Flexport fails in memento supply tender case

Sarath MALALASEKERA

Commercial High Court Judge Rohini Walgama dismissed action filed by Flexport (Pvt) Limited against Bank of Ceylon.

Flexport whose business of various types of furniture, name boards, mementos and packaging using wooden, steel and various types of raw material filed action against Bank of Ceylon claiming that it had wrongfully terminated the tender awarded to the company for the supply of 1600 Mementos which were to be awarded to the Bank of Ceylon staff for long service.

The company stated that it had tendered for the manufacture and supply of 1600 mementos.

The Bank after the award of the tender and after Flexport had commenced to manufacture the said items had terminated the tender and accordingly Flexport had suffered loss and damage as it had commenced production in Singapore.

The Bank said it had made a conditional award of the tender, conditional upon Flexport submitting a Bank Guarantee and confirmation that the said items would be supplied by August 20, 2002.

The Bank’s contention was that Flexport had failed to comply with either of the said two conditions and accordingly the said tender awarded stood cancelled.

Flexport claimed Rs. 3.5 million as damages together with interest on the basis of costs incurred and loss of profits.

After the evidence of the Chairman Flexport and Bank officials the Judge observed that the company is not entitled to any relief on the basis that it had failed to establish its case and the Bank was justified in having terminated the tender.

Court dismissed Flexport action against Bank of Ceylon.V.K. Choksy appeared for the Bank of Ceylon.

Mayura Gunawansa with Viraj Premaratne appeared for Flexport.