Lex Negotium

GENERAL FACTS

SRS Hospital, the only regional hospital in Barasat,

entered into a three-year contract with Proactive and

Quality Resources (P.) Ltd. (PQR), a company that

provides physical therapy. Under the contract whenever

a patient in the hospital needs physical therapy, the

hospital contacts PQR which sends over a licensed

physical therapist. The hospital agreed to pay PQR an

annual retainer of Rs. 3,00,000/- to cover the costs of

maintaining a list of readily available physical

therapists. The hospital also agreed to pay an hourly

rate of Rs.500/- for actual services rendered. Out of Rs.

500/- PQR pays Rs. 350/- to the therapist.

During the first year of service contract, SRS Hospital

received a number of complaints from patients. Worried

about the potential liability and hospital's reputation,

the hospital terminated the contract with PQR.

PQR issued a notice to the hospital for wrongfully

terminating the service contract and is seeking Rs.

11,50,000/- as damages, which consists of Rs.

6,00,000/- for the annual retainer fee over two years,

Rs. 2,50,000/- for unpaid services, and Rs. 3,00,000/-

for the anticipated profits over the remaining two years

of the contract.

In order to resolve the issue amicably, the parties have

decided to try and settle their differences through a

round of negotiation. The parties have the option to be

represented by a legal counsel though it's advisable that

the parties should make the representation through the

legal counsel for better chances of reaching a negotiated

settlement.

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Mode of dispute settlement: Negotiation (mutually
decided by the parties)
Venue: Adamas University, Barasat Kolkata
Time: 01.30 pm to 03.30 pm