KARNAVATI UNIVERSITY
ACADEMIC SESSION: 2021-2026
SEMESTER-V
ALTERNATIVE DISPUTE RESOLUTION
SUBMITTED TO: SUBMITTED BY:
Mr. Saksham Mishra Kashish Ahuja
Asst. Professor Roll No.:20210401062
BBA LLB (Hons.)
Section-B
ALTERNATIVE DISPUTE RESOLUTION
OVERVIEW:
In a time where natural resources are limited and need to be used responsibly, Innovative
Green Solution (IGS), a company dedicated to sustainable innovations, envisions a
groundbreaking 700 GW Mega Solar Power Plant project in India to revolutionize large-scale
sustainable energy production. IGS is seeking suppliers for solar panels and lithium batteries.
Solar Tech Inc, a prominent solar panel manufacturer, has expressed interest in an exclusive
supply agreement for the project. Lithium Tech Corporation, a leading lithium reserve
extractor, also wants a significant deal with IGS due to their essential role in solar batteries.
However, the three companies are currently unable to agree on the terms, leading to a
deadlock in negotiations.
INTEREST OF THE PARTIES
1. Innovative Green Solutions (IGS) is the primary company behind the Mega Solar
Power Plant project. Their primary focus is to secure suppliers for both solar panels
and lithium for solar battery production. However, they have concerns about the
environmental effects of lithium extraction and the potential ecological impacts of
large-scale solar panel manufacturing.
2. The second party, Solar Tech Inc., is seeking exclusive rights to be the sole supplier of
all the necessary solar panels for the Mega Solar Power Plant project. They insist that
IGS must agree to procure all solar panels exclusively from them, without involving
any other competitors.
3. The third party, Lithium Tech Corporation, aims to establish a significant agreement
with IGS to provide lithium for the production of solar batteries for the Mega Solar
Power Plant project. They are requesting IGS to enter into a long-term contract at a
fixed price.
CONFLICTS BETWEEN PARTIES:
1. In terms of the Exclusive Supply Agreement, Solar Tech Inc. is pushing for sole rights
to supply solar panels for the Mega Power Plant project. In contrast, IGS is interested
in investigating additional innovative solar technologies that can complement Solar
Tech's panels in the Mega Solar Power Plant project. IGS argues that their solar
panels are technologically superior and essential for the project's success. They don't
wish to engage in competition or collaboration with other competitors. Their belief is
that their solar panels are the most suitable choice for this project, and they want to
exclude solar technologies from other companies.
2. Regarding the Lithium Reserves Deal, Lithium Reserves Corporation is eager to
establish a substantial agreement through a long-term contract with a fixed price.
However, IGS is reluctant to commit to a long-term contract as they wish to explore
alternative and potentially more sustainable technologies for lithium extraction. They
hold the view that their lithium reserves are crucial for the success of the Mega Solar
Power Plant, but they want to remain open to more environmentally friendly
extraction methods.
3. IGS has concerns about the potential environmental impact of large-scale production
resulting from exclusive agreements with Solar Tech Inc. and long-term contracts
with Lithium Reserves Corporation. IGS is requesting both companies to provide a
clear demonstration of their production processes and their dedication to
sustainability. They want these companies to follow through with their commitments
rigorously to minimise or prevent any adverse environmental effects.
4. In the Intellectual Property Dispute, Solar Tech Inc., a prominent solar panel
manufacturer, is concerned that sharing production and sustainability technical details
with IGS might expose their intellectual property to potential theft. While they are
willing to commit to sustainability and share certain technical information, they insist
on having sufficient safeguards and guarantees in place to protect their proprietary
information from being compromised.
ALTERNATIVE SOLUTIONS FOR THE PROBLEM
1. To achieve a Fair Supply Agreement, Solar Tech Inc. is aiming for exclusive rights to
supply solar panels for the Mega Power Plant project. In contrast, IGS is interested in
exploring other innovative technologies alongside solar panels. To find common
ground, a potential compromise could involve Solar Tech Inc. becoming the primary
supplier, providing 67% of the total supply, while IGS retains the freedom to explore
innovative technologies for the remaining 33% of the supply to enhance sustainable
energy generation. In return for this flexibility, Solar Tech Inc. could be offered a
long-term contract with favorable pricing terms.
2. In the context of Sustainable Lithium Extraction, Lithium Tech Corporation seeks a
long-term deal with IGS for the Mega Power Plant Project. However, the extraction of
lithium may have negative environmental consequences, which goes against IGS's
environmental objectives. To address this, both parties can enter into an agreement
where Lithium Tech Corporation commits to implementing sustainable extraction
practices to minimise environmental impact. In exchange, IGS can sign a long-term
contract for a substantial lithium supply.
3. To address environmental concerns, a collaborative sustainability committee
comprising members from IGS, SolarTech Inc., and LithiumTech Corporation should
be established. This committee's primary mission is to establish environmental
guidelines and oversee adherence to these standards. Their focus will be on reducing
the environmental effects of lithium extraction, solar panel manufacturing, and the
broader project.
4. In the context of Intellectual Property Protection, Solar Tech Inc., a prominent
manufacturer of top-quality solar panels, considers their panels to be technically
superior and essential compared to other competitors. They are reluctant to make their
technical details public or accessible to the general audience. To address this concern,
IGS can enter into a confidentiality agreement with Solar Tech Inc., ensuring that no
information is disclosed to the public and that any shared details are solely utilised for
the purpose of ensuring sustainable production.
5. Create a profit-sharing framework that accurately represents the contributions made
by each company to the project. This model should be constructed through a clear
assessment of the resources, technology, and expertise brought to the table by each
corporation.