Transcript for:
Family Business Mediation Overview

[Music] hello everyone and welcome back to our channel in our previous videos we demonstrated in little segments as to how mediation session works in this video we will be demonstrating a complete mediation session hope you enjoy this video deepak lal and company consisting of four married brothers is a family cloth business situated in dil suknagar all brothers contributed their time and money except ramesh lal he himself earned money and invested it in transport business from bombay mills to hyderabad further purchased a three-floor building for residential purpose in which all four brothers resided for expanding business deepak lalin company opened a new branch in kutakali the company took a loan from xyz bank by motivating ramesh lal's building with his permission after two years competition struck and left deepak lalin company with losses unable to settle the bank loan bank decided to sell ramesh lal's building for settling the loan three brothers consented but ramesh lal refused and argued for the sale of family property situated at sikhindrabad refusal of the proposal by ramesh lal leads him to approach the mediation center attached to the civil code for settlement of dispute afternoon i would like to welcome both the parties to this mediation session my name is samsung vedi and this is my community we would like to thank both the parties for appointing us as the mediators for this session i would just like to state that we both are certified mediators from bangalore mediation center and we both have over 10 years of experience in mediation the parties can feel free to address us by our first name and now i request the parties and their councils to introduce themselves good afternoon everyone my name is ben jose and i'm the council for rameshwaran here i am here on i do not have any authority position to take decisions on on behalf of my client but i'm here on an advisory capacity uh good afternoon everyone my name is ramesh good afternoon everyone my name is nimit in this mediation session i'll be representing my client manoj good afternoon i am manoj and i am here on behalf of deepak thank you parties is it all right if i address both the parties by their first name yes media all right so before we move on further i would like to congratulate both the parties who have decided to amicably settle their dispute remediation for being it's a voluntary confidential and mutual mechanism to settle any dispute i commend both the parties for choosing this forum rather than choosing litigation which might have escalated the issue so i would just like to clarify whether the party parties present at this mediation session have the authority and the power to take any decision on behalf of the organization yes yes thank you all right now i would just like to know from the parties if it's the first time participating in mediation session oh yes so as mediators it is our duty to uh explain the entire procedure that we will be following throughout the session all right so um as already said that mediation is a completely voluntary proceeding right so in which the parties will not be forced to agree to any settlement which you are not comfortable with the process will start with opening statements by both the parties on the basis of that opening statements we the mediators will form a certain agenda agenda is nothing but the flow of the discussion basically now if the parties want they can add or remove anything from the agenda and they can inform the mediators and we shall oblige with the same now if the parties come to a deadlock where when they are unable to discuss the further uh issue uh we will call for a private caucus now a private caucus is nothing but a private session that the mediators have with each of the parties anything that's disclosed in this private caucus is completely confidential and will be shared to the other party only if the party in the caucus allows us to do so and we hope that after such private session the deadlock will be cleared and the discussion can be moved forward one more thing the parties need to know about mediation is that it is informal and a confidential process and anything that happens in the session shall not be disclosed to the outside world so as far as our role mediator is concerned our job is just to facilitate the entire process in the sense that we will interfere ask questions to seek clarifications with the intention to help the parties proceed towards the settlement you shall not act as a judge or pass any legal remark that would influence your decision and we would remain neutral throughout the session despite being the informal process we will be setting up a few ground rules that must be followed throughout the session are the parties clear all right all right now um coming to the ground rules of this session i would just like to say state that we have been allotted 30 minutes for this mediation session and i would request and ask the parties to make the most out of these 30 minutes uh the another thing which is to be kept in mind is that the parties are requested to maintain the decorum of the session and avoid the use of any sort of unparliamentary language here parties shall be respectful towards each other and give equal opportunity uh to the other party whenever the time is uh the parties can themselves also call for a private caucus if they think so that they uh want uh to talk to the mediators privately and they have reached a deadlock uh so if the parties are clear with the ground rules uh yes yes great so now i would request ramesh lal and this council to begin with their own first day i would like to thank the mediators for explaining the ground to ground rules so perfectly and uh helping us throughout the process of mediation uh secondly i'd also like to thank deeper club and cool for taking time out of their schedule to be a part of this mediation and showing that you're ready to cooperate with us uh what i'd like to mainly say is that uh this is an issue that has grown out of hand for uh for us for many reasons and we believe that not only on a professional level has feelings being heard but even on a personal level at the end of the day this is a family business and we do not want any uh feelings to get hurt or any bad blood to happen throughout the process so our main aim in this mediation is to fix whatever issue we have talk through it and find a fruitful solution for both parties so that we again can go through a family business and have a peaceful family time together and now i'd like my