Pepsi Twists The Knife, Seeks To Sue Coke Again

In another twist to Indian edition of the Cola war, Pepsi Foods has filed an application before the Delhi High Court seeking permission to bring a suit for damages against Coca-Cola India.

Pepsi has revealed this in its rejoinder to Coke's reply to the former's petition alleging that Coke had entered into a conspiracy to cause damage to Pepsi and disrupt its business operations by inducing key employees and associates to break existing contracts illegally.

Pepsi's petition had only sought permanent injunction against Coke, restraining it from taking away its employees and business associates. It did not seek any damages.

 

The petition, invoking the 'Law of Torts', had cited incidents of its employees, independent bottlers, business consultants, distributors and institutional clients being offered inducements by Coca-Cola in the form of remuneration much higher than the prevailing industry average.

Hearing in the case, adjourned yesterday by Justice D K Jain, resumes today.

Interpreting Pepsi's statement on a separate suit for damages, an observer said: "Pepsi is reserving the right to seek damages in future and seeking the court's permission in this respect."

However, the rejoinder does not give any details of the damages suit. "

As and when the plaintiffs (Pepsi) file such a suit... that suit will contain the details of the damages suffered.

In any event, the details of the damages are neither relevant nor critical for determining the issues in the present suit," Pepsi has said.

The revelation about seeking permission to file a separate suit for damages has come in response to the point raised by Coke that damage is an "essential" element of tort. "...it would be vitally necessary to state the necessary particulars with dates and amounts in the pleadings," Coke had said.

Dismissing this contention, Pepsi has said that it is not necessary that tangible damage in terms of cost/money must occur as a direct consequence of the actions of Coke.