DC restrains Ex-Sales Manager of Ceylinco Insurance from employment in competitive company

By S.S. Selvanayagam

The Colombo District Court issued an Enjoining Order against a former employee of Ceylinco Insurance PLC, restraining him from continuing in employment in a competitor insurance company.

District Court Judge G.A.D. Ganepola against the Defendant S.A.U. Chaminda made this order sequent to the litigation initiated by the Plaintiff Ceylinco Insurance PLC which alleged the Defendant had joined in a competitor insurance company in violation of his contract of employment with it.

In its plaint Ceylinco Insurance PLC stated that for the last seven years, it has been the market leader in the insurance field in Sri Lanka, and has introduced many pioneering products to the market such as Ceylinco VIP On-the-Spot, One and Only and On the Spot Three in One.

The Plaintiff Company pleaded that the defendant had been employed as its sales manager, and had knowledge of its customers, details of the policies held by them and the respective premiums, which were of a highly commercially sensitive nature.

The Plaintiff Company further pleaded that the defendant having left its employment had illegally solicited several of its customers to leave the plaintiff and join their competitor.

It also pleaded that in the said circumstances it is entitled on justifiable grounds to restrain the defendant from continuing in employment for a competitor in the insurance business.

Kuvera de Zoysa with Amrit Rajapakse and N. K. de Silva instructed by Sanjay Fonseka appeared for the plaintiff Ceylinco Insurance PLC.