5 Intra University Alternative Dispute Resolution Competition, 2019 17 - 18 AUGUST, 2019 Proposition For Mediation

5TH INTRA UNIVERSITY ALTERNATIVE DISPUTE RESOLUTION COMPETITION,
2019
17TH- 18TH AUGUST, 2019
PROPOSITION FOR MEDIATION
State of Vada, is a small coastal state situated in the south eastern part of country of Sambhar. It
has people from various parts of the country who are coming for various job opportunities
especially in IT sector for past 20 years. The city of the Chutney, situated in State of Vada, was
indeed declared to be the “software hub” of the country. To cater the needs of the rising population,
more restaurants and food chains started coming up. This led to increase in the online food delivery
services. In December 2018, few engineering students launched a new application (app) called as
“Easy Bhojan” (EB). This app allows any user who has installed it in their smartphone, to select
any restaurant/ food delivery outlets registered with EB and order food from the menu and get the
delivery at their place. This app had several features including-
 Free delivery services within a vicinity of 10 km.
 First 5 orders with 70 % discount provided the order exceeds Rs. 200.
 40 % cash back for the usage of debit/credit cards of certain private banks.
 Discount coupons up to 45% on food ordered from various restaurants on daily basis.
 Combo offers of meals with conditions.
 Certain special offers from time to time for anniversaries, special occasions, etc.
EB app was mega hit in the city of Chutney and got quite popular within 2 weeks of its launch.
The increasing popularity of EB app led to the creation of similar apps like Foodie,
VeetukuSaapadu, TastyKhaana, etc. All the apps indeed created a revolution in the food delivery
services within the city of Chutney. This in turn led to most of the restaurants and food delivery
outlets including dabba’s, cafes, small fast food joints, sweet shops, bakeries, etc. to tie up with
EB and similar apps for providing better services. EB and such apps charge a commission amount
of 20-30 % on each delivery as these apps provide easy marketing and wider customer base.
Despite the increasing popularity of such apps, there were a minority of such restaurants and food
delivery outlets who found it totally unnecessary to tie up with these apps for reaching the public.
They strongly believed that tying up with such apps would not at all be beneficial as it will eat into
their profits.
In March, 2019, State of Vada passed its Finance bill for the year with a huge change in the tax
rates. One of the striking features of the bill for the current financial year was that the service tax
imposed on the restaurants and food delivery outlets were increased from 10% to 18%. In addition,
all the edible products (raw and processed) in general were also imposed with an increased tax rate
of 5-10 %. As a consequence of the same, all the restaurants and food delivery outlets had to
increase the rate of service. However, EB and such other apps were unperturbed by the tax revision
and continued with their offers and discounts. It allowed them to charge the revised tax without
increasing the food rates. Therefore, all the restaurants and food delivery outlets who were
associated with EB and such apps especially operating on a slim profit margin went down to zero
profits. Even few of them suffered losses and were in a verge of closing the business. Henceforth,
such restaurants and food delivery services approached the owners of these apps to allow them to
continue the service provided by these apps with a revised food rate and reduction in the
commission charged or at least modify the heavy discount offers. This was totally rejected by EB
and such apps as they consider it to be legitimate charges in lieu of the delivery and advertisement
services they are providing. They consider that the rise in tax can be covered by increasing the
service charges rather than the increase in food rates, which will create apprehension in the minds
of the customers to avail the services of the apps.
After a series of failed requests, Ms. Soniya Ahuja, owner of the one of the famous fast food outlet,
representing the interests of all the restaurants and food delivery outlets associated with EB and
other apps approaches the Vada Mediation Center (VMC) for reaching an amicable solution with
EB and other apps. EB and other apps agree for mediation and appoints Mr. Gautham Srinivasan,
the CEO of the EB to represent their common cause. In lieu of the same, VMC appoints two
mediators to carry out the mediation on 17th August, 2019 at TNNLU, Tiruchirappalli.
THE SUBJECT AREAS FOR THE CLIENT COUNSELLING ARE THE FOLLOWING:
1. Medical Negligence
2. Payment of wages and bonus
3. Live in relationships
4. Partnership

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5TH INTRA UNIVERSITY ALTERNATIVE DISPUTE RESOLUTION COMPETITION,

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