding conciliator also reported his observation based on the expert’s
report, considering the same, parties acknowledged each other’s claim
partially and agreed to withdraw any pending legal actions against each
other relating to the matters in question.
4. The conciliator's observation reflects the Parties' commitment to the
conciliation process and their genuine efforts to seek a resolution to their
disputes in accordance with principles of justice, fairness, and equity.
Dated: 21st July, 2023
Signatures of the Conciliators:
1. S. Ananya:
2. S. Arbind:
3. Sahana. P. S:
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SETTLEMENT AGREEMENT
This settlement agreement entered into on 19th August, 2023 between JRS Infra
Pvt. Ltd., identified by Shiva[counsel] and SLV pvt ltd. , identified by Shridhar
[counsel].
1. Disputes and differences had arisen between the parties hereto and Case No.
21/2023 was filed by the parties on 15th January, 2023 before the Conciliators.
3. Meetings were held during the process of Conciliation from 15 th January to 21st
July, 2023 and the parties have with the assistance of the conciliators voluntarily
arrived at an amicable solution resolving the above-mentioned dispute and
differences.
4. The parties hereto confirm and declare that they have voluntarily and of their
own free will arrived at this Settlement in the presence of the Conciliator.
5. The following settlement has been arrived at between the parties hereto:
a. SLV acknowledges JRF's counterclaims and agrees to compensate MF as
follows:
1. Labour cost for the equipment: Rs 20 Lakhs
2. Material for the equipment: Rs 60 Lakhs
3. cost for transportation: Rs 20 Lakhs
4. Loss of business opportunities and defamation: Rs 10 Lakhs
b. JRF agrees amicably for the said amount after due considerations of the
Conciliator’s and expert’s reports regarding the quality of the paint.
c. MF agrees to tender a partial settlement payment of Rs 1,10,00,000/-
( ONE CRORE AND TEN LAKHS ONLY to JRF, which represents a mutually
agreed settlement of the claims made by JRF.
d. LP concurs to waive any further claims for applicable interest, arising from
the purchase order dated 04.03.2023.
6. By signing this agreement the parties hereto state that they have no further
claims or demands against each other with respect to Case no. 21/2023 and the
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parties hereto through the, process of Conciliation in this regard have amicably
settled all disputes and differences.
Signatures of the parties with date:
1. JRF PVT. LTD, represented by Sanjay. J:
2. SLV PVT. LTD , represented by Sharmila. G. M:
Signature of the Counsel with date:
1. Shiva:
2. Shridhar:
(Additions/alternations in the form as per requirement are permitted)
Signature:
Date: 19th August, 2023
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