ALTERNATIVE DISPUTE RESOLUTION

NEGOTIATION STRATEGY

TEAM NO. 8

Representation of Mokshith’s Interests

Submitted by:

Divya Meenakshi R

1750151
FACTS

Kenny, Ashita, Harhsa, and Mokshith are friends who have come together to start a computer
sales business, under the name of “Bloom Computers.” They decided to run it through a chain of
outlets spread across Bangalore. They agreed to negotiate to settle the terms of the
Memorandum of Association for running business.

The details of the negotiating parties are as follows:

1. Kenny is a financer who will support the business for a period of 5 years from its
inception.

2. Ashita is a management graduate. She has an experience of over 10 years in business

operations.

3. Harsha is a subject expert known for his expertise in the locality.

4. Mokshith has immovable properties including shopping malls and shops in the concerned
area. He owns ten commercial spaces across Bangalore. He earns Rs. 3 lakhs per month
from these properties. Kenny, Ashita and Harsha are proposing that he must spare 5 of
his commercial spaces for the sake of the business or provide some token amount as
initial investment. However due to his commitments in paying off loans and mortgages,
Mokshith will not be able to spare 5 of his properties for the sake of the business.

All the parties are willing to pool in their resources on negotiated terms.

ISSUES

- Whether Mokshith must provide more than three of his spaces for outlets across
Bangalore, and if so how many?
- Whether Kenny must provide financial support beyond a period of five years from the
inception of the business?
- Whether Harsha must work full time to guide the inception and running of the business,
or is his part time contribution sufficient?
 - Whether Ashita must invest her entire set of working hours in the business?

LAWS APPLICABLE

- If the business is to be constituted as a partnership, then:

1. Indian Partnership Act, 1932
2. Limited Liability Partnership Act, 2008

- If the business is to be constituted as a company, then:

1. Companies Act, 2013

- Employment laws:
1. Contract Labour (Regulation And Abolition) Act, 1970
2. Maternity Benefits Act, 1961
3. Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013
4. Minimum Wages Act, 1948
5. Payment of Wages Act, 1936
6. Equal Remuneration Act, 1976
7. Payment of Bonus Act, 1965
8. Payment of Gratuity Act, 1972
9. Employee Provident Fund and Miscellaneous Provisions Act, 1952
10. Apprentices Act, 1961
11. Child Labour (Prohibition and Regulation) Act, 1986
12. Trade Unions Act, 1926

- Intellectual Property Laws:

 1. The Copyright Act, 1957 (“Copyright Act”), along with the Copyright Rules, 2013
(“Copyright Rules”)
2. The Trade Marks Act, 1999 (“TM Act”) along with the TradeMark Rules, 2002 (“Rules”)

Taxation laws such as:

1. Central Goods and Services Tax Act, 2017

2. Income Tax Act, 1961

Business related laws such as:

1. Indian Contract Act, 1872

2. Specific Relief Act 1963
3. Consumer Protection Act, 2019
4. Karnataka Shops and Commercial Establishments Act, 1961

Legislations dealing with risk management and content regulation such as:

1. Information Technology Act, 2000 and the allied Rules.

INTERESTS

The interests of Mokshith shall be as follows:

- To minimise his contribution with respect to provision of the commercial spaces owned
by him across Bangalore, for the sake of running the aforementioned business.
- To ensure that the business is carried out with minimal risk, maximum efficiency,
profitability, stability, sufficient finance, management, expertise and growth objectives,
in order for the business to succeed in the long run.
BATNA

The best alternative for Mokshith is to provide three of his commercial properties without
procuring rent from “Bloom Computers,” for the purpose of the computer sales business. By
saving costs in rent in this manner, the risk of loss in the business shall be minimised. In this
manner, Mokshith can simply forgo the rent earned from the properties by providing it for free,
and not make any contribution to the initial investment for the business.

WATNA

Mokshith would have to spare multiple properties for the sake of the business, sacrificing the
possibility of procuring rent, lease or such other arrangements through other means. As of now,
Mokshith earns around 3 lakhs per month from renting out his 10 commercial properties.
However if he spares more than 4 of these properties for the computer sales business without
procurement of rent, he will face difficulties in paying off his property loans and mortgages that
he obtained for purchasing some of these properties.