counselor to explain about expensive situation thank you so much council as i've said my name is rameshlal firstly i would like to thank the mediators for bringing us with the process of mediation also i would like to thank deepak for agreeing to attend this mediation to sort out the differences between us as you all know that deeper climate co is a family business that was started by my brothers whereas i was involved in a transportation business from uh of material that was talking from bombay built to hyderabad now with the income that i've earned in the transportation business i have purchased a three-floor building so that my brothers and i could live together the same building was later modicated to the bank so that um the deeper valen company could avail a loan now later in order to expand the business they have taken the loan and then later uh the company has been running into losses now to cover up for the losses uh the brothers they have planned to sell the three building three building three floor building that i purchased but since i have solely purchased the building i was not ready for it and instead i suggested that they go for uh selling the family property uh to which my brothers did not complain so by the end of this mediation session i hope that we reach a mutually beneficial decision thank you good afternoon everyone i am nimitz first of all i would like to begin by thanking mediators for laying down the procedure thoroughly i would also thank rameshwara and go for agreeing to this media session and inviting us here now i understand that there are concerns raised by ramesh lal and then we appreciate his efforts for trying to resolve this matter amicability and we also hope that at the end of this mediation session we'll be reaching into a favorable settlement now like my client thank you firstly i would like to thank the mediators for wonderfully explaining the whole process of innovation also i would like to extend my gratitude to my brother ramesh as well as his council so as you all might have known uh my brothers and i started the business of deepak clarence so basically it is a clothing business as to expand the business we took a loan from the bank by mortgaging my brother's building but now we are facing a lot a lot of losses and we are unable to pay back the loan so we decided to sell the building which was mortgaged which my brother was completely against uh he suggested that we should be uh selling the family property instead which me and my brothers are not willing to so by the end of the session uh i really hope that we come to uh agreement uh regarding the uh loan and also that our relationship is alive for more years to come i would like to thank both the parties for giving their opening statements so based on these opening statements i believe that there is only one significant agenda is whether to sell the mortgage property or sell the family uh property to clear the debt so are both the parties fine with the agenda yes all right the parties shall begin with the discussion thank you for setting the agenda i feel that it is not reasonable to ask my client and partner to sell their house because it is the only thing that they have a security selling this house to clear the debt will result the result in such a situation wherein my client and partners will not have anything a security for their family as well as businesses so we cannot let go of this property so while i understand your concerns i request you to understand that our positions aren't that different the building that we are talking about here that belongs to me and that building access my security as well so going forward in my business like in my transparent business in case of any financial troubles i might face in the future i will choose this building as my security all right so um let me understand this does not wish to sell the family property because it works as a security for their future similarly ramesh lal also has the same point of view where the property would act as his security for his future is my understanding right yes yes you may proceed all right adding to what my client just stated the money used for expanding the business of people was from the mortgage of the building of my client which he built through his own transportation business and without the help of his brothers and that was important to understand that all the stakes involved are for my client and it is important for him that this money is paid off to the bank and so the mortgage does not become an issue for my client here the four mothers decided to take loan on the building but there was no sanction on the name of ramesh and and here it is to be noted that my client's brother had spent some money on the renovation so if we let go of this property my clients and his partners will not only lose the security but will also lose the money which is better than innovation i understand that you have renovated the family property but since the loan amount was completely used for the expense of the business i feel it would be completely unfair for me to just sell my property in case manoj or his partners are unable to repay the loan amount further the building has been used as a residential complex rent free by manoj and his brothers it's all the more unfair that manoj and his partners enjoyed the property without any charge and are now stressing on selling it in order to just clear that out outstanding debts towards the bank we do not intend to cause any injustice here the situation in which both the parties are very disciplined ramif owns the building as well as the share in the property whereas my clients and partners only have the share in the property so if you sell this property my my client partners will get to the greater loss uh council i'd like to remind you that this building was used as a residential complex by all four brothers and although my client is not directly involved in the business he was generous enough to consent to give his building as a mortgage to get the money for expanding the business so therefore when you really look at it we're not really different in this particular situation but more similar than different i apologize for the interruption i see the parties have reached a deadlock i believe this is the right movement to call for a private caucus session we would request deepak lalunko to please leave the session so that we can proceed with the private focus session with rameshlagi uh before we begin this session i would just like to post a question before the client and the council how do you think the session