Court rejects bid to halt Unilever distributor terminations
A Dhaka court on Wednesday (28 January) rejected injunction petitions filed by two former distributors of Unilever Bangladesh Limited, clearing the way for the company to proceed with the termination of their distributorships and appoint new distributors in the concerned areas.
The petitions were filed by Masud & Brothers and Agrani Trading Corporation before the Additional District Judge's Court-2 in Dhaka in connection with separate arbitration cases.
The former distributors had sought court orders to stay Unilever's termination notices and restrain the company from appointing new distributors, according to a lawyer involved in the proceedings.
Keep updated, follow The Business Standard's Google news channel
The arbitration cases were filed on 29 August last year, followed by the injunction petitions on 28 September.
During the hearing yesterday, lawyers for Unilever Bangladesh – Nasir Uddin Ahmed Ashim and Tanim Hossain Shawon – argued that the distributorship agreements were terminated lawfully and strictly in line with the terms and conditions agreed upon by both parties.
They also informed the court that the petitioners had suppressed material documents and provided misleading information in different legal proceedings.
After hearing both sides, the court dismissed the injunction petitions, allowing Unilever Bangladesh to proceed with its business decisions regarding distribution arrangements.
