Court orders restraint on Kaduwela company over Hummer EV dispute!!

The Colombo Commercial High Court issued an enjoining order restraining a foreign-controlled company from closing, transferring or alienating a factory in Kaduwela involved in converting vehicle drivers’ seats from left-hand drive to right-hand drive and modifying vehicles.

The order was issued by Colombo Commercial High Court Judge Viraj Ranatunga after considering a case filed by Indian luxury automobile company Gaup Automotive Technologies Private Limited against Auto Group International (Private) Limited, a Kaduwela-based company controlled by a foreign board of directors.

Appearing for the Indian company, President’s Counsel Milinda Gunathilaka told court that the defendant company had received US$250,000 to import two US-manufactured Hummer EV vehicles, convert them from left-hand drive to right-hand drive and deliver them to the plaintiff.

He further submitted that the parties had entered into an agreement under which the Hummer EV vehicles imported from the United States were to be re-exported to India. However, the defendants had allegedly failed to fulfil their obligations under the agreement.

The counsel also alleged that the defendants were attempting to close the factory in breach of the agreement.

He informed court that, as the company’s board of directors comprised foreign nationals, a travel ban had been obtained against them from the Kaduwela Magistrate’s Court.

President’s Counsel further submitted that the plaintiff had made inquiries with the defendants on several occasions regarding the agreement, but they had failed to provide a proper response and had continued to evade taking action to resolve the dispute.

After considering the submissions, Judge Viraj Ranatunga issued an enjoining order restraining the defendants from closing, transferring or alienating the company and its factory.

The judge also issued notices on the defendants in respect of the interim injunction application and ordered them to appear before court on September 3.

President’s Counsel Milinda Gunathilaka, with Sanjaya Marambe and Chamath Surasena, appeared for the Indian company, instructed by Julius & Creasy.