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Dhaka court backs Unilever in distributor arbitration dispute

Dhaka court backs Unilever in distributor arbitration dispute
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A Dhaka court on Thursday delivered a final verdict in favour of consumer goods company Unilever Bangladesh, upholding its decision to terminate two former distributors.

The ruling came in two arbitration cases filed by Masud & Brothers and Agrani Trading Corporation, who had challenged the termination of their distributorship and sought to prevent Unilever Bangladesh from appointing a new distributor in the area concerned.

The verdict was pronounced by the Additional District Judge Court No 2 in Dhaka in arbitration miscellaneous case numbers 436 and 437 of 2025.

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The court found no merit in the distributors’ applications and dismissed both cases.

Court sources said the distributors had earlier filed two separate declaration suits and two money suits, which were deemed the wrong fora under the law.

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The court rejected their declaration petitions on grounds of maintainability.

After those attempts failed, they filed the arbitration miscellaneous cases seeking an injunction against Unilever Bangladesh.

The matter was heard on the merits on Wednesday, when Unilever Bangladesh argued that the termination had been carried out lawfully and in accordance with the distributorship agreement.

The company also informed the court that the distributors had suppressed several documents and provided misinformation before different courts.

After hearing both parties, the court fixed Thursday for the order and later delivered the verdict rejecting the arbitration cases.

Barrister Nasir Uddin Ahmed Ashim and Barrister Tanim Hossain Shawon appeared on behalf of Unilever Bangladesh, while Advocate Omar Faruq (Faruqi) and Barrister Abir Abbas represented the distributors.

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