LLOYD LLOYD

LAW SCHOOL
COLLEGE
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Ladder Of Success

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S. K. MISRA MEMORIAL INTERNATIONAL

MEDIATION AND NEGOTIATION COMPETITION 3.0
&
TRUST LEGAL CLIMATE LAW STUDENT OF THE YEAR AWARD
powered by

&

in association with
LLOYD LAW COLLEGE

MEDIATION PROBLEM
PRELIMINARY ROUND - A
(GREEN ROUNDS)

Date: 25 to 27 March 2022

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EDIATION AND
Sunmark's Climate Renaissance

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Sunmark is a country with tropical climatic conditions. The country faces many environmental
issues, most notably air pollution. There are multiple automobile industries based in Sunmark.
Vehicles are a major source of air pollution as they lead to emission of harmful gases in the
atmosphere. Agrima Automobiles is the largest producer of automobiles in the country with 67%
market share. The government of Sunmark has 25% shareholding in this company.

The use of automobiles in Sunmark is not just leading to the problem of air pollution but also
predominantly responsible for causing depletion of non‐renewable sources of energy such as the
petroleum and natural gas. The citizens of the country are facing respiratory and other health
concerns directly due to the increasing air pollution. In view of this, a referendum was conducted
by the government, in which 60% of the population agreed that an alternative to the current
automobiles model is needed.

Keeping this in mind, the government of Sunmark decided to pitch the idea of solar power
battery‐based vehicles in the country. This technology is fairly new to the country and has not yet
been commercialized by the players in the automobile industry. The battery charging
infrastructure for implementing this model is in progress and expected to be completed in major
cities in a year by the government. The work will continue in other parts of the country. The
existing old modeled vehicles which have already been purchased by the people till the effective
date (as noti ied by the government) will be allowed to run simultaneously with the new vehicles,
for the next 5 years.

The government of Sunmark invited Agrima Automobiles to enter into the venture of developing
solar power battery‐based vehicles on a large scale. However, the majority shareholders of the
company are against this venture as they believe that the company is not ready at this juncture for
such an overhaul and the pro its of the company are not enough to deal with the subsequent
initial losses.

The citizens of the country, though not directly involved in the deal, are important stakeholders
as the problem of air pollution caused due to vehicular pollution has reached another level,
especially in urban areas. This problem has become a national concern due to consequent
healthcare and lifestyle disruptions.
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Hence, the government of Sunmark decided to pass a law to immediately ban the sale of old
modeled automobiles. This means that Agrima Automobiles and other players in the automobile
market will have to stop their production effectively. The government of Sunmark has received
inancial grant for building the required charging infrastructure across the country from the
World Bank. Additional loans can also be granted to the government of Sunmark, subject to
ful ilment of certain conditions.

All the players of the current automobile manufacturing industry are against the government's
decision and elected Agrima Automobiles as their representative to hold talks with the
government since it is the largest player in the market and the government is also a shareholder
in the same. The government of Sunmark represents the interests of the citizens at large which
are essentially linked to the problem of air pollution being caused by the current model of
vehicles in use and the present infrastructure of the automobile industry.

Agrima Automobiles invited the government representatives for a mediation and negotiation
session which shall be conducted as per the APCAM mediation rules. There they'll try to reach an
agreement with the government to ensure that the implementation of the paradigm shift in the
automobile industry takes place in a gradual manner. The government of Sunmark has agreed for
a mediation session before inalizing any policy decisions, keeping in mind the economic
interests of the industry and the country at large. The government wishes to establish a balance
between the con licting interests and also aims to ensure that impending health concerns of
people are mitigated and usage of renewable resources such as solar energy, infrastructure for
which is readily there in Sunmark, is encouraged.

“RESPONDING PARTY” is the party to which the Competition has assigned the role of the party
which has to respond to the request for the negotiation.

“RULES” shall refer to the Of icial Rules of the Competition and shall be applicable to any
supplementary Rules published by the Organizing Committee.
“TEAM” shall refer to teams participating in the said Competition.

Drafted By: Ms. Iram Majid

IMI, AICM, MCIArb Director, Indian Institute of Arbitration and Mediation Executive director
of Asia Paci ic centre for Arbitration and Mediation
 LLOYD LLOYD
LAW SCHOOL
COLLEGE
OF LAW

Ladder Of Success

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Contact Details:
Ms. Daisy Pallawi | +91‐9523981666
Email ID‐ skmmimnc@lloydlawcollege.edu.in

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