Vishal ran a hardware store that sold wire, screwdrivers, hammers, etc. His longtime supplier was Kumar Tools. Vishal usually placed large orders, worth several lakhs of rupees, and after they were delivered, paid within two months.
In January 2010, Vishal ordered goods worth Rs 3 lakh. As usual, Kumar Tools delivered and raised an invoice. Unfortunately, products worth Rs. 1 lakh were defective, and customers returned them.
Vishal wrote to Kumar Tools about the defective goods and asked them to either replace them or issue a new invoice. However, to his dismay, Kumar Tools refused to replace the products or issue a new invoice, and sued him in court.
While Vishal eventually proved that the products were defective, the long and bitter court battle destroyed the Vishal and Kumar Tools’ relationship. Vishal had to find a new supplier, and Kumar Tools lost an old and valued client.
Had Vishal and Kumar Tools opted for arbitration, the dispute would probably have been settled not only quickly but also amicably.
Disclaimer: All characters and names are fictional. This is a public interest story, produced by House Court, an online arbitration platform