is going on so far um yes we did i think so far the session is going all right all right is there anything else you would like to add here i would also like to remind you that anything shared in this session shall not be disclosed to the outside world uh as my counselor has already said uh since both the parties aren't that different from one another i think we can work things out if manoj agrees to sell the family property and then use my share of the property so let me see if i've got this right so mr ramesh you're suggesting that we are selling the family property and use his share to clear the loan and reimburse for renovation expenses would you like me to disclose this proposal to the other party oh yes i'll just like to elaborate what i've just said what i meant is if manoj agrees to sell the family property he can use my share of the property to clear the loan and as well as the expenses incurred by uh the other brothers of manoj for innovating the property now those expenses shall be divided between the four brothers and and those will be later remembered by me and manoj all right thank you party we now request you to leave the session so that we can proceed with the private caucus with people so how do you think the session is going till now it's going great okay so ramesh lal anders council have requested me to disclose the proposal that they offered in their caucus which is to sell the family property and use his share of the prop of the property to clear the loan and out of that share itself he will also reimburse for the renovation expenses i really appreciate the offer uh and also i understand that if our family property is sold off we can decide my brother ramesh's building but the question here is regarding the finances and uh i would also like to remind you that two of my brothers have spent a lot from their savings for renovating the family property building all right so is there anything else you want to add no need okay so before we resume to the joint session i would just like to remind the parties that this session is completely confidential and the any information which you have told me us in this session shall not be disclosed to the other party unless you authorize us to do so so am i at the liberty to disclose this to ramesh lalin's council yes thank you so much parties that was a fruitful caucus session uh so since both the parties have agreed to reveal whatever has been discussed in the private caucus session it may be summed up from the discussion that mr ramesh is willing to sell the family property and use his share to clear the loan and reimburse the renovation expenses and as a counter offer mr deepak is not willing to lose out on the security in the form of family house for the future so do both the parties agree to what had been discussed in the private caucus session yes yes now i request the parties to continue further so we request deepak company to take some time and think about the proposal we made as it would have both of us to continue our businesses without any hindrances from now on i hope my brother understands the situation we are putting if the family property is sold out we do not have a place to recite in this situation i put forth a condition under which my client will be willing to take this offer that is that my client and his partner will be staying in the house and still in for six months and in the meantime they'll look for the look for the houses in which they can stay i believe the counter offer proposed by deeper club is a fair one and my client will be willing to accept it however it is important to note the renter's agreement in this particular instance we believe that rupees 15 000 per month needs to be paid by the particular clients living in the building we feel that the rent of 15 000 rupees is very high taking into consideration the situation in which the my client then you think my is will be able to afford it uh so at this point the minimum rent we can put forward is 12 000 which i think is pretty reasonable given the standard of living and profits made from the businesses [Music] willing to take up this counter offer yes i think the offer is fair enough and we are willing to go ahead with it all right so um seeing that we have reached an agreement i would just like to take this opportunity to lay down what has been decided as decided mr manoj and his brothers are willing to sell the family property and use the share of mr ramesh to pay the loan amount and reimburse the other two brothers for their renovation expenses moreover mr ramesh has agreed to allow mr manoj and his brothers to live with him in the building for a period of six months as tenants for the sum of rupees 10 000 which should give them enough time to find another suitable residential property now i would request both the parties to give their closing statements uh first i'd like to thank the mediators for guiding us throughout this process and helping us find a fruitful solution i would like to thank the counsellor for perfectly being uh accommodating to our needs and uh finding a favorable solution uh firstly i would like to thank the mediators for helping us raise this mutually beneficial decision also i would like to take this opportunity to thank deepak company for council for taking their time and are agreeing to do this mediation session and also in settling this dispute in a peaceful manner i wish all the best of the mclaren company thank you thank you mediator for mediating this session wonderfully and i would also like to thank ramishla and this council for being open and engaging firstly thank you mediators for mediating this session wonderfully also i would like to thank mr ramesh and his council for being very engaging throughout the session and showing interest to keep the relationship alive thank you parties for the closing statements based on what is decided today i will be creating creating an agreement which shall be signed by both the parties and the same shall be binding upon them thank you so much everyone for your time it has been a wonderful mediation session and i wish both the parties all the best for their future thank you for watching this video we hope that you have understood the nuances of mediation also to know more about any particular segment in mediation do watch our mediation playlist in our upcoming videos we will be discussing about negotiation as an adr technique do like share and subscribe to center for adr also if you have any queries please write to us in the comments below until the next video stay tuned to center for area thank you