Case Study: Varenya group, was a well-known group in Kerala dealing in gold, diamond jewellery and related products. The group was founded by Vipul Varenya, who had three children, Vardhan, Viraj and Veena. All his child

CS Professional · Arbitration, Mediation and Conciliation · PYQS · June 2024
Case Study: Varenya group, was a well-known group in Kerala dealing in gold, diamond jewellery and related products. The group was founded by Vipul Varenya, who had three children, Vardhan, Viraj and Veena. All his children were well educated and gradually, Vipul handed over the businesses to his children and enjoyed retirement life. However, he was always available for any advice, but refrained from interfering in the business matters. Vardhan, being the eldest one had a different attitude. He wanted things to happend his way and was very ambitious. On the contrary, Viraj was calmer and believed in expanding the business gradually. Veena was supportive of her brothers and always gave them suggestions when needed. However, all was not well within the family. There seemed to be a cold war between the brothers and Veena was troubled with this. It was no more a happy family. With Vardhan intending to reorganize the companies and expand the business to US and South Asia, there was a conflict between the brothers. Situation was such that both the brothers could not stand each other. Veena was very concerned and discussed the same with her father. Vipul, was thinking if the property/business needs to be distributed between his children to avoid further conflicts. He consulted his close friend and confidante Har, a Company Secretary and Senior Partner of Har & Co. LLP, Company Secretaries. Har was known to all the members of Varenya family and they trusted him for his insights. Veena wanted to appoint Har to mediate the issue between Vardhan and Viraj. Vipul, was also in agreement with Veena's proposal. However, he was unsure if the mediation settlement so concluded would hold validity in Court of law, considering the conflict between Vardhan and Viraj. In this background, answer the following: Draft a mediated settlement agreement, assuming necessary facts.

Answer & Explanation:

Mediated Settlement Agreement This agreement made this (Insert Date) day of (Insert Month) , 20 (Insert Year) at (Insert Place) BETWEEN (Full description and address of Vardhan) of the ONE PART AND (Full description and address of Viraj) of the OTHER PART. WHEREAS certain disputes and differences have arisen and are subsisting between the aforesaid parties relating to (Details of the dispute, e.g., reorganization of companies, expansion plans, and distribution of business assets) . AND WHEREAS the Parties submitted their dispute(s) for an amicable settlement in accordance with the (Mediation Rules, if any, or general mediation principles) ; AND WHEREAS the parties agreed to settle the dispute on mutually acceptable terms as finalised during the course of mediation. NOW IT IS AGREED BETWEEN THE PARTIES HERETO AS FOLLOWS: The undersigned parties agree to the terms and conditions of this Mediation Settlement Agreement ('Agreement'), in full settlement of any and all claims which have been or could have been asserted in this action. First party (Vardhan) agrees to provide all the raw materials to the second party (Viraj) in exchange for the sum of ₹ 10 lacs ('Settlement Sum'). Second party (Viraj) agrees to make the full payment of Settlement Sum by 02nd August, 2023 (the 'Settlement Date'). Simultaneous with payment of the Settlement Sum in full at the Settlement Date, the parties shall execute and exchange mutual general releases. Simultaneous with payment of the Settlement Sum in full, the First party shall execute and deliver any documents necessary to effectuate the transfer of raw materials. The parties mutually agree that neither of them shall solicit financial advisors or employees of the other for a period of two years from the date of this Agreement. Each party shall bear its own fees and costs for this action. (Additional clauses as agreed, e.g., specific business division, asset transfer details) (Further clauses) (Further clauses) etc. In order to carry out the terms and circumstances of this mediation settlement agreement, the parties shall execute and exchange any further documents that may be deemed appropriate. IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands and seals the day and year first hereinabove written. ____________ Signed by the above named 1st party (Name, Signature and Details) ____________ Signed by the above named 2nd party (Name, Signature and Details) Witnesses 1. ____________ (Name, Signature and Details) 2. ____________ (Name, Signature and Details) ____________ Authenticated by Mediator (Har, Company Secretary)

Topics: Mediation and Conciliation

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