Court issues interim order on alleged undercutting by car rental firms

By S.S. Selvanayagam

The Colombo Commer-cial High Court issued an interim injunction against the business of Ovingo Holdings (Rent-a-Car business).

High Court Judge M. Laffar Thahir issued this interim injunction on an Intellectual Property litigation filed by Casons Rent-a-Car Private Ltd., complaining of alleged undercutting.

The plaintiff company cited Wasantha Wijesekera, Sandun Gayassi and Mohomad Ashraff who are carrying on the business under the name of Ovingo Holdings.

The Court issued the interim injunction restraining the defendant or their servants or agents from carrying on the said business of Rent-a-Car. Notices were issued on the defendants returnable on 5 July.

Ikram Mohammed PC with M.S.A. Wadoo, Palitha Subasinghe instructed by Varners Associates appeared for the Plaintiff. 

The plaintiff stated the 1st and 2nd defendants, who are its former employees, have been acting in concert and collusion with the 3rd defendant, who is presently employed as transport co-ordinator under the plaintiff.

It alleged the defendants have been systematically colluding and siphoning off the business of the plaintiff to the said Ovingo Holdings.

The plaintiff company complained the defendants, in carrying on the business of ‘rent-a-car’ in competition with the plaintiff, have been undercutting the plaintiff with its prices and have been acting in unfair competition or sabotaging the plaintiff’s business.

The plaintiff is the market leader in the Rent-a-Car business with a fleet of over 400 motor vehicles. 

The plaintiff states that it is having an active client base of 5,000 clients and over 100 vehicle suppliers.

It alleged the defendants have surreptitiously removed or stolen its client list, supplier list and other information regarding the pricing and margins of the company.