ALTERNATIVE DISPUTE RESOLUTION CELL

NATIONAL LAW UNIVERSITY JODHPUR

INTRA - UNIVERSITY ALTERNATIVE DISPUTE RESOLUTION COMPETITION 2020

PROPOSITION 1

Organized by:
Alternative Dispute Resolution Committee, National Law University, Jodhpur
adrintra.nluj@gmail.com

© Alternative Dispute Resolution Committee.

 GENERAL BACKGROUND INFORMATION
(The Parties)
Bokila Ken
 Bokila Ken is a multi-national
clothing brand with headquarters in
Incheon, South Korea. It is the
flagship brand of the Zenditex Group
with a presence in over 50 countries.
The company follows the network
marketing model of business, wherein
the network of distributors and
salespeople are the building blocks of
the company.
 Bokila Ken has been instrumental in
revolutionising the fashion industry
by providing a quick turnover of
designs from catwalk to closet at a
very low cost. Bokila Ken has been
able to achieve this feat through its
vast network of salespersons selling
directly to the end consumers.
 As one of the biggest retail brands in
the world, it has significant influence
over fashion trends and is affiliated
with the most coveted designers
across all countries.
© Alternative Dispute Resolution Committee.
Ms. Rashi Desai
 Ms. Rashi Desai is a famous
Bollywood actress, filmmaker, model
and singer based out of Mumbai. In
the past couple of years, she has
produced and starred in leading roles
in blockbuster movies such as Peppa
Pig Retribution, Champaran to
Chennai, 5 Idiots, to name a few.
 She is also one of the prominent
celebrities in India with an extensive
fanbase and social media following.
She has the largest Twitter following
in India with over 80 million
followers and over 120 million on
Instagram. She actively speaks out on
pressing issues which has contributed
to her widespread popularity with the
masses to great extent.
 Being such an influential personality
in India, she is affiliated with multiple
brands as their celebrity spokesperson
across various fields such as
electronics, consumer goods, and
fitness and healthcare products.
 GENERAL BACKGROUND INFORMATION
In 2013, Bokila Ken entered the Indian
market and quickly expanded to all parts of
the country. As a part of their promotional
campaign they engaged certain celebrities to
endorse their brand. In October 2017, they
entered into an endorsement agreement with
Ms. Rashi Desai appointing her as the
celebrity spokesperson for Bokila Ken. The
agreement provided for fixed 2 days of
shooting every 3 months before the launch
of a seasonal collection and any additional
days as may be required for personal
appearances in marketing and PR events
which may not exceed 5 days every six
months. The agreement contained an
exclusivity clause wherein the celebrity was
restricted from endorsing any competitor of
Bokila Ken for the duration of the
agreement. The agreement was to continue
for a period of 3 years with an additional 1-
year cooling-off period. The agreement could
be terminated by either party by written
notice of one month in the event of breach
of any duties and covenants set within the
terms of the agreement or upon occurrence
of material adverse change such as sale of the
company or loss of credibility or reputation
of one party on account of the conduct of the
other party.
In March 2020, several media outlets were
reporting the social and environmental cost
© Alternative Dispute Resolution Committee.
of the fast fashion industry and its substantial
contribution to global carbon emissions. The
issues which primarily came to light were
regarding forced employment, low wages,
inadequate living conditions and the potential
health risk due to the direct exposure to
carcinogens without adequate safety gear in
the factories. Ms. Rashi Desai shared a series
of posts on her social media platforms
highlighting these issues. She also shared a
viral video of a 11 year-old boy undergoing
treatment for pulmonary fibrosis – a deadly
lung disease linked to pitiable working
conditions in textile factories employing child
labour. The netizens started a boycott
campaign with the hashtag
#boycottfastfashion #supportlocaltraders
#justiceforlabourers which quickly gained
momentum. Following this, Bokila Ken
withheld the payment which was due to Ms.
Rashi Desai as per the terms of the
endorsement agreement. Meanwhile, Ms.
Rashi Desai was approached by another
clothing company advocating sustainable
fashion which has also disrupted the fashion
industry with its patented, durable, low-cost
and eco-friendly family of fabrics.
In May 2020, a few news reports were
published mentioning the names of certain
textile manufacturers responsible for these
violations. One of these named
manufacturers was the major textile supplier
to Bokila Ken. The sales of Bokila Ken
plummeted as a result of an exodus of
salespeople and the social media campaign
against the company.
Mr. Tim Cooker, the CEO of Bokila Ken
India accused Ms. Rashi Desai of using her
substantial social media influence to turn the
public sentiment against Bokila Ken causing
harm to the reputation of the Bokila Ken.
Subsequently in June, Bokila Ken sent a
termination notice to Ms. Rashi Desai. On
the other hand, Ms. Rashi Desai accused
Bokila Ken for breach of the terms of the
agreement by denying the payment due to her
approximating Rs. 20 Crores and for
terminating the agreement without cause.
Certain media houses caught wind of the
© Alternative Dispute Resolution Committee.
ongoing tussle between the management of
Bokila Ken and their celebrity spokesperson
Ms. Desai. the story was published in The
Bombay Closet.
Ms. Rashi Desai filed a suit against Bokila
Ken in the High Court of Bombay to claim
her dues as per the terms of the agreement
along with damages for wrongfully
withholding payment and for the arbitrary
termination of the agreement. The High
Court remanded the matter to mediation in
accordance with the dispute resolution clause
in the agreement. To resolve the issues
between the parties, Mr. Tim Cooker and Ms.
Rashi Desai have agreed to meet at the Lyatt
Hotel in Mumbai for a mediation session
with their legal counsels.