Clinical Course II

Alternative Dispute Resolution Systems

Simulation Exercises
VIII Semester of 5yr BA/BBA LLB

Marks 4x10=40

Component –I Arbitration cases

1. A dispute arose between A, B, C three neighbors on the distribution of wages paid to

the street watchmen. A & B decided to refer the dispute to X for arbitration .A & B went
for Adhoc arbitration. C challenged the Award passed by X in the court that he never
gave consent to the arbitration.
2. A, B &C referred to arbitration a dispute regarding the partition of their ancestral
property. The arbitrators passed an award whereby A gets the entire ancestral property.
B &C get some property belonging to A, B , & C which was not the subject matter of
arbitration.
3. A entered into a contract with B to supply Wheat Flour at specified rates .The contract
carries a stipulation that A is entitled to higher rates only in case of rise in price of wheat
by the Government and in case of dispute the matter will be referred to the sole arbitrator
appointed by both the parties .A then rises the rate at his will. B is intended to approach
arbitration.
4. In a suit by P’s widow for maintenance provided by P’s Will, all the parties agreed to
appoint A as the Sole Arbitrator for settling the dispute and to abide by his decision. But
one among them Mr. X refused A to be Arbitrator. Mr. X filed a suit before the District
Court, but the Court referred the matter to arbitration.
5. Company A has placed an order on B for 100 units of products. Company B offers 2
products for inspection & Company B supplies 100units of products in which 40 units are
faulty. As per the contract company B have offered 2 units for inspection before bulk
supply & got it cleared at the time of sample inspection. Both the parties had invoked
arbitration clause.
6. A an insurance Company insures B for health insurance covering all the diseases
including heart attack .Medical practitioner identified by the insurer certifies B that he
does not have any health issues as per the checklist provided by insurance Company
within one year of the insurance term, that insured B passes away. The insurance
Company refuses to pay the insured family, the compensation. The matter is in
arbitration.
7. A is the Company dealing with supply of hardware parts. B entered into an agreement
on 25.12.2018 with A for supply of hardware materials of Rs 10 Crores . After supply of

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few materials B found that the materials supplied are different from the order placed. B
has raised a dispute and invoked Arbitration Clause as per the agreement dated
25.12.2918. Matter is referred to Arbitration.

8. The director of Single Star Teleserial Pvt Ltd. sent a letter of proposal to Ms. Divya
Singh, a fresh graduate from the Film Institute, Pune proposing a role in the tele-serial,
“Asha Kiran”, after witnessing her talent at the Institute’s annual passing – out function.
The letter also included terms and conditions, which read as follows:
“i.The serial shall have a minimum of 220 episodes.
ii. You shall play a supportive role to the main female character.
iii. You shall be paid Rs.50,000/- per episode.
iv. in case any dispute arises, it shall resolve through arbitration.”

Ms. Divya Singh agreed to the above proposal and sent a formal letter of acceptance.
The telecast of the serial began. Within the first 50 episodes, Ms. Divya Singh, playing
the supportive role, attracted the attention of the tele viewers. She not only had a
favorable screen presence, but the delineation of her character, even though only
supportive, was so good, that in some sequences and scenes she over shadowed and
outclassed even the role of the heroine. Her popularity was such that she soon became the
“darling” of the viewers. Along with the popularity of the serial the commercial earnings
of the serial increases 5 times ,surpassing an all time record.
Inorder to cash in on her popularity, Ms.Divya Singh requested Single Star Teleserial
Pvt.Ltd to increase her payment from Rs.50,000/- to Rs,1,50,000/- per episode, and
became annoyingly and threateningly persistent with regard to the increase in payment.
The Single Star Teleserial Pvt. Ltd., decided to modify the story of the teleserial. In the
modification version of the story, beginning from episode number 56, the role played by
Ms. Divya Singh was discontinued by mentioning that she died in an accident. The
director of the Single Star Teleserial Pvt.Ltd., consequently ,issued a letter to Ms. Divya
Singh stating that “….in view of the modification story, your role in the serial has come
to an end.”
Being aggrieved , Ms.Divya Singh filed an arbitration application in the City Civil Court
, Bengaluru , under Section 9 of the Arbitration and Conciliation Act 1996 and obtained
permanent injunction against single Star Teleserial Pvt Ltd., “…from modifying the story
and discontinuing her acting before the completition of 220 episodes.”
After compliance with the due procedural an Arbitral Tribunal consisting of Justice
P,Q,&R was constituted before which she has raised the following issues amongst others
in her claim petition:
i. That the defendant/ Single Star Teleserial Pvt. Ltd ., has committed breach of
agreement by modifying the story and discontinuing the acting of the plaintiff/
Ms.Divya Singh,before the completition of 220 episodes.
ii. That the defendant has to be permanently prohibited from changing the story.
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iii. That the plaintiff is entitled to remuneration from all the episodes even if the story
is changed.
iv. That she is entitled to compensation of Rs.5 lakhs as compensation as she has
undergone a loss by not accepting other assignments because of the existing
contract with Single Star Teleserial Pvt.Ltd.
v. That she is entitled to damages to tune of Rs 1 lakh.

