UTRAX sues Senok Trade Combine for unfair competition and seeks Rs. 200 m as damages

The Udeshi Tracks & Equipment Ltd. (UTRAX), a company primarily involved in importation, sales, aftersales and maintenance and hiring of heavy machinery used in construction and earth moving segment instituted an Intellectual Property action in the Commercial High Court against Senok Trade Combine Ltd., alleging that Senok is engaged in unfair competition against UTRAX. 

The Plaintiff, UTRAX is a member of the Udeshi Group of Companies and is the exclusive agent for Sumitomo Excavators and Pavers, Hidromek Backhoe Loaders and Loaders, Aquarius Systems Water Aquatic Machines, Terex Off Highway Dump Trucks, RM-Terex Motor Graders, Bell Dredging Equipment and Ultratrex Amphibious Undercarriages.

The Defendant is a member of the Senok Group of Companies and as per the Plaint is engaged in the business of importation and sale of machinery commonly used in the construction and earth moving segment, thus is a direct competitor of the Plaintiff. This legal conflict has arisen in respect of a Tender of National Aquaculture Development Authority of Sri Lanka (NAQDA) to purchase three units of Amphibious Weed Harvesters where UTRAX and Senok along with several other companies have bided and UTRAX has secured the tender. 

The Plaintiff UTRAX through the Plaint has complained to the Court that Senok has resorted to dishonest trade practices in the course of commercial activities in order to obtain competitive advantage over the Plaintiff UTRAX.

UTRAX has pleaded that whilst the bids being evaluated by the Procurement Committee of the Ministry, Senok had unlawfully and dishonestly attempted to interfere with the Tender evaluation process by sending a letter to the Secretary of the Ministry of Fisheries and Aquatic Resources Development and Rural Economy, falsely alleging that the Amphibious Weed Harvesters offered by UTRAX are not made in USA and modified in Malaysia. As per the Plaint, SENOK had alleged that the Amphibious Weed Harvester model offered by UTRAX is only a concept model without any proof of real world capabilities, doubted its efficiency and had raised concerns on safety of the machine operators. 

The Plaintiff has also submitted to Court that Senok had raised these purported allegations formally by way of an objection pursuant to UTRAX being selected as the successful bidder. 

Thereupon the Plaintiff has submitted a detailed clarification along with letters of confirmations obtained from the Plaintiff’s principals namely ‘Aquarius Systems USA’ and ‘Ultratrex Machinery Sdn. Bhd’. However pursuant to a thorough evaluation and considering the clarification by UTAX, the Ministry has awarded the tender to UTRAX.

UTRAX has submitted the Plaint through its legal team, Counsels Nishan Premathiratne with Pravi Karunaratne instructed by Sanjay Fonseka Attorney-at-Law.