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Case against IBM rescheduled

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The Lawsuit filed against IBM by E-W Information systems Ltd a long standing IBM Business Partner was taken up for trial on November 28, 2012. Due to the Chief prosecution attorney being overseas the case was rescheduled for March 13, 2013.   The action filed by E-W Information Systems Ltd of Sri Lanka (EWIS) against IBM World Corporation of New York (IBM) was set down for evidence by the Learned Commercial High Court Judge before whom it was taken up. In this action admissions and issues had been settled and Court had directed the Plaintiff, EWIS to file its evidence in chief by way of an affidavit.

EWIS has instituted action against IBM for the recovery of damages in a sum of approximately Rupees Two Thousand and Eleven Million (Rs. 2.011 billion) claimed to have been caused to it on account of wrongful actions of IBM.EWIS has stated in its plaint that it has been a Business Partner of IBM in Sri Lanka since the year 1986.Pursuant to such relationship, in mid 2008 IBM had informed EWIS of a Tender from the Ceylon Petroleum Storage Terminals Limited (CPSTL) for the supply of IBM hardware and software, and had intimated that EWIS ought to submit a tender for IBM products and services. EWIS had accordingly obtained all necessary authorization from IBM and had submitted its bid.

Amongst such authorization is a written communication from IBM, confirming to CPSTL that EWIS is authorized to submit the bid and conclude the contract.
EWIS alleges that IBM had also informed another business partner to submit a similar bid for the supply of IBM products and services for such tender, and that such other business partner accordingly also submitted a bid. This bid is said to have been submitted at a substantially higher price than the bid of EWIS.
EWIS contends that IBM stood to make a substantially higher profit in the event of the tender being awarded to the latter bid. The cancellation of the bid submitted by EWIS is therefore alleged to be in the interests of IBM.

Subsequent to tender evaluation, the tender was awarded to EWIS, upon which EWIS became bound to supply the IBM products and services set out in its bid.
However, IBM having undertaken to supply such products and services to EWIS, it is contended that IBM refused to comply with its obligations to do so. IBM had also thereafter terminated, without cause, its Business Partner Agreements with EWIS.

EWIS alleges that this termination, and the refusal to supply the products and services were wrongful acts on the part of IBM, and that such acts caused grave loss and damage to EWIS.EWIS further alleges that such wrongful actions on the part of IBM caused EWIS to default on its obligations to supply the IBM products and services in accordance with its bid and, in addition to causing direct loss to EWIS also caused serious injury to its reputation.

Last modified on Saturday, 23 August 2014 15:21

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