Bayir files suit against Sami Labs

bayir-files-suit-against-sami-labs

In response to the case filed by Sabinsa Corp., Bayir Group has announced that its sister organization, Bayir Extracts Pvt Ltd, has filed a lawsuit before a court in Bengaluru against Sami Labs, a division of Sabinsa Corp., and Sabinsa Corp., for misleading and misrepresenting facts in the latter’s press release dated June 1, 2015 as well as for having distributed the same worldwide, and is seeking damages for compensation in the amount of Rs 20 crore in view of potential lost business.

On June 12, 2015, appreciating a prima facie case in favour of Bayir’s claim in the lawsuit, the City Civil Court in Bengaluru, granted an order of temporary injunction against Sabinsa Corp., Dr. Muhammed Majeed, Sami Labs and certain other parties from publishing or in any manner distributing derogatory and untrue information about Bayir Extracts, its affiliates, assigns and other persons claiming through it.

Bayir Group asserts, on the basis of the inspection of the court records by its representatives in India that the Sabinsa’s June 1 2015 press release misrepresented facts relating to the judicial proceedings. The Court of the VII Additional Chief Magistrate has not yet formally recognized the offenses mentioned in the private complaint filed by Sami Labs. As such, the matter has been set down to be taken up at a later date with no further directions in regard to the complaint made. Further, Sabinsa Corp has not initiated any action against Bayir contrary to what is stated in the aforementioned press release. Particularly, there is no direction to the Peenya Police Station to proceed against Bayir, as noted in the Sabinsa release.

Further, Bayir asserts it has supplied turmeric oleoresin as a raw material for further processing to Sami Labs. It was never intended for the US market, either as indicated in Sabinsa’s press release or at all. When Bayir requested Sami Labs to respond on payment default regarding the supplies made by Bayir, Sami Labs raised a dispute about the quality of the material and continued avoiding making payment. Hence, Bayir has immediately initiated legal proceedings by sending Sami Labs a winding up notice for neglecting to pay admitted money due.

Pursuant to the various allegations made by Sami Labs regarding the quality of material supplied by Bayir and apprehending mala fide adulteration of material already supplied to Sami Labs, Bayir has also lodged an information memorandum at the Thyagarajanagar Police Station, Bengaluru, denoting the commission of certain offenses punishable under the Indian Penal Code, 1860 (IPC), viz., Section 405[criminal breach of trust], Section 415 [Cheating], Section 420 [Cheating and dishonestly inducing delivery of property] and Section 425 [mischief] of the IPC. The Police Station has now registered an FIR to initiate due process in this regard.

It may be recalled that Sabinsa Corp. alleged that Bayir Group falsified documents to supply adulterated turmeric oleoresin via forging C of A’s, and thus filed a criminal complaint against Bayir Extracts. According to Sabinsa’s release, its Complaint was filed with the Honorable VII Additional Chief Magistrate, Bangalore under the Code of Criminal Procedure, registered with the court, and referred to the Peenya Police department for further proceedings.

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