VIVEKANANDA INSTITUTE OF PROFESSIONAL STUDIES

Vivekananda School of Law and Legal Studies

Pitampura, Delhi-110034

PSDA – ALTERNATIVE DISPUTE RESOLUTION

TOPIC – NEGOTIATION

Submitted by
TANVI GUPTA (11117703821) (Counsel for The Mittals)
ARVIND KUMAR (11617703821) (Counsel for Mr. Papija)
DEV UPMANYU MANAN (14417703821) (Mr. Papija)
HARSHA KUMAR (36717703821) (Mr. Mittal)

Semester & Section: 5-C

Submitted To: Dr. Deepali Vashist

 INDEX PAGE NO

1. FACTS 1
2. OPENING 2
3. BARGAINING 3
4. CLOSING 4
5. SETTLEMENT REACHED 5
FACTS

Mr Parth Mittal along with his wife, Ms Purnika Khanna (hereinafter they will be called as
Mr and Mrs. Mittal or Mittals), shifted to New Delhi in the month of March, 2019 with the
motive to explore more career opportunities. After Mr. Mittal’s Grand-Parents passed away
unexpectedly, the couple got inheritance and they decided to buy a flat in some residential
scheme to raise their family. Both are working in multinational companies.

One of Purnika’s co-worker, Shivank Gupta, informed her of a new residential scheme titled
as“Sarvodaya” in Gurgaon near Iffco Chowk, in which he has already bought an apartment
for investment, from a well - known developer Papija. Mittals also saw an advertisement
which promoted the developer as an awardee of “Best developer” in North India. It was
mentioned that the possession of a well-furnished and luxurious flat will be given in three
years including the facilities of swimming pool, departmental stores and restaurant.
Assurances regarding conformity of the project to the applicable norms, including sufficient
green area etc., were especially emphasised in the advertisement.

In September 2019, Mittals visited the Papija developer. There they were informed that the
developer had recently bought the land where the apartments were to be built. However, the
Haryana Urban Development Authority (HUDA) has not given permission for the said plan.
However, the couple were assured that the plans will be definitely sanctioned as there is no
Shortcoming and Occupancy Certificate (OC) will also be received on completion.

On this, Mr and Mrs Mittal paid the booking amount and thereafter agreed to pay as per the
demand raised by the developer from time to time. The cost of the flat was Rs. 42 lakh which
they paid. They were given possession of the apartment on time. They started residing in the
same immediately and utilised one room as a Fashion Boutique which was a passion project
for Purnika as the extra income helped with their monthly expenses.

After a year in possession, they began to realise that material used was substandard in the
construction of the property. The water and sewage lines were not installed as per the
requirements of construction. This led to continuous problems for the residents, including
Mittals, and they had to regularly pay for the maintenance of the same.

In October 2023, the Haryana High Court passed an order for the sealing of unauthorised and
illegal houses and the residents of “Sarvodaya”found out that the apartments had never been
approved by the Haryana Urban Development Authority (HUDA) and the apartments were
built illegally. The apartments were subsequently sealed.
The Mittals, like other occupants, had to vacate their properties immediately. In October
2023, Mittal filed a case in Consumer Court. Papija told Mittal to withdraw the case and
invited Mittals to negotiate and settle the dispute.

1
 ARGUMENTS FORWARDED

OPENING

In the initial phase, both parties and their counsels made introductory statements in which
the counsels for both parties explicitly stated that they are only present in an advisory
capacity and do not contain with them the power to make any binding decision. And the
parties in this session have decision-making power, and both parties agreed that decisions
taken in this section would be binding on all parties. After this, both parties proceeded to
explain their situation and their demands from each other. These demands were formed
into agendas for the session.

Demands/Objective of Mittals: Allocation to new residence; Compensation of 42 lakhs

rupees

Demand/Objective of Papija: Withdrawal of suit by the Mittals.

As soon as an agreement was formed on the said agendas or objective counsels, both parties
engaged in heated arguments and raised points in favour of their clients, which included
threatening the other parties with suits, fines, negligence, a trial, etc.

2
BARGAINING

In this stage, the parties engage in settlement with each other by understanding the other
party’s situation and, hence, making compromises for the same.

Mr. Papija offered theMittals 3 months’ rent-free accommodation in his residential scheme
of ‘sarathya’ to which the Mittals countered by saying they want permanent allocation in the
said residential scheme with their 42 lakhs adjusted in the price of the said residential
scheme.

To this, Mr. Papija countered by saying he is willing to throw in Rs. 25,00,000 as

compensation to the Mittals for their losses, in addition to the aforesaid proposal by him. The
Mittals agreed to the same but were not satisfied with the offer that they had made.

Then the counsel for the Mittals entered into the bargaining and threatened the opposite
party with a criminal proceeding against them under Section 415 of the IPC of 1860.

Responding to this, the counsel for Mr. Papija reminded the opposite counsel that the whole
purpose of this session is to avoid litigation and its proceedings and asked what else the
the opposing party wants.

Afterwards, a few words were exchanged between the counsels for both parties, and they
came to the conclusion that Mr. Papija will, in addition to the already agreed amount, pay Rs.
8,00,000/- to the Mittals, and the Mittals will be waiving off Rs.9,00,000/- from their
demanded compensation of Rs. 42,00,000/-.

3
CLOSING

1. Mr. Papija agreed to give Rs. 25 lakhs as compensation in addition to Rs. 8,00,000/-
(which would be paid by him within 30 days of after all other cases related current
subject matter and cause of action have been disposed of).

2. Mr. Papija agreed to give the Mittals 3 months’ rent free allocation in ‘sarathya’
residential scheme of his.

3. The Mittals agreed to waive off Rs. 9,00,000/- from their demanded compensation.

4
 SETTLEMENT REACHED

1. Mr. Papija has agreed and is liable to give Rs. 25 lakhs as compensation in
addition to Rs. 8,00,000/- (which would be paid by him within 30 days of after
all other cases related current subject matter and cause of action have been
disposed of) to the Mittals.
2. Mr. Papija has agreed and liable to give the Mittals 3 months’ rent free
allocation in ‘sarathya’ residential scheme of his.
3. The Mittals have agreed and are liable to waive of Rs. 9,00,000/- from their
demanded compensation from Mr. Papija.

Name of the Party:

Signature :
Counsel Name (with Sign.):

Name of the Party:

Signature:
Counsel Name (with Sign.):