A Federal High Court sitting in Umuahia has issued an Order restraining the former Managing Director of Davebenlin Nigeria Limited, Engr. Chima Nsudum from importing or dealing in abrasive products pending the determination of the substantive suit in the case of trade mark infringement against him by directors of the company.
The court also gave order that Davebenlin Ltd which trade mark and brand identity is being infringed on should impound the KNCA abrasives sandpaper which the former MD imported and selling and bring them to the court.
Hon Justice D E Esiago of the Federal High Court 11, Umuahia made the order after the court was informed during its sitting that Chima Nsudum is in breach of his earlier order as he is secretly importing the abrasive products and selling same in the Northern region, particularly Abuja, Kaduna, Kano, Jos etc in violation of a subsisting order of the court.
Davebenlin Ltd with corporate offices in Lagos and Aba is the owner of Trade Mark Englesh Abrasives and Yellow Packet design brand. The products are manufactured for the company in Korea with special business secret.
However, trouble started when the former MD, who is the third son of the founder of the company (now deceased), Chima, went behind to take advantage of his former position as MD of the company to import the company’s brand and also another brand called KNCA abrasives without the knowledge of the board of directors.
The directors of Davebenlin told the court that the former MD was selling these products in the North thereby exploiting the company and making huge profits at the detriment of the company. In a bid to continue with his business activities, the former MD had earlier filed a petition to wind up Davebenlin Ltd, this the respondents said is to enable him take over the trading name and brand and package of the company.
In the charge No FHC/UM/PTE/02/2018 between the petitioner Chima Nsudum and Davebelin Ltd, the petitioner is praying the court to wind up Davebenlin Ltd on the grounds that he is not aware of what is going on in the company.
But the Directors who are his siblings opposed the petition, arguing that the MD is economical with the truth given that he has all the structures of the company. The court reached for out of court settlement for the directors. In the new deal the shares of the directors were redistributed accordingly, while the court also ordered that no director of the company can import the products without the approval of the board of directors, or use the business secret of Davebelin.
This the court was told that the former MD has flagrantly disobeyed by importing and still dealing in abrasives without the consent of the board. The court has slated September 30, 2019 for ruling on the motion for Interlocutory injunction.