(Note :
1. Students must form a team consisting of 7 members (1 Arbitrator,2 parties , 2 counsels
and 2 witnesses.)
2. Students must choose their roles accordingly.
3. Students shall prepare documents for their respective roles as follows:
Arbitrator – Arbitration Award.
Parties – Claims petition, defence statement & Arbitration Agreement
Counsels—Arguments and related documents
Witnesses – Affidavit and other documents.
4. Choose any 1 problem mentioned above.)

Component –II Mediation cases

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1. Mr.Ashvin is working with in Bibliteck Solutions, Bengaluru for the past 15 yrs. He
is in charge of developing software for law libraries. He developed software “Am –a-
lawyer ,” for lawyers and law libraries which is highly user friendly. The software
sold like hotcake and earned record revenue of 1 crore for the company.Mr.Ashvin
came in contact with majority of the lawyers firms and law institution as he was to
arrange for the installing of the software, demonstrate the same to the buyer and also
train the end user. However,there were certain technical snags in the programme and
a special team under the leadership of Mr.Ashvin was constituted to release an
improved version of the software .The team includes some of the excellent hands in
the company.The team has made substantial progress and the whole information is in
the custody of the team leader.Mr .Ashvin served 3 months notice to the employer to
resign from the job on the ground that he has to move to Pune due to some
developments in the family which led to partition of the family property and had to
take up the management of his share of landed property. This was in conformity with
the requirement of contract of employment. There is another stipulation in contract
which prohibits the employees from starting a competing business for 2 years after
termination of contract of employment. Bibliteck Solutions insists that Mr. Ashvin
has to surrender improved version of the software as a precondition to relieve him
from the employment. Without caring for the condition Mr. Ashvin left the job and
started his own firm ‘Professional Solutions’. The objectives of the firm provided that
the firm was to work in the area of developing software for professionals to provide
better coordinated and efficient services. Biblicteck issued a legal notice to Mr.
Ashvin requiring compliance to service conditions and subsequently filed a suit
before the court. The Court has directed the parties to go for mediation.

Confidential instructions to counsel by Bibliteck:

1. Bibliteck is more interested in restricting Mr. Ashvin from carrying on his business.
The estimated market for the software in the coming 2 years is 10 crores and the
company is having neither the infrastructure nor the personnel to meet the demand.
They never mind sharing the market with any rival company.
2. As an alternative , Bibliteck wants an undertaking from Mr.Ashvin that he will not
lure the existing employees in the team to join him. The company is even ready to
pay a sum of 25 lakhs to prevent him, from doing that.

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 2 Mr. Thimmappa is aged about 60 years. He was staying with his son Mr.Ganesh,
who is working as an electrician in the HESCOM, Davanagere. On 15th August at
about 8:30 pm when they were trying to cross the high way. The son crossed the
high way but the father could not .The son started walking ahead without
understanding that his father has not crossed the road. Feeling that he may not be in
a position to keep phase with his son the father attempted to run across the road and
was hit by a motorcyclist, Mr. Sudeep, a college student who was riding without
license and was in a hurry to join the birth day of his friend. He suffered multiple
injuries. He was taken to SDM Hospital wherein he was given preliminary
treatment and later shifted to Karnataka Institute of Medical Sciences ,
Davanagere. He was discharged from the hospital after one month. Now he is
perfectly alright except for little body pain. He filed a suit claiming a compensation
of 5 lakhs. The court has referred the matter to Mediation.

Confidential instructions to counsel of Mr.Thimmappa:

Mr.Thimmappa is not particular about continuing the litigation. He knows that he is
partly at fault while crossing the road. It was not a place for pedestrian crossing.
However , he is badly in need of money.

3 Mr. Ambrish and Mr. Jayaram were members of Joint Hindu Family having Joint
Family Property bearing Sy.No. 56 measuring 1 acre 15 guntas and Sy.No. 88
measuring 25 guntas situated at Byapanahalli. Mr. Ambrish filed suit for partition
and ½ share in the above Joint Family Properties. Matter is referred to Mediation.

