German company sued in Sri Lanka for Rs. 33 m plus interest

A German company named Bomag (BOMAG Fayat Group) Fayat Bomag and GMBH & Company Germany has been sued in the Commercial High Court of Colombo in case No. CHC 182/2019/MR.

The Plaintiff, a local company named K.D. Ebert & Sons Holdings Ltd. had filed an action in the Commercial High Court of Colombo, claiming that they purchased several Bomag Tamping Rammers from the said German company through its agent in Sri Lanka Diesel and Motor Engineering PLC.

The said German company is the manufacturer of the said products, which were offered for sale in Sri Lanka by its agent together with a warranty issued by the principal.

The local company in its Plaint has stated that it was a customer and that the tamping rammers it had purchased had manufacturing defects.

The local company had accordingly filed this action against the German company together with its local agent seeking judgment in a sum of Rs. 33 million plus interest.

The Plaintiff had also stated to Court that they had notified the Defendants of the defects and that they had failed to replace the machinery despite an undertaking to do so.

They stated that the Defendants by selling the defective machinery, failing to service and replace same and the subsequent conduct causing delays, caused them loss and damage.

Bomag Company and its local agent had called for a dismissal of the plaint.

Bomag had stated that they had supplied the tamping rammers to several other customers and that they had not been notified of defects and denied any damage caused by machinery defects.

They also denied acting negligently towards the Plaintiff in manufacturing and selling the said rammers.

The local Company had stated that there was a breach of the contract and the warranties and undertakings and that the Defendants had acted negligently.

The Defendants denied causing any loss.

When this case came up for pre-trial inquiry before the Commercial High Court of Colombo M.S.K.B. Wijeratne on 16 June, the case was directed to be continued for further trial steps on 21 September.

Senior Counsel Hiran de Alwis with Heshan Thambimuttu and Medani Navoda appeared for the local company. The Defendants were represented by Dr. Harsha Cabraal PC with K Illangatillake.