Uni Lanka arraigns Hayleys: Breach of obligation costs Rs. 5 m

Thursday, 21 March 2019 01:08 - - {{hitsCtrl.values.hits}}

By S.S. Selvanayagam

Colombo High Court awarded Rs. 5 million to Uni Lanka Distributors Ltd. from Defendant Hayleys Consumers Products Ltd. for acting in breach of obligation entered into a purchase agreement.

High Court Judge Ruwan Fernando in his judgment also held that the plaintiff Uni Lanka is entitled to recover costs of action from the Defendant Hayleys.

He held that the Plaintiff is entitled to recover Rs. 5 million from the Defendant as prospective loss and damages sustained by the Plaintiff due to the wrong and unlawful discontinuation of the purchase agreement in breach of the agreement on the first cause of action together with legal interest thereon until payment in full.

The Plaintiff and the Defendant had entered into a Supplier Agreement whereby the Plaintiff agreed to manufacture and supply ballpoint pens exclusively to the Defendant as per the specification given by the Defendant with the brand name of ‘Hayplus’.

As per the agreement, the Defendant would place orders for the continued purchase of pens with a minimum order of 500,000 units for the first six months and thereafter 800,000 units for the next six months.

The Plaintiff complained that the Defendant had wrongfully, unlawfully and in breach of the said agreement suddenly stopped placing continuous purchase orders and a minimum order of quantity.

The Plaintiff alleged that the Defendant had also failed to collect the finished products which were manufactured and were ready for collection.

The Plaintiff pleaded that in view of the unlawful conduct of the Defendant, the Plaintiff suffered an immense loss.

S.A. Parathalingam PC with N.R. Sivendran, S. Somarathna and Dushyanthi Jayasuriya appeared for the Plaintiff. Dr. Harsha Cabraal PC with Kushan Illangathilleke appeared for the Defendant.