Swedish Trading gets enjoining order against Volvo’s move to change gear

Swedish Trading Company Ltd., the sole agent and dealer of Volvo cars and related products in Sri Lanka, has instituted legal action against Volvo Car Corporation on 24 February, seeking to prevent the Swedish car manufacturer from appointing any party other than Swedish Trading Company Ltd. as its agent, distributor or partner in Sri Lanka.
The action was filed by Swedish Trading Company pursuant to numerous attempts made to ensure that Volvo Car Corporation honours their contractual obligations arising from the contract between the parties.
Swedish Trading stated that it has operated as the sole agent and dealer of Volvo Car Corporation in Sri Lanka for over 30 years and is responsible for the development achieved and reputation gained by the brand Volvo in Sri Lanka, and that Volvo Car Corporation is not entitled to seek to end the agency.
After hearing submissions of Counsel, the Judge of the High Court, Aruna Ranasinghe, issued an Enjoining Order on 2 March restraining Volvo Car Corporation from appointing any party other than Swedish Trading Company Ltd. as its agent, distributor or partner in Sri Lanka.
Counsel Avindra Rodrigo with Rasika Weeratunga and Nimesha de Silva, instructed by F. J. & G. de Saram, appeared on behalf of the Plaintiff, Swedish Trading Company Ltd.