Global Jeans Giant Sued Local Manufacturer, Then Hired Them!

Justice Manmohan, a Judge of Supreme Court of India and a former Chief Justice of Delhi High Court, recently shared an intriguing case where a global jeans brand sued a small Indian manufacturer for counterfeiting. Initially, the brand secured an injunction against the manufacturer, but the court referred the matter to mediation.

During the mediation process, something unexpected happened—the brand recognized the high-quality craftsmanship of the manufacturer and, instead of pursuing litigation, decided to appoint them as an official supplier.

It turned out that the defendant was producing excellent quality jeans. The brand, which had been struggling to find a reliable supplier, ended up appointing the defendant as its official manufacturer, Justice Manmohan said.

This case highlights the transformative potential of Alternative Dispute Resolution (ADR), particularly under India’s new Mediation Act. Justice Manmohan emphasized that mediation can not only resolve disputes but also create unexpected partnerships, turning adversaries into collaborators.

Beyond this case, he also discussed broader legal challenges, including standard essential patents (SEPs), AI regulation, and cross-border dispute resolution. His remarks underscore the need for adaptable legal frameworks in an era of rapid technological and commercial evolution.

Alternative Dispute Resolution (ADR) refers to methods of resolving disputes outside traditional court litigation. It is designed to be faster, more cost-effective, and less adversarial than formal legal proceedings. ADR is widely used in commercial, civil, and even family disputes.

Common ADR Methods

1. Mediation – A neutral third party (mediator) helps disputing parties reach a mutually acceptable solution. The mediator does not impose a decision but facilitates dialogue.
2. Arbitration – A more formal process where an arbitrator (or panel) hears both sides and makes a binding decision, similar to a court ruling but often quicker.
3. Conciliation – Similar to mediation, but the conciliator plays a more active role in suggesting solutions.
4. Negotiation – The simplest form, where parties directly discuss and resolve their dispute without third-party intervention.
5. Lok Adalat (in India) – A unique ADR mechanism where disputes are settled in a community-based setting, often used for civil and minor criminal cases.

ADR is gaining traction globally, especially with the rise of Online Dispute Resolution (ODR), which leverages technology to resolve conflicts remotely.

Source : BarAndBench.com