4 Mr. Sadanand has left his car for service in Maruthi Service Centre with the
particulars mentioned in the items record. However, after driving the car for 20 km
he found the car has not been serviced properly and though they have charged for
wheel alignment the same has not been done. Hence, Mr. Sadananda filed suit for
deficiency of service for sum of Rs. 50,000/-. Matter is referred to Mediation.

5. A and B are married from the year 2013, however, due to differences are living
separately from past 2 years. ‘A” has filed a petition seeking for dissolution of marriage
on the ground of desertion. “B” entered appearance and the matter is referred to
mediation.

(Note:
1. Students must form a team consisting of 5 members (1 Mediator, 2 parties, 2 counsels.)
2. Students must choose their roles accordingly.
3. Students shall prepare documents for their respective roles as follows:
Mediator – Suggestions & Advice

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 Parties – Claims petition, & Mediation Agreement & settlement agreement
Counsels—Arguments and related documents
4. Choose any 1 problem.)

Component –III Conciliation cases

1. ‘P’ is the employee of ‘Q’. ‘P’ was harassed and dismissed from the work by
Management. ‘P’ has approached the labour court for revocation of his termination and
release of salary. ‘Q’ says that the company is winding up and wants to settle the matter
as he cannot hire again. Matter is referred for Conciliation.
2. A female worker left her child in the crèche and was on the way to sign the muster roll,
when another co –worker assaulted her & caused injury. The question was whether she

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 could claim compensation for the injury. The employer refused to pay compensation
stating it was not in the course of employment and injury caused by another worker. The
trade union by its support to the female has called for conciliation.
3. A company was carrying on business at various places in India. It decided to close one of
its branches & retrench all the workmen who were working there in that branch. These
workmen raised an industrial dispute regarding the retrenchment not being valid.
Appropriate Government has referred the matter to conciliation.
4. A contract worker employed in a factory gets injured. The employer of the contract
worker refuses to pay him compensation. The injured worker demands compensation
through labour Union. Now both the parties have approached conciliation.
5. Employer made an offer to the Trade union which was threatening to go on strike, that if
the Trade Union withdrew strike, the workers would be paid a certain amount from
profits arising from the transfer of the Mill. The Trade Union refused the offer and in
return kept few other demands which were also refused by the employer. The matter is
referred to conciliation.

(Note :
1. Students must form a team consisting of 3 members (1 conciliation officer, 2 parties.)
2. Students must choose their roles accordingly.
3. Students shall prepare documents for their respective roles .
4. Choose any 1 problem.)

Component –IV Negotiation cases

1. A made an offer to purchase shares in B Company in June. This offer was

accepted by B Company by allotting shares to him in November. A contended
that the offer lapsed & he was not bound to take the shares. B Company sent a
notice to A for Negotiation.

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2. The Indian Postal Department is probably only one organ of the Government,
which has its post offices in remotest villages in India. However, the Department
is facing stiff competition from other courier service providers, & the urge of the
Department is also to diversify its activities. Accordingly many initiatives are
being taken in this regard.
There is one good business proposal which is pending for the consideration. The
Standard Chartered Credit Card Operators (hereinafter SCCCO) wants to use the
wide network of Indian Postal Department. Through this proposal they would like
to achieve the following goals, viz
1. The post offices will act as the agents for
a) Issuance of credit card applications to the interested clients of SCCCO
b) Collecting back the duly filled-up application for credit card from the client
c) Getting the card reached to the client from the SCCCO
d) Collection of dues from the clients of SCCCO and
e) Any such other similar agency functions to be decided later on with the
consent of the department

2.Another important function which SCCCO is anticipating the department to do

is ‘verification of the status of the applicants’- meaning before issuance of the
credit card the SCCCO would like to use post officials in general and postmen in
general to get the depositions of the application (regarding general matters and
financial status) verified. On the basis of report of verification from the postal
department the credit card company will take a decision whether to give credit
card to that client or not;

3. Finally, for each of the above mentioned agency functions the SCCCO will pay
some amount of fees (or consideration to be named later on) to the postal
Department.

The postal Office would be interested in taking up this assignment for an initial
fee of Rs. 500/- or more per application (issuance, verification and delivery of the
card) and subsequently for collection of dues all the rate of 2 or more % of the
collected amount. Through this the department can earn more revenue and
provide incentives for the postmen.

Negotiate for IPO Circle.

3. The Standard Charteres Credit card operators is an organization which has entered
into an MOU with various nationalised and Private Banks for promoting their
business of issuing credit cards in urban and rural areas. They have thought of

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 using the wide network of the postal Department for this purpose. Engaging any
private operators will be quite expensive and reliability is a problem.
They want to negotiate with the postal department on the following aspects:
a) Issuance of credit card applications to the interested clients of various banks
for which they are working;
b) Collecting back the duly filled applications for credit card from the client;
c) Once a card is issued to the applicant,delivering the card to the applicant;
d) Collection of dues from the card holders if they have not paid the same.

For the above services the Standard Charted Credit Card Operators
are prepared to pay up to Rs.750/- per application (issue, verification and delivery
of the card). Subsequently for collection of dues, they are prepared to pay up to
6% of the dues collected by the Postal Department.

Negotiate for Standard Chartered Credit Card Operators.

4. Dr.Vaidya a leading physician of Mysore purchase for the first time Nokia N72
model mobile. A Mobile having all advanced features useful for his profession for
16,000 from a Nokia showroom at Mysore. The Company being a multinational
reputed company assured the best services to Dr.Vaidya.
Dr. Vaidya was very happy and comfortable as he could reach his patients easily
and his colleagues on many occasions used to contact him for his expert advice.
This went on for 2 months later the set developed a technical snag and he could
not make use of the set properly.
Dr.Vaidya approached the company and requested to get his set repaired or
replaced immediately. The company assured him that the set will be required and
replaced within 8 days.
Dr.Vaidya contacted the company after 8 days where he was told to contact after
a week since the set has been sent to the workshop. The same reply continued for
3 months. Finally Dr. Vaidya decided to initiate legal action claiming a sum of 5
lakhs.

Now the company intends to settle the matter through Negotiation with the help
of following tips:

Nokia Company
1. They are aware of the fault
2. They are ready to pay Rs. 2,50,000/-
3. They are ready to replace with a new set.

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5. Ms. Preeti is the only daughter of the proprietor of the leading software company
in Bengaluru, Mr.Gopal Gowda. He has brought her up in an enviable
environment and had given her good education. It was decided that to give her in
marriage to Mr. Nachiketa katte, who was a software engineer. They went for an
engagement ceremony at the Taj West End Hotel. The expenditure of engagement
which amounted to Rs.4.5 lakhs was borne by Mr.Nachiketa. Mr.Nachiketa was a
multifaceted person who was involved in quite a few adventure sports and social
service activities. He was regularly donating blood. He tested positive to HIV
when he went to donate blood to an accident victim at God’s Care Hospital. He
informed this fact to Mr.Gopal Gowda and Ms.Preeti as a result of which the
engagement was broken and marriage was cancelled. Mr.Nachiketa has issued a
notice to the God’s Care Hospital threatening legal action for violation of his
privacy claiming a compensation of Rs.50 lakhs .

Confidential instructions:
1. He was suspicious of contacting HIV as he was exhibiting the symptoms
2. Being HIV positive and having pursued public service through his life, he is
not interested in marrying Preeti and ruining her life.
3. He is ready to settle down for Rs. 4.5 lakhs, the expenditure he had incurred in
engagement.
4. He wants a symbolic damages of Rs 1/- as a mark of vindication of his right
to privacy.

God’s Care Hospital is a reputed private hospital in Bengaluru. The hospital has
an unstinted record of compliance to laws, especially relating to laws of privacy,
because of which all high profile politicians and film stars take treatment at that
hospital whenever necessary. In addition the hospital is known for providing
super –specialty medical services. There are many rivals to God’s care Hospital in
Bengaluru who are waiting for an appropriate opportunity to demolish the
standing of the God’s Care Hospital. To maintain their virtue, the hospital has a
strict service condition that if any employee does anything that constitutes
violation of laws, he shall reimburse to the hospital whatever compensation or
damages the Hospital pays due to his actions.

Confidential instructions;
1. The hospital know that the revealing of information in public good
and hence it is well within the court in Mr.X vs. Hospital Z.
2. The hospital is ready to pay Rs.25 lakhs.

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 3. The hospital is ready to pay Rs. 50 lakhs if it is inevitable to save
itself from the assault or rival hospitals.
4. It wants to settle the issue by negotiating only at any cost.
5. For any reason the issue should not come to the knowledge of public.

(Note :
1. Students must form a team consisting of 2 members (2 parties.)
2. Students must choose their roles accordingly.
3. Students shall prepare documents for their respective roles .
4. Choose any 1 problem.)

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General instructions:

1. Students must form teams and perform the simulation exercise from

2. Team must choose one problem from each component and must change their roles.

3. Students are required to prepare the records in green legal sheets , hand written
and spirally bound and the same shall be submitted to the course teacher.

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