Supreme Court upholds CCPC Dana oil ruling

THE Supreme Court has upheld the decision by the Competition and Consumer Protection Commission (CCPC) that Dana Oil Corporation be the sole distributor of Castrol products in Zambia on behalf of BP Africa.

This means that Puma Energy Zambia will no longer be distributing Castrol products locally, despite the company having bought BP Zambia.

The judgment follows an appeal motion which was presented to a full bench of the Supreme Court to reverse a ruling and order of a single judge of the same court barring Puma Energy from distributing Castrol products.

The appellants in this matter where being represented by lawyers Eric Silwamba, Joseph Alexander Jalasi and Lubinda Linyama of Messrs Eric Silwamba, Jalasi and Linyama Legal Practitiners and also Nchima Nchito and Mrs Sashi .Nchito Kateka of Messrs Nchito and Nchito advo-

cates.

The facts of the matter were that between February 2012 and April 2012, CCPC and Puma Energy became embroiled in a protracted dispute about whether or not the latter could distribute Castrol products in Zambia.

The dispute culminated in the Board of Commissioners of the respondent (CCPC) imposing a fine on Puma Energy of 2 percent of its annual turnover. CCPC had objected to a request by BP Africa to have Castrol and BP products sold by BP Zambia, with a directive that the foreign firm appoints an independent distributor for Castrol products in Zambia.

BP Africa entered into a contract with Dana Oil Corporation in 2002 to be the sole distributor of Castrol products and was approved by CCPC.

In 2010, BP sold its assets to Puma Energy with approval of CCPC on condition that the contract between BP Africa and Dana Oil for the distribution of

Castrol products remained as authorised in 2002.

Puma Energy, however, abrogated the merger authorisation in 2012 when the company started distributing Castrol products and was fined by CCPC.

In 2016, Puma Energy appealed the High Court decision to the Supreme Court where a single judge of the court pronounced that Puma abrogated the conditions of the merger and were prohibited to distribute Castrol products in Zambia.

Puma Energy however in July last year appealed the decision of the single Supreme Court judge through a motion which took eight months to be resolved by a full bench, to the effect that the decision by CCPC was in order.

In delivering the judgment, Supreme Court judge Evans Hamaundu, sitting with Judges Albert Wood and Jones Chinyama, said the court had upheld the decision by CCPC after carefully examining the documents.