restrains DCSL, agents
Colombo District Judge K. Sumitrapala issued an enjoining order
on Thursday restraining the Distilleries Company of Sri Lanka (DCSL)
and its agents from intimidating, threatening or preventing licensed
liquor dealers from purchasing liquor manufactured by W.M. Mendis
application was filed by Ms. W.M. Mendis and Co. alleging that DCSL,
whose area managers were all retired military personnel, threatened
wine store owners to abstain from purchasing any liquor manufactured
by W.M. Mendis and Co.
company claims that over the last thirty years, due to its superior
grade of liquor, it obtained a fair sales percentage in the retail
market, and therefore this intimidation. It claimed that DCSL, through
its agents, threatened the liquor dealers that DCSL would not supply
them with any liquor manufactured by them, which has a very large
retail market, if they purchased any of W.M. Mendis and Co. products.
company said that even though many complaints had been made to the
Excise Department regarding the wrongful conduct of DCSL, no action
had been taken.
company said that DCSL had succeeded in acquiring over 86% of the
local retail market through such unfair trade practices and was
using its dominant position to wrongfully eliminate all effective
competitors thereby further increasing its market share.
company is claiming rupees one billion as damages. Attorney M.A.
Sumanthiram with Suren de Silva instructed by Ms. D.L. and F. de
Saram appeared for W.M. Mendis and Co.