Commercial High Court issues enjoining order against CPC in case filed by dealer

The Commercial High Court of Colombo on Monday issued an Enjoining Order against the Ceylon Petroleum Corporation (CPC), on an Application filed by D.T.A. Attale and Son Ltd. (the Plaintiff).

The application was on the grounds that the CPC is attempting to illegally evict the Plaintiff from its dealership premises contrary to the CPC’s granting the Plaintiff the status of a “Corporation Owned Dealer Operation” fuel station, wherein the fuel station is owned by the CPC but independently operated by D.T.A. Attale and Son who is entitled to a discount from every purchase order made from the CPC.

The Plaintiff, D.T.A. Attale and Son, set out in its Plaint that it had won a tender by submitting a bid for a fuel distribution dealership pursuant to an advertisement by the CPC, the Defendant, in 2009, wherein the premises was severely degraded and in a state of despair and neglect. The Plaintiff pleaded that it had renovate the premises through its own hard work, efforts and expenditure, after the Defendant failed to renovate the dealership premises as promised, and the Defendant had eventually awarded the Plaintiff the status of a Corporation Owned Dealer Operation fuel distribution dealership. 

The Plaintiff elaborated how, despite a lack of support from the Defendant and despite hardships faced in recent times due to the 2019 Easter attacks and the 2020 COVID-19 pandemic, the Plaintiff had continuously boosted their sales figures and brought in revenue for both the Plaintiff and the Defendant. The Plaintiff also set out how it had been consistently rated highly by the Defendant through its “Good Housekeeping/ Incentive Rating” assessment for fuel stations and had received no warnings or inquiries for any shortcomings before.

Despite all of the above, the Plaintiff outlined in its Plaint how the Defendant had suddenly sent a letter to the Plaintiff dated 7 November 2019, making various allegations and claims of arrears which had never been requested beforehand to the Plaintiff in all the years of the Plaintiff’s operations, and sent a further letter dated 18 September 2020 containing further unfounded claims against the Plaintiff and threatening to discontinue the Dealership Agreement with the Plaintiff, to the severe detriment of the Plaintiff who had invested considerable time, effort and money into the running and operation of the fuel station.

High Court Judge Sampath Abeykoon, having considered the submissions made on behalf of the Plaintiff, in the first instance moved to issue an Enjoining Order restraining and preventing the Defendant and/or its agents/servants, directly or indirectly, from acting on the letter dated 18 September 2020 sent by the Defendant, and/or terminating and/or suspending the dealership, by way of an Order dated 23 November 2020. The matter will be called again on 7 December.

D.T.A. Attale and Son, the Plaintiff, was represented in Court by Dr. Harsha Cabral, President’s Counsel with Nishan Premathiratne, Migara Cabral and Krishan Fernandopulle Attorneys-at-Law appearing on the instructions of Messrs Julius and Creasy, Attorneys-at-Law.