High Court has stayed a proposed restructuring of the distribution network of Unilever Bangladesh Ltd, directing that existing distributors continue their operations until the dispute is resolved.
On 9 March, a Division Bench comprising Justice Md Nazrul Islam Talukder and Justice Mahmud Hasan issued a Rule and passed ad-interim orders of stay and direction.
The orders were issued following civil revisional applications filed by Agrani Trading Corporation Limited and Masud & Brothers, two long-standing distributors in the country’s fast-moving consumer goods (FMCG) sector.
The High Court issued a rule calling upon the respondents to show cause as to why the January 29 order passed by the Second Additional District Judge’s Court, Dhaka, should not be set aside.
Simultaneously, the court stayed the operation of the proposed distribution arrangement between Unilever Bangladesh and Vector Enterprise for one year, effectively suspending Vector Enterprise’s appointment as a distributor.
The court also directed that Agrani Trading Corporation Ltd and Masud & Brothers be allowed to continue their distributorship business with Unilever, in accordance with their agreements.
Several officials of Unilever Bangladesh have been directed to respond to the allegations, including Managing Director Md Naharul Islam Molla and Finance Director Zinia Huq.
These proceedings follow earlier legal developments, including summons issued by a Dhaka court against the company and its officials regarding arbitration proceedings initiated by the two distributors.
In a separate legal matter, a Dhaka court recently issued arrest warrants against five senior officials of Unilever Bangladesh in a fraud case filed by Masud & Brothers.
This followed an investigation by the Criminal Investigation Department (CID), which found prima facie evidence of the allegations.
Additionally, the High Court had previously issued a contempt rule against company officials for alleged non-compliance with a prior court order related to the ongoing dispute.
Representatives of Agrani Trading Corporation Ltd and Masud & Brothers welcomed the High Court’s latest order, noting that it ensures the continuity of their operations and protects existing commercial arrangements.
They stated they remain committed to safeguarding lawful business agreements, maintaining stability in the FMCG distribution sector, and pursuing a resolution through the judicial process.
