Public Interest Litigation (PIL) Problem (G)
Parivartan Enterprises is in hot water. A Public Interest Litigation (PIL) has been filed against the Company for defective products. The Court is expected to pass its order in a week. The Company has the option of settling the dispute out of court before the judgement is pronounced.

The out of court settlement will cost the Company INR 10 Crores (100 million). If it is left for the court to decide there is a 50% chance of winning or losing. If Parivartan loses the case the Court will ask the Company to pay INR 40 Crores (400 million) in settlement. If they win, there will be no cost.

The Board of Directors has assembled to decide whether the Company should go for the out of court settlement or await the Court’s verdict. You are a member of the Board of Directors. You have to choose one of the options below:

A. Settle out of court with 50% chance of saving INR 30 Crores (300 million) [saving in comparison with INR 40 Crores (400 million) penalty if the case is lost],

OR

B. Await the Court’s judgement and take 50% chance of saving Rs. 400 million if the case is won.

Your vote will be recorded ANONYMOUSLY.

Please answer the following simple questions before casting your vote. Thank you.

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