NYAYSHASTRAM’S

1ST RATAN K SINGH NATIONAL NEGOTIATION COMPETITION

General Information for Knockout Round

ATR is a famous multinational company dealing with fast moving consumer goods
(FMCG). It is counted amongst the top five FMCG companies in Asia. The products
sold by ATR, especially the ayurvedic cosmetic products are highly famed across South
India. Apart from its own home-grown brands of ayurvedic cosmetics and toiletries, it
has acquired a lot of famous brands of ayurvedic toiletries.
One of the famous brands of highly acclaimed ayurvedic soaps acquired by ATR in
2011 is “Vandika”. Vandika has been one of the prominent ayurvedic soap brands in
major parts of India from way back in 1920s and is immensely popular in the state of
Jharkhand, a mostly tribal dominated state of the country. The brand was started in
the year 1920 under the name of Vandika by a tribal small-scale business man Mr.
Tumbu Kola, in honour of their community deity “Goddess Vandika”. Subsequently,
the business of Vandika grew manifold and was a business worth 1 billion at the time
of its acquisition by ATR. Vandika’s business was now handled by Mr. Tiku Kola, the
great grandson of Mr. Tumbu Kola.
During the course of negotiation for acquisition of the Parties reached to an agreement
that after the acquisition ATR shall have the exclusive right to deal in Vandika soaps
all over India and abroad except in the state of Jharkhand. All the registered
trademarks for the brand of ayurvedic soaps Vandika were assigned to ATR. The
acquisition amount paid by ATR to Mr. Tiku Kola was 0.92 billion INR.
Subsequently, in 2020, ATR became aware of Vandika soaps manufactured by Mr.
Tiku Kola was listed for sale on online platform www.Rabbitcart.com . ATR reached
out to Mr. Tiku Kola on the ground that this was in violation of the acquisition
agreement entered in 2011. On the other hand, Mr. Tiku Kola was of the view that he
hasn’t violated the acquisition agreement as any restriction on online sale was not fixed
in the acquisition agreement. Moreover, the brand name Vandika used by Mr. Tiku
Kola on its ayurvedic soap was artistically different from the trademarks assigned to
ATR and Mr. Tiku Kola was statutorily permitted to use the mark “Vandika” under
Section 35 of the Indian Trademarks Act, 1999.
The Parties have agreed to negotiate in order to resolve this dispute.

Disclaimer:
All names, be it companies or individuals in this scenario / problem are
fictitious and are drafted out for the sole purpose of the negotiation
exercise

Page 1 of 1 20th